Over 12 years ago, I opened a savings account with ING Direct. At the time, ING Direct was revolutionizing the banking space by offering substantially higher interest rates than could be found just about anywhere else.
They were able to do this by offering an online-only banking solution. Flash forward a few years, and the economic crisis took several large banks down with it. One of those was ING Direct, which sold their American banking branch to Capital One in 2012.
The result was Capital One 360, an online bank that marries the best features that were offered by ING Direct, with the financial backing and strong financial products and services offered by Capital One.
Today, Capital One 360 is one of the more popular online savings accounts. They feature comparatively high interest rates, easy online access, the ability to create sub-accounts, link your other online banks, make remote deposits, and more.
I maintain my Capital One 360 account to this day – well over a decade since I opened it.
If you aren’t already a customer, then take a few moments to scan through this review. You may decide that Capital One 360 is a good option for your banking needs.
Capital One 360 Banking Review: Savings + Checking Accounts
Let’s start with the features. Capital One 360 has all the features that were found at ING Direct, including savings and checking account options, CDs, sub-accounts, and the ability to link your account to external banks, or directly to a Capital One Invest.
Capital One Invest was formerly known as ShareBuilder; it was also acquired from ING Direct.
Learn more about their services in our Capital One Invest review.
Capital One 360 Online Savings Account
I’ve had this account for close to a decade now – first with ING Direct, and now with Capital One 360.
The thing that first attracted me to this account was the high interest rates compared to many other online banks.
While their interest rates are always competitive, interest rates alone aren’t reason enough to open an account, especially in the current interest rate environment.
Thankfully, Capital One 360 makes up for this in other ways, including ease of use and sub-accounts.
Free Online Checking Accounts
Capital One offers free online checking. Formerly known as Electric Orange Checking, the Capital One 360 checking gives you the freedom to write checks, make ATM withdrawals, utilize online bill pay, and make purchases with a debit card.
In short, you can do anything with this checking account that you can do with virtually any other checking account.
The difference is this checking account doesn’t have any monthly fees, and you can earn interest on the money held in the account.
Sub-Accounts Make Saving Easy
Using a saving account within a savings account doesn’t seem like a big deal until you try it.
Once you see it in action, you wonder how you previously got along without it.
Here’s how it works: you can create one or more sub-account with a unique name. You can then set up an auto-deposit to that account, or make manual deposits at your leisure. This allows you to easily set savings goals and track your progress.
You no longer have to worry about trying to remember what percentage of your savings account is set aside for Christmas or a vacation fund. You can track it any time you log in.
Common examples of sub-accounts include emergency funds, vacation fund, Christmas fund, major purchase, etc.
The cool thing is that you can easily see all of your savings in aggregate, and you aren’t locking the money into these accounts. You can easily tap them if necessary.
Kids savings accounts. This is more or less has the same features as the savings account above. The difference is you can open it in your child’s name.
Competitive Certificates of Deposit Rates
CDs aren’t as exciting as they were a few years ago when you could easily find CDs in the 5% range.
But if you are looking for certificates of deposit, you can check out the options available at Capital One 360.
They are usually very competitive with most other banks. As with all Certificates of Deposit, the interest rates and terms vary. You can compare CD interest rates on this page.
Capital One 360 Mortgages
Capital One 360 offers competitive mortgage rates, but they tend to focus on shorter-term loans, often with the Adjustable Rate Mortgages.
You can, however, lock in a longer-term fixed rate mortgage. As always, you should shop around to compare mortgage rates before locking in a long-term purchase.
But all things consdiered, stick with a bank you already use and trust if the rates are comparable.
Capital One 360 Business Savings Account
I can access the account through my Capital One 360 account login, however, these accounts are not linked. You must link your business savings account to a business checking account.
The good news is you only have to remember one login and PIN to access both accounts.
Capital One Spark Business also offers a 401k plan for small businesses.
Benefits and Downsides to Capital One 360
Let’s start with the benefits, as there are several worth considering. The primary benefit is having easy online access to your funds while earning a competitive interest rate.
The Capital One name is well-known and well-trusted, so you know you are getting a quality product.
The sub-accounts are a nice feature that several other banks have recently begun offering. It’s great for those of us who prefer to “see” where all of our money is.
Tens of thousands of free ATMs. Before the acquisition, ING Direct offered customers around 38,000 free AllPoint ATMs. Once Capital One acquired ING Direct, they added their 2,000 ATMs, giving customers access to over 40,000 ATMs in the US.
That’s pretty impressive!
Finally, remote check deposit makes Capital One 360 one of the most convenient banking options. If you haven’t tried remote check deposit, you need to. It’s a game changer!
Before remote check deposit, customers had to mail in checks, which could take a couple days to arrive, then a couple days to clear. Now, customers can take a snapshot of their check with CheckMate, the Capital One 360 smartphone app.
From there, it’s easy to follow the on-screen prompts to remotely deposit the check. No more stamps and envelopes, and no more waiting on the mail service to deliver the check for deposit!
As for the downsides, there aren’t many. I’ll start with a personal anecdote.
After the transition to Capital One 360, I had to reset my PIN 2 times. This was a small inconvenience but wasn’t a deal breaker for me (I have read other people had to do the same thing).
A more wide-scale consideration has to do with FDIC insurance.
Capital One 360 is FDIC insured, so your money is safe.
However, they are covered under the same certificate as other Capital One banks. So if you were already a Capital One customer, you will want to ensure you don’t have more than $250,000 between your accounts held in one name.
Finally, Capital One 360 interest rates are among the best in the nation, but they may not be the highest option available.
Always shop around to compare many factors before opening a new bank account, including interest rates, usability, features, types of accounts, and more.
Who Should Use Capital One 360?
As I mentioned above, I have been a customer for years.
Their interest rates aren’t the top in the nation right now, but they remain competitive, which is good for my needs.
The other benefits and features far outweigh any negatives that I have experienced. In my opinion, this is an excellent online banking solution for just about anyone.
$25 New Account Bonus: You can get a $25 bonus for opening a new checking or savings account with a minimum of $250.
Certain restrictions apply.
You can read more on our Capital One 360 bonus article, or you can Visit the Capital One 360 website to learn more or to open an account.