I have had a Capital One 360 checking account for some time now, so I figured it would be time to provide a review of the service. Many of you might know of this service, but Capital One bought ING Direct and relabeled the banking service to Capital One 360. They offer both a checking and savings account, which are online only. They are essentially an electronic checking and savings account. I have really enjoyed the service and Capital One made it extremely easy to setup. Here is my Capital One 360 review.
[box type=”success” ]Sign up for Capital One 360[/box]
The Basics of Capital One 360
The Capital One 360 checking accounts are all electronic. They provide you with quick access to your money, but don’t worry about paper statements, checks, or anything else that requires paper. They do provide you with 50 free paper checks if you need them, but they are not automatically sent to you when you sign up. You just have to request them. Along with the 360 checking account, they also provide a 360 savings account. Here are the basics of the Capital One 360 bank accounts and I am sure you will like the features.
- No Hidden Fees!
- No Account Minimums (who doesn’t love that?)
- Free MasterCard® debt card with the checking account
- Mobile Check Deposits
- Access to over 40,000 fee-free ATMs
- Free Direct Deposit (fast and easy to setup)
- Free Mobile App
- Easy to use Bill Pay
- Person 2 Person payments (allows you to easily send money to others)
- No Overdraft Fees (They don’t charge these fees, but you do get charged some interest on the amount you go over. It is like a loan)
- Ability to turn on and off your debit card (more on this later)
- Free and easy to use banking notifications
- You can now deposit cash at Capital One ATMs.
Whew! That was a lot of features to write about. This is why I like my Capital One 360 checking account. Actually I also have the Capital One 360 savings account because they made it so easy to use. Both accounts are working smoothly for me and I am glad I have them. Now, lets dig into more of what makes the Capital One 360 account a good banking option.
Capital One 360 Eligibility
Since Capital One is a bank, they have some eligibility restrictions on their account opening process. Basically, you have to be a US citizen with a valid social security number. You also have to be at least 18 years old. They do have a little gray area with regards to checking your credit. They say they “may or may not” do a credit report pull. This would mean they would “hard” pull your credit. This can lower your credit score a few points. If you have terrible credit, they might not approve your account. This is on their own discretion.
Capital One 360 Interest Rates
One of the big things the Capital One 360 account boasts is the ability to earn interest on your money. While I love to earn interest on money sitting in my checking account, they don’t provide the best rate for checking accounts. The more you have, the more interest they pay, but there is the breakdown for you.
360 Checking Account Rates
- $0 – $49,999.99 – 0.20% APY
- $50,000.00 – $99,999.99 – 0.75% APY
- $100,000.00 or more – 0.80% APY
As you can see, the majority of people probably will only get the 0.20% annual percentage yield (APY). That is not much in my opinion. That being said, it is better than almost all other free checking accounts offered by the big banks. Online banks can offer interest on free accounts because they have a cheaper operation to run. They don’t have to worry about staffing branches or even building them. Those cost money. I am a little partial on the interest earned with the Capital One 360 checking account as I get 0.75% APY with me free credit union account.
360 Savings Account Rates
OK, now lets see what Capital One offers for their 360 Savings account. There is no tier system like the 360 checking accounts, but their rate is variable. Much like a credit card rate, this savings rate change fluctuate over time. It can go up or down. As of the time of this article, the Capital One 360 Savings account is offering an APY of 0.75%. They do link your savings account to your 360 checking, so you can earn interest in both accounts. This can mean you put most of your money in your savings and just keep the money you need liquid in your checking.
How to Setup a Capital One 360 Account
Let’s get into the nitty gritty and see how you can setup a Capital One 360 account. You will need some information before you can setup your account, but it is no different than any other bank. One note they do indicate is that your Capital One 360 account cannot be used for business, power of attorney, or individual retirement account. This is only for a personal checking and savings account. Here is what you will need to do in order to setup the account.
You will go through the sign up process and provide Capital One your personal information. They will verify this on the backend. As you go through, you will have to provide your name, social security number, address, and a few other personal identifiers. After your approval, you will need to setup a link to your existing checking account. This will be for your first deposit.
When you link your Capital One 360 checking account to your old one, Capital One will make one or two small deposits into your existing checking account. This can take up to three days to complete. Once you see them, then you will need to log into your Capital One 360 account and verify the deposits. This will ensure a proper and complete link between your checking accounts. They will then deposit the money you indicated into your new account.
For security purposes, Capital One 360 will hold your initial deposit for 10 days. After this hold time, your funds will be available. Any subsequent deposits will be held for 5 business days before they can be withdrawn. Please note these times before you try to access your money.
If you want to transfer money out of your Capital One 360 account, then it can take up to three business days to show up into your old checking account. Capital One does not charge a fee for this process, but you need to check your other bank to see if they charge. You are able to link up to three personal checking accounts to your Capital One 360 account. This will allow you to make transfers from your different checking accounts. One might ask “Why do I need more than one checking account?”, but I have multiple accounts for specific reasons. You can read more about why I think everyone should have more than one checking account.
What I Like About Capital One 360
I did not have an ING Direct account, so I signed up after it was Capital One 360. The sign up process was super simple. I had my account read to go in about 8 minutes. I easily connected my account to two of my other checking accounts. After the initial deposit and verification, I was off and ready to go. I really like the ease of use Capital One provides. I also love the debit card on/off feature. I use this feature often when I am going on vacation or know I won’t be using the card for some time. It is nice to know it can’t be used when I turn it off. I also enjoy earning interest on my checking account. While the interest rate is not that great, it is better than any big bank, especially brick-and-mortar banks.
My Capital One 360 account is not my main bank, but I do use it occasionally. I would recommend the Capital One 360 account for anyone looking for a no-fee account with no minimums. Capital One also has great customer service, or at least when I called.
What is your take on Capital One 360?