Capital One 360: A Competitive Banking Option

By Miranda Marquit on 30 June 2014 (Updated 3 July 2014) 21 comments

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.

360 Savings

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.

360 Checking

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.

Click here to apply for a Capital One 360 account now.

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.

CDs

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.

Mortgages

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.

ShareBuilder

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.

IRAs

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.

Business Account

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.

Bottom Line

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.

Click here to apply now

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Guest's picture
ALS

I've been a member of ING Direct since 2006. I've used the Orange Savings accounts to do some directional saving (such as a Vacation Fund, Christmas Fund, Home Savings Fund, etc.). Unfortunately, I'm not a fan of Capital One so I was disappointed to see them take over ING Direct. Lately, ING Direct's interest rates have fallen below the top and I've finally switched my 4 savings accounts to Ally Bank. Ally is currently offering a higher interest rate than ING Direct/Capital One 360 and it allows you to have multiple savings accounts as ING Direct does. The switch was painless and took around 2 days to move the money to Ally.

Guest's picture
Adonis

I too have been with ING Direct since 2005. Interest rates were just over 5% back then. Over the years, it appeared that that interest rate dropped considerably. I, having a horrible experience with Capital One years ago, moved my accounts over to Ally bank. There interest rates have consistently been higher than ING for a few years now and it's financially wiser to make the switch. Also, Ally has all of the same benefits as Capital One in addition to having no ATM fee at any ATM, nationwide. The search for a specific ATM is over!

Guest's picture
Morphinator

So far, I do not have any complaints about Capital One 360. I signed up a couple years ago, back when it was still under ING. I have had to call their customer service a few times, but every time I have they went over the top to make sure things went well. You actually get to speak to someone here in the U.S. - not someone halfway across the world. In any company these days, that's hard to come by. Their interest rates used to be better, but they're still great. Overdrafts (if you need them) are just a percentage, so you won't get nailed with a huge fee if you pay it back right away. If you want to open an account, or take a look at the different accounts they have, here's a link to their site:

If anyone is looking to open a Capital One 360 account, here's a link to their site:

Guest's picture
Guest

How long have you worked for Capital One?

Guest's picture
Guest

Capital One 360 is a great savings account. Their interest rate is higher than all Brick and Mortar Banks and higher than most online banks. They also offer a $25 bonus if you open with a $250 deposit! ($50 Bonus for checking no Min balance or opening deposit)

Their customer service is top notch and very easy to understand. Their accounts are also very very easy to sit up and they offer a very secure interface to register an account.

You can also transfer money between your savings account and your capital one 360 checking account very easily as well..

My one complaint is that they hold your transfer longer than Ally or my regular brink and mortar bank. If you are using this for savings this is not a bad thing. They usually release the transfer in about 5 days. (this does not apply for their checking account)

Overall I would highly recommend this bank to anyone interested! They also have a checking account promotion currently running.

Guest's picture

This bank really takes security into great deal.They have great deals and very low fees.They do not charge an over draft fee,just a very small amount of interest if you do over draft.

Guest's picture

I have an account with Capital One 360, and have found it to be easy to use. It has a high interest rate, but because I know of other banks that are higher, it is possible that I might switch sometime soon.

Would I recommend this account to people? Sure. Is it something I'm super thrilled about? Not so much. But it's a solid savings account.

Guest's picture
Anne A

Capital One 360 is terrible so I was sorry to see ING go. I plan to dump the 360 account this month. Their phone system has long hold times, their online system keeps changing the security questions that were never asked originally and logging in has become a chore with the new website design.

I hate everything about them. They have money hold times that are twice as long as ING’s. The website is often undergoing “retooling” so you are locked out. Their representatives are unhelpful at best and liars at worst. Put your money elsewhere. Capital One 360 not a good account.

Guest's picture
Guest

really, i've never had any of those problems and so far nothing has changed besides the name

Guest's picture
Guest

Until they were purchased I was an ING customer for 7 years. In general the 360 banking is fine, but gaining access to my account is a real chore. If you forget your pin, they have to mail it to you and you have no access for 5 days - sorry , no easy reset with DOB, Soc. Sec#, home address, phone, last deposit/withdrawl amounts. My latest experience had the rep suggesting he transfer money to a linked account and I use that bank until the new PIN arrived. My advice to Capital One - embrace technology and balance security and convenience.

Guest's picture
Guest

I too have experienced that inconvenience with the pin #. Overall, my experience with ING/Capital One has been a nightmare. I never liked the fact that you never get statements in the mail... not even the end of year 1099. I always end up forgetting to report my 360 interest. And that on-screen touchpad to enter your pin... just give me a text box already! I went to close out my account tonight, but customer service closes at 8 PM. What's up with that? You're an INTERNET BANK!

Guest's picture
Guest

I have a joint checking account with my Mom and opened us a new 360 account because I'm tired of my old banks fees. So far, I don't like it. Just signing into the account is awful. On top of that, it takes 2-4 business days for your account to be "fully established" and you can only link one other account to transfer funds to/from in the first 30 days. I have my own checking and savings account with Ally Bank and I like them so much more. Their whole website is easier to use and understand. I wish I had just opened another account with them. Capital One 360 is restricting to say the least.

Guest's picture
Guest

Finally closed my account with them. They went downhill after ING. I'm currently searching for another online bank.

Guest's picture
Dennis Schilling

I have been a long trem ING direct customer. When Capitalone360 purchased ING I was very concerned but willing to give the benefit of the dount.

Without rattling on about a great number of small inconveniences like the extra steps in the mobile app I will instead focus on the one big issue that is in my opinion a deal breaker: I can't ever log in to my account.

I work in IT and as such, passwords, and accurately remembering them is someong I do fairly regularly. I'm not perfect, but in my years with ING, I never had an issue remembering my sign in PIN.

Since the buyout I have to cycle between 4 browsers (IE x86, chrome, firefox, and opera) to see which will accept my PIN. Initially I was worried I was screwing up but out of 13 calls to customer service, I've been able to authenticate with my PIN 13 times so the issue is not likely me. Every time I go to log in I get a "your pin is incorrect" message and have to start altering browsers. IE (32 bit only) seems to have the best success rate at around 60% but IE is NOT my main browser and I am very dissatisfied to have to log in with a different browser each time.

I have called and left VERY detailed descriptions of my issue with time stamps (to the second) and gone as far as to offer wireshark captures of what I'm getting in response but in the 3 months I've been actively trying they can't seem to resolve this.

This is an online banking account, and as such my ability to log in whenever I need is a paramount concern, Capitalone has managed to break a good and existing relationship beyond repair. Look somewhere else for an online bank or be prepared to go through a lot of phone support to get things going.

I will say their phone support agents have increased in quality but that doesn't fix the underlying problem.

Guest's picture
Guest

I have the worst experience with Capital one 360. This is the worst place to bank with when you try to close your account and get your balance out.

Guest's picture
GuestRob

I've banked with ing since 2007. Now with capital one 360, interacting with my accounts is such a chore. I've noticed that it takes a minimum of 5 days for the money I deposit to become available, and this is only after they receive it, which usually adds a couple days more. To transfer from Sharebuilder to the 360 account, also takes 5 days. So, that means, to pull money out of Sharebuilder, it will take upwards of two weeks before my money ever reaches a bank I can physically touch the money... Needless to say, I am going through the motions to close all accounts.

What a shame...

Guest's picture
DrMalito1

It is very difficult to open a Savings or Checking Capital 360 account if you are not an American citizen. I am a permanent (legal) resident and I have had my application denied several times over the last two years. Calling them does not make any difference, the representatives will "advise" you to call again in a year or two (or when you are a citizen).

It is ridiculous as you are not asking for a loan or a line of credit, you want to give THEM YOUR MONEY!

It was much easier to me to open an account with TD Ameritrade. They also offer checking, savings and money market accounts. On plus, you can trade shares with them. Too bad Capital One 360 is not as much accommodating because I really like the ShareBuilder platform. But I supposed they hate immigrants ... Nevertheless, aren't we all?

Guest's picture
Guest

They took 30 minutes to say I was initially approved.

It then took 3 months and hundreds of hours and constant reassuring that I would be approved before being rejected.

I asked at least four times if we should stop because the process was intolerable. They assured me I was in good standing and they just needed to get the documents. After all that and $500 in expenses, I was turned down.

This group is not trustworthy. If you have any other options....TAKE THEM!

Guest's picture
Dustin

If I owe money to Capital One Credit cards can they pull from my Cap 360 Account now?

Guest's picture
Chris

I have had Capital One 360 account since 2010 so I cannot comment as to ING Direct, but I will be closing my account as soon as I get access to my money. I will be closing escrow the next week on a home and had roughly 25k that was transferred into my Capital One account via ACH Direct Deposit on 4/6/14. The funds had complete swept over today 4/9/14. I needed to transfer that and the remaining balance to my US Bank account because I need to wire the money on 4/15/14 to the escrow company to finalize the purchase of my home. I transferred money from four other bank accounts on 4/6/14 and all those cleared by 4/9/14. I find out today, that Capital One has placed a hold on the entire 25k until 4/16/14. The funds and account info has complete swept to my Capital One account, but they are holding the money due to set internal policies.

I spoke to four different representatives who all basically told me it is there policy to hold ACH transfers for five additional days and there is nothing I can do to get the hold removed. I am not an expert, but I believe this violates section 229.10 of the FDIC. Either way, I will not bank with a company who arbitrarily sets their own rules and places holds on their customer's money with no regard as to the outcome to those policies. There are far to many better banks out there that value their customers.

Guest's picture
Guest

I've been an ING customer since 2007. I loved them. My money was available quickly. If I made a transfer from a linked account I got the money faster and there were no overdraft fees. ( That's the main reason I chose them) Since they moved to Capital one 1st they told me they would just charge me interest on anything overdrafted now they've changed it to were I get emails saying a payment was processed due to NSF and they threaten to close down my account. I've been with ING for 7 years and never had an issue with threatening to close my account. If the funds weren't there they didn't pay it and never once complianed.

Then they told me if they did close it I'd have to wait 2 weeks to receive my money!!! They havent' closed it yet, but I have moved my direct deposit paychecks to a prepaid card while I find a new bank. I am going to look into this Ally. I've heard of them but never tried them. I am also looking for a local bank.

1 more thing, I transferred funds from a linked account Sunday. The funds won't be available until Weds. Now if I am trying to stop something from overdrawing... how is this helpful. At a regular bank as long as the money is deposited by 3pm on Monday, the funds will be available on Tues to clear checks. Why does Capital One keep it another day? I've never had a bounced payroll or deposit with them ever...

The website is horrible. Can't use the version of IE am running.