Capital One 360 Checking Account Review
Capital One may be known best for its popular travel and rewards credit cards.
Capital One 360 is an online banking division of Capital One that also happens to be one of the most popular destinations for people seeking an online bank. One go-to product is the 360 Checking account, an online checking account that delivers great rates and features without any fees.
Learn more about the benefits of the account to see if it is right for you:
Never Pay a Fee or Deal with a Minimum Balance
Banks these days seem to nickel and dime customers wherever they can. Monthly maintenance fees, ATM fees, and other fees can cause your balance to dwindle even if you’re a good saver.
The biggest draw of Capital One 360’s checking account is that there is no minimum balance required to open the account. On top of that, there are no maintenance fees. No matter how much or how little you keep in the account, it will cost the same amount, nothing. In an age where banks are charging you to hold your money, having somewhere truly safe to keep your cash is invaluable.
Easy to Use Overdraft Line of Credit with No Fees
Capital One 360 makes it so that you're not paying expensive overdraft fees when you spend more than you have in your account.
After you open your account, you can apply for an overdraft line of credit through your online portal. If your application is approved, you can receive a credit limit as high as $1,000. When you make a purchase or transaction that exceeds the balance of your account, the difference is borrowed from the overdraft line of credit.
How it works
When you make a purchase or transaction that exceeds the balance of your account, the difference is borrowed from the overdraft line of credit. Then, you’ll have to make payments on the loan. The interest rate is high, so you should try to pay it in full to avoid incurring interest charges. The good news is that the rate is lower than the rate charged by most credit cards. You can make a payment simply by transferring money from another account into your 360 Checking account. You’ll get a reminder e-mail that will tell you the minimum you must pay each month.
The good news is that the rate is lower than the rate charged by most credit cards. You can make a payment simply by transferring money from another account into your 360 Checking account. You’ll get a reminder e-mail that will tell you the minimum you must pay each month.
Another option is to transfer from savings
If you decide to stop using an overdraft line of credit, you can switch to using the savings transfer option. With the savings transfer, if you try to make a purchase that exceeds your checking account’s balance, the funds will be taken from a 360 Savings account.
Neither the savings transfer nor the overdraft line of credit charges a fee when you use them.
Easy Access to ATMs Nationwide
Capital One 360 will never charge an ATM fee. However, the operator of any out-of-network ATM may impose a surcharge. The online bank is partnered with the Allpoint ATM network to provide surcharge-free access to more than 40,000 ATMs in the country.
The online bank is partnered with the Allpoint ATM network to provide surcharge-free access to more than 40,000 ATMs in the country. Also, customers can use any Capital One ATM for free. Its branch and ATM network is present in Connecticut, Washington DC, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, and Virginia.
Capital One also operates café branches in other states, but not every state has a physical Capital One location. That means that your phone and ATMs will be your primary way to interact with your account.
No Fees for Foreign Transactions or ATMs Too
Keeping with Capital One’s credit card offerings, there are no fees for using your card during international trips.
When making foreign purchases or ATM withdrawals you will have to convert your US dollars to the local currency. Capital One will automatically do the conversion for you using the market rate at the time of the transaction. There are no fees charged by Capital One for performing the conversion. Again, you will still be responsible for fees charged by the ATM operators.
Leading Interest Rates on Higher Balances
After the ability to access the money in your checking account, the next most important thing about a bank account is its interest rate. The Capital One 360 checking account offers three interest rate tiers based on your account’s balance:
- Less than $50,000
- $50,0000 to $99,999.99
- $100,000 or more
Capital One 360’s interest rates tend to beat most national banks, but the lower end rates fall short of the rates offered by online banks. If you have a lot of money to keep in your checking account you can earn more at Capital One than you can elsewhere. Otherwise, you might be able to get more interest with a different account.
No Monthly Fees
As mentioned before, the Capital One 360 Checking account does not charge a monthly service fee or other monthly fees. By keeping your money working for you, you can get closer to achieving your financial goals.
Capital One 360 Checking Account Fees
|Monthly Maintenance Fee||$0|
|Out-of-Network ATM Fee||$0 (ATM operator fees may apply)|
|Overdraft Protection Transfer||N/A|
|Deposited Item Returned or Cashed Check Returned||$0|
|Incoming Domestic Wire Transfer||$0|
|Incoming International Wire Transfer||$0|
Manage Your Account and Deposit Checks From Anywhere
Capital One strives to make accessing your account as easy as possible. That’s why they’ve built a nationwide network of ATMs and opened physical banks and café locations.
On top of the convenient ways to get physical cash in your hand, Capital One makes it easy to manage your account online. You can access your account through a computer to make transfers or pay bills. You can also manage your account on the go using Capital One 360’s smartphone app. If you want to deposit a check, it’s easy to do using the account’s mobile deposit feature.
How Does It Compare
Capital One 360 is just one bank out of the hundreds that you could work with. If you need to open a checking account, consider these other banks too.
Bank of Internet USA Rewards Checking
The Bank of Internet USA Rewards Checking account offers one of the best interest rates available from a checking account. The catch is that you’ll need to jump through a few hoops each month if you want to earn that rate.
To qualify for the highest rate available, you’ll need to receive $1,000 in direct deposits each month. You also have to use your Rewards Checking Visa debit card 15 times in a month. If you meet one, but not both requirements, you’ll earn a moderate interest rate.
Though using a debit card means you’re passing up cash back or other credit card rewards, you can still get rewarded for using this debit card.
When you log in to your Bank of Internet USA account, you’ll see a list of cash back offers. These offers will offer a statement credit of a certain amount if you spend at least a certain amount at the specified store. Add the offer to your debit card and you’ll automatically receive a statement credit if you meet the requirements.
EverBank Yield Pledge Checking
The EverBank Yield Pledge Checking Account requires a $5,000 minimum deposit to open. If you can meet that hefty requirement, you’ll get an account with no monthly fees and ATM fee reimbursement. The main draw of this account is the Yield Pledge. EverBank promises that its checking account will always offer an interest rate in the top 5% of similar accounts. If you have an EverBank Yield Pledge Checking account you can rest easy that your money is earning as much as it can.
Ally Bank Interest Checking
Ally Bank is one of the biggest online-only banks in the United States. It offers a full suite of financial services, including checking accounts.
Like the Capital One 360 checking account, Ally’s Interest Checking Account offers interest tiers. One interest rate applies to accounts with a balance under $15,000. The other rate applies to accounts with $15,000 or more. Both rates are lower than the rates that Capital One offers, but Ally tries to make up for it in other ways.
One of Ally Bank’s biggest benefits is that you can receive ATM fee refunds, up to $10 per statement. No matter where you are in the US, you can use any ATM and get the fee refunded. That makes it easy to get your cash without having to worry about finding an in-network ATM.
If you’re a heavy cash user or have other accounts with Ally Bank, the convenience of the Ally Bank Interest Checking Account is hard to beat.
The Capital One 360 Checking account offers a mix of convenience and high interest rates, so long as you have a high balance. It doesn’t excel in any one category, but it does not lag behind in any either.
If you want a safe, easy place to store your money, the Capital One 360 Checking account is a good choice. If you know that you want to earn the best rate available or that you need to be able to use any ATM in a pinch, consider a different account.