Capital One 360: A Competitive Banking Option
It's been a few years since Capital One bought ING DIRECT, the popular bank that conducted most of its operations online. (See also: 7 Banks Still Offering Free Interest-Bearing Checking Accounts)
For most people looking to centralize their banking and find competitive rates, Capital One 360 is a viable option. Capital One 360 makes it easy to access all of your accounts, including your investment accounts, from your account summary.
Features and Benefits of Capital One 360
Capital One 360 offers a variety of banking products and services.
This is the classic account that started it all. There are no fees, no minimum requirements, and no catches. Right now, the yield is %, which is reasonably competitive, especially when you consider that there are no minimums and no fees. It’s easy to link your account to other banks and set up automatic transfers to make saving easy.
Kids Savings Account
My son’s savings account at Capital One 360 offers the % yield that kicks the crap out of the 0.20% he was getting at the local credit union. It’s easy to monitor the account from your own dashboard and to teach your child the value of saving early on.
You can open a checking account with Capital One 360 and earn a yield on the balance. Current yields range from 0.20% to 0.80%, depending on how much money is in the account. There are 2,000 Capital One ATMs in addition to 38,000 fee-free Allpoint ATMs account holders can use.
- This account has no fees and no minimums, and you can use P2P Payments to send money to family and friends for free.
- Bill pay is free, even when you have paper checks sent.
- You can use CheckMate to deposit checks remotely, and the account comes with overdraft protection.
- If you overdraw your account, you won’t end up paying a fee. Instead, you are just charged an interest fee (currently 11.25%) on the overdraft until it’s paid off.
MONEY (Teen Checking)MONEY is an account created specifically for the teen user. Teach your teen to manage her money with this no fee and no minimum account that earns 0.25% interest.
The yields on the CDs from Capital One 360 are not as competitive as they could be, ranging from 0.40% to 0.90%. You can choose your term, and you can also choose when you want to receive your interest payments.
The Capital One 360 mortgage offers fixed and variable rate options for a new purchase or a refinance. The closing costs are very straightforward, and right now the rates are still quite low. You can also get a home equity loan with a variable rate starting at 4.0%, or lock in a slightly higher rate for 15 years.
With ShareBuilder you can invest in stocks, mutual funds, and ETFs, as well as trade options. There is no account minimum, and you can choose between paying a $12 monthly fee and getting a lower price on trades, or just opening the account with the Basic version. I have this version, in which regular purchases are $9.95 a transaction. However, since I have an automatic investment plan set up, I only pay $4 a transaction. It’s easy, straightforward, and the pricing is competitive with the automatic investing.
Note: ShareBuilder is currently offering a $50 bonus for new account. Click here to learn more.
You can choose to open a savings IRA, or you can use ShareBuilder to open an investment IRA. With the savings IRA, you have all the money in CDs and savings accounts; you need to go the ShareBuilder route if you want to invest in stocks, mutual funds, or ETFs. You can also rollover your 401(k) into an IRA from Capital One 360.
Capital One 360 also offers business banking products. You can open a business savings account, or a business CD. The current yield on the business savings account is lower than what you get with personal savings, though.
You can also use the ShareBuilder 401(k) to set up a retirement plan for your small business. It’s fairly easy to set up, and you can offer this benefit to your employees.
Overall, Capital One 360 is a viable competitor. The products offered remain fairly competitive. Additionally, the low-fee, low-hassle structure of the bank makes it easy to open accounts, and avoid watching your wealth erode due to hidden fees and complicated requirements.