Capital One 360 is one of the oldest online banks. In this review, we look at the savings products it offers, the interest rates, and the fees.
When Capital One purchased ING Direct to create Capital One 360, it made a splash in the online savings account market. Now, Capital One 360 offers a whole host of fee-free online savings account options that are easy to use. Here, we’ll talk about the accounts 360 offers, including their key features and fees.
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Savings Accounts Offered
Currently, Capital One has three true savings account offerings, as well as some IRA and CD options. Since this review is focused on pure savings accounts, we’ll skip these latter two options. The savings accounts include:
- 360 Savings: This is the traditional FDIC-insured online savings account on offer. It has a 1.00% APY and a $0 minimum balance.
- 360 Money Market: This account offers up to 1.50% APY, depending on your balance. But you need to have a balance of at least $10,000 to get the higher APY.
- Kids Savings Account: This one looks a lot like the typical 360 Savings, with a 1.00% APY. But it has some additional features that are just for kids.
We’ll break out the features and fees associated with each account, and then talk about which one might be right for your particular needs.
360 Savings Account
This fee-free account offers a 1.00% APY. It’s not the highest in the market for online accounts, but it’s also not the lowest. And the fee-free account with no minimum deposit makes it a good option for those who don’t have a ton to put into savings right away. Of course, the account is FDIC insured, as well, so you know your money will be safe.
One thing that’s nice about this account is that you can set up an automated savings plan. The account will pull money from your main checking account on a regular basis, whenever you set it. Automating your savings is a great way to become a better saver, so this is a wonderful feature.
Other features include:
- Free transfers: There’s no fee to transfer money from any external or Capital One account to this savings account.
- Savings goals: If you want to save for specific things, this is a great option. You can set up a savings goal and keep track of your progress regularly.
- Mobile check deposit: Snap a picture of a check from your phone, and deposit it into your 360 Savings Account from anywhere.
Speaking of that last feature, Capital One is known for its great mobile app. It lets you do all of your account management conveniently on your phone.
360 Money Market Account
Unless you already have a chunk of change to put into your new Capital One 360 account, skip the Money Market option. Its 1.50% interest rate looks attractive. That is until you realize that you need at least $10,000 to get that rate. Less than that, and you’ll only get .85% APY, which is significantly less than you’ll get with the 360 Savings account.
The other account features are similar, though, including the fee-free structure and the mobile savings tools. But your best bet here is to use the 360 Savings account until you have a $10,000 balance. You could then transfer that money–maybe part of your emergency fund–to the 360 Money Market account to take advantage of the higher interest rates. But until you’ve met that balance threshold, don’t bother.
Kids Savings Account
The Kids Savings Account is a great option if you want to teach your kids to manage their money. It’s very similar to the 360 Savings option. It has the same 1.00% APY, no fees or minimum balances, and online savings tools. You can, for instance, schedule your kids’ allowance to come into their account from yours on a regular basis. Kids can also use the My Savings Goals tool to save for specific things.
The main difference between this account and the adult version is that the app includes parental controls. Adults can sign into the account with their own PIN to manage the account details. And you can keep tabs on how your kids are saving or using their money.
Opening Multiple Accounts
One of the great things about the Capital One 360 system is that its set up to let you easily open multiple linked accounts. You can have up to 25 accounts between 360 Savings and 360 Money Market. This is a great option for saving for specific goals. You could have one account for emergency savings, another for shorter-term savings, and a few more for specific savings goals.
Managing multiple accounts is easy with the Capital One 360 online tools and app. So you don’t have to worry about getting confused as to where your money is or how to access it. You can just sign on online and see where you are on your various savings goals at any given time.
The bottom line on the Capital One 360 accounts is that they’re a decent option, especially if having multiple savings accounts will help you reach your goals. It doesn’t have the absolute best APY around. If you want that, check out options like Barclays Online Savings, which has a rate of 1.50%.
However, Capital One has become known for its easy-to-use apps and online tools, which is nice. So if you’re looking for an easy way to set up multiple accounts to manage multiple goals, Capital One 360 could be an excellent place to begin.
Published or updated March 26, 2018.