Capital One 360 Savings Account Review
Having savings in the bank can be a lifesaver when you wind up in a financial bind. When you’ve got savings to fall back on, you’re less likely to have to take out a loan or turn to a high-interest credit card to pay for an out-of-the-blue expense. If you’ve got some money stashed away in savings, the big question is where you should put it.
The Capital One 360 Savings Account could be a good fit if you’re looking for an online saving account with a competitive interest rate. Capital One has over 800 branches in the U.S., including 10 cafe-style locations for the Capital One 360 brand, and 2,000 ATMs so you’ve got plenty of options for accessing your savings.
The Capital One 360 Savings Account comes with plenty of features. Here’s a quick rundown of the key details:
- Earn interest on your savings
- No monthly fee
- No minimum required to open an account
- No monthly minimum balance required
- Schedule automatic savings transfers
- Open up to 25 separate savings accounts, based on your goals
- Deposit checks from your mobile device
- Use mobile banking to manage your account
- Set up direct deposit to easily add to your savings
- Link your savings account to your Capital One checking account for optional overdraft protection
As you can see, there are a lot of perks that go along with opening a Capital One 360 Savings Account. Now let’s dive into the finer points of how these accounts work.
Capital One 360 Savings Account Pros & Cons
Earning Interest With Your Capital One 360 Savings Account
The Capital One 360 Savings Account offers a competitive interest rate on savings. You always earn the same flat rate, regardless of how high or low your balance is. That’s important to know if you’re looking for a savings option with tiered interest rates instead. Interest is compounded and credited to your account on a monthly basis.
Tip: Check out MyBankTracker’s APY calculator to see how much interest your savings could earn.
This Account doesn’t require a minimum deposit to open an account. Ally also steers clear of charging monthly maintenance fees on savings. If you already have a checking or credit card account with Capital One, however, you might be more inclined to keep your savings there too, even if it means earning a slightly lower interest rate.
Comparing the Monthly Fee
One of the great things about choosing an online savings account is that they typically come with minimal fees. The Capital One 360 Savings Account is no exception. There’s no monthly maintenance fee to worry about. That’s not always the case with standard savings accounts.
Capital One 360 Savings Account Fees
|Monthly Maintenance Fee||$0|
|Stop payment fee||$25|
|Outgoing domestic wire transfer||$30|
Take the Chase SavingsSM Account, for example. This account charges a $5 monthly service fee unless you’re able to meet certain requirements. The fee increases to $20 for the Chase Plus SavingsSM Account. Bank of America®’s Regular Savings Account also comes with a $5 fee. There are ways to avoid the fee but they involve maintaining a minimum balance or making a certain number of transfers from your checking to savings each month.
The Capital One 360 Savings Account doesn’t require you to do any of that. You can keep $50 or $50,000 in your account and you still won’t pay a fee. You can set up a Capital One checking account and link it to your savings or keep your checking at a completely different bank. Either way, your savings won’t be nickel-and-dimed by a monthly fee.
Does the Account Charge Any Other Fees?
While there’s no monthly service fee, there are a couple of other fees that you need to know about. Generally, don't expect to encounter these fees on a regular basis.
First, there’s the wire transfer fee. If you set up an outgoing domestic wire transfer from your account, Capital One will charge you $30 per wire. This fee is deducted directly from your savings.
The other fee to be aware of is the statement copy fee. If you need a copy of one of your statements from the previous two years, you’ll pay $5 per copy if Capital One generates the statement for you. An easy way to avoid the fee is to manage your account online and download statements yourself in PDF form.
One thing you won’t have to pay a fee for is an overdraft. If you’ve got a Capital One checking account, you can link it to your savings for overdraft protection. If you overdraft your checking account, Capital One automatically transfers money over from your savings to cover it without charging a fee.
Depositing Funds to Your Account
When you need to add money to your Capital One 360 Savings Account you’ve got a few ways to do it.
For example, you can make cash and check deposits at a Capital One branch or a Capital One 360 cafe location. You can also deposit cash and checks at a Capital One ATM.
If you’re not near a branch, cafe or ATM, you can deposit checks right from your phone. To use mobile check deposit, you have to download the Capital One 360 mobile app. You log in to your account, click on the ‘Deposit’ icon, snap a picture of the check and you’re done. Just remember that if you’re depositing checks through your phone or tablet, it may take a little longer for those deposits to clear your account.
As mentioned earlier, direct deposit is another option for adding money to your savings. To set up direct deposit, you’ll need to share your Capital One 360 Savings Account number and Capital One’s routing number with your employer. You can choose to have some or all of your paycheck deposited directly into your savings account.
Finally, you can make deposits by linking your savings account to an external account at a different bank. To set up an external account, sign in to your Capital One 360 account and click ‘Add Link’. You’ll have to answer some security questions and provide the details for the account you want to add.
Capital One will then make two small deposits into this external account. To verify your account, you’ll have to log in to Capital One 360 and click on the ‘External Accounts’ tab and provide the amounts of those deposits. Once your external account is confirmed, you’re all set to make transfers into or out of your Capital One 360 Savings Account.
Track Your Goals and Build Your Savings Automatically
Getting ahead financially isn’t always easy. Sometimes you need a little help to hit your target. The Capital One 360 Savings Account features two useful tools for improving your financial outlook.
My Savings Goals is a free tool that lets you set a goal, track your progress and celebrate your success. For instance, let’s say you want to save up a down payment so you can buy a home. You want to save $20,000 in 18 months. You can set up a separate Capital One 360 Savings Account just for that purpose. Then, you can use My Savings Goals to keep an eye on how well you’re doing.
If you forget to make a transfer into savings one month, Capital One’s other savings tool can help you out. The Automatic Savings Plan makes saving virtually stress-free.
To use this tool, you simply tell Capital One how much you’d like to save and how often you’d like money transferred into your Capital One 360 Savings Account. Capital One handles the hard part of moving money between your accounts automatically.
It takes less than a minute to set up an Automatic Savings Plan and you can stop or change your plan at any time. That’s an appealing benefit if you’ve struggled with saving in the past and you’re ready to start building up your cash reserves.
Compared to Other Online Savings Accounts
There are many online banks that battle with Capital One 360 when it comes to high-yield savings rates. These other online savings accounts may also have similar fee-friendly policies:
Ally Bank Online Savings Account
Ally Bank is one of the more popular online banks with a savings rate that is higher than that offered by Capital One 360. It also allows customers to create multiple accounts for free and they can be nicknamed for specific financial goals.
Synchrony Bank High-Yield Savings
Synchrony Bank offers a market-leading interest rate on its online savings account. Additionally, you can get an optional ATM card for easy cash withdrawals. However, the online bank doesn't yet have a dedicated mobile banking app.
Capital One 360 Money Market Account
The Capital One 360 Money Market Account is very similar to the online savings account, except you can get a significantly high interest rate if you have a balance of $10,000 or more.
Final Verdict: For High-Yield Savings With a Touch of Branch Banking
The Capital One 360 Savings Account is a good choice if you want to earn a better APY on your savings than what your local bank might be offering but you don’t want to get bogged down by a ton of fees. One thing you have to consider, however, is the convenience factor.
If you don’t live near a Capital One branch, cafe or ATM, for example, would you be comfortable using mobile deposit or linking an outside account to add money to your savings? If you need to tap the funds quickly, are you okay with potentially paying a foreign ATM fee to withdraw cash?
If you’re considering a Capital One 360 Savings Account, be sure to check out the rates other banks are offering. While you’re at it, scope out the minimum balance requirements and monthly fees. Other banks have higher savings rates.