Capital One Bank Review: April 2024
Updated April 4, 2024 at 4:09 pm
Our Methodology Newsweek Vault’s banking experts have done hundreds of hours of research to present you with all the latest information about your banking options. Whether you’re interested in opening a new checking account or savings account, our research spans all the top online banks, credit unions and brick-and-mortar branches.
We assessed the following five key factors to help you choose the best account for your personal finance needs.
- Associated fees
- ATM access
- Balance requirements
- Customer service
- Interest-earning potential
Capital One Bank designs its financial products with the consumer in mind, but it may not be able to provide in-person service.
CDs: Open a new CD account with any amount and decide when to receive your interest—monthly, annually or at the end of your term.
Checking: Enjoy a fee-free checking account that earns a bit of interest and offers features like overdraft protection, bill pay, early paydays and fraud coverage. You can also move your money with Zelle.
Savings: Put your extra money in a high-yield savings account and set up automatic transfers to beef up the balance.
Capital One Bank
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Expert Take: Capital One Bank is customer friendly, offering checking, savings and CD accounts with no fees and high APYs. However, the bank doesn’t have physical locations in all areas, so you should be comfortable managing your money online.
Pros
- You won’t pay any fees to open or maintain your accounts
- Open a checking, savings or CD account with any initial deposit amount
- Earn a high APY on 360 Performance Savings accounts and 360 CDs
Cons
- There may not be a branch near you
- The bank’s Better Business Bureau reviews are mixed
- Cashier’s checks and outgoing domestic wire transfers are pricey ($10 or $20 and $30, respectively)
Vault’s Viewpoint on Capital One Bank
Capital One Bank could be a smart choice for many consumers. We like the financial institution because it offers fee-free banking products, saving you significant money. You can also open a new account with any amount of money, so you don’t have to delay pursuing your financial goals. Plus, all accounts pay interest, rewarding you for your business.
However, while Capital One is a major player in the industry, it doesn’t boast as many physical locations as some of its competitors. That means you may have to complete your banking transactions online or via the mobile app. If you prefer to develop a personal relationship with your banker, you may need to look at other options.
Capital One Bank CDs
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Expert Take
Capital One Bank offers several certificate of deposit (CD) options, with terms starting at six months. Your funds are FDIC insured, and your rate of return is guaranteed, making this financial product a safe investment.
Pros
- No minimum deposit to open
- CD terms from six to 60 months
- Receive interest monthly, annually or at the end of the term
Cons
- Early withdrawal penalty of up to six months’ worth of interest
- Can’t make partial withdrawals
- Longer CD terms currently have lower APYs (annual percentage yields)
Capital One Bank Savings Accounts
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Expert Take
Capital One offers both a high-yield savings account and a savings account for children. You can open either one online in minutes.
Pros
- Earn 4.35% APY on your deposits with the 360 Performance Savings Account
- No minimum initial deposit or balance required for either account
- No monthly or maintenance fees on either account
Cons
- Can’t withdraw funds via ATM
- Kids Savings Account only pays 2.50% APY
- Must fund both new accounts within 60 days
Capital One Bank Checking Accounts
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Expert Take
Capital One offers the 360 Checking Account as an everyday banking solution. You can also open a MONEY Teen Checking account to help your child learn how to manage their finances. Both 360 Checking and MONEY Teen Checking account holders earn a 0.10% APY.
Pros
- No fees to open, use or maintain either account
- 70,000 fee-free ATMs
Cons
- You can’t use paper checks with a MONEY Teen Checking account
- Cashier’s checks cost $10 in branch and $20 online
- Outgoing domestic wire transfers cost $30
Other Capital One Products
Capital One offers more than just consumer checking and savings accounts. You won’t find mortgages, but you can apply for a credit card, obtain an auto loan or refinance existing auto debt. Plus, if you’re an entrepreneur, the bank provides small-business checking and savings accounts, credit cards, personal loans and lines of credit and payment processing solutions.
About Capital One Bank
Capital One has been in the financial industry for more than a quarter century, getting its start offering credit cards. Headquartered in McLean, Virginia, it’s now one of the largest retail banks in the United States. The financial institution has eight other corporate offices—six in the United States, one in Canada and one in the United Kingdom.
While Capital One is A+ rated and accredited by the Better Business Bureau (BBB), the bank’s reputation isn’t perfect. Within the past three years, more than 11,000 complaints have been lodged against Capital One through the BBB. Plus, customers gave the bank just 1.3 out of five stars across more than 2,000 reviews on Trustpilot. Note, many negative reviews and complaints are about receiving poor customer service.
Capital One Bank Fees
Capital One Bank doesn’t charge many fees. Generally, you won’t have to pay any fees associated with your checking or savings account (unless you purchase a cashier’s check or request a wire transfer). You’ll also pay a penalty if you withdraw your money from your CD before the term ends.
The Capital One Mobile App
Eno, the virtual assistant from the Capital One mobile app, can help you manage your accounts while you’re on the go. Available for both Android and iOS devices, you can use the app to:
- See your account balances and transactions
- Lock your debit card if you suspect fraudulent activity
- Check your credit score
- Manage your auto loan or redeem credit card rewards
- Make mobile check deposits
The app will also alert you if it detects suspicious transactions. That way, you can shut down potential scams quickly.
Who Is Capital One Bank Best For?
Capital One Bank may be best for you if you prefer to bank online. Depending on where you live, there may not be a physical location you can visit. Fortunately, you can open and manage your accounts from your computer or via the Capital One mobile app.
Capital One Bank is also a good solution if you’re budget conscious. You won’t have to pay fees for the privilege of having and using your checking and savings account.
Who Should Consider an Alternative to Capital One Bank?
If you want to visit a physical location to handle your banking transactions, you may need to consider alternatives to Capital One Bank. We used the branch locator tool and discovered a lack of branches or cafe locations in many major metropolitan areas.
How Does Capital One Bank Stack Up to Its Competitors?
If you’re shopping for a new bank, you have several options. Here’s how Capital One Bank compares to three of its major competitors:
Capital One Bank vs. Chase Bank
Chase Bank has more than 4,700 branches, making it easier to complete your banking in person. You’ll also have more checking account alternatives to consider.
However, you may have to pay a monthly fee for both your checking and savings accounts, depending on which accounts you elect. In most cases, it’s possible to avoid the fee by meeting the bank’s criteria, such as maintaining a certain account balance.
In addition, Capital One provides a much higher APY on its savings accounts (up to 4.30%). Chase offers a 0.01% APY.
Capital One Bank vs. Bank of America
With roughly 3,900 locations, Bank of America (BoA) also makes it easier to do business live compared to Capital One Bank. However, like Chase, Bank of America accounts generally have monthly fees. You may be able to get those fees waived if you’re under the age of 18 or meet other account activity requirements.
Unlike Capital One, Bank of America has minimum account opening deposit requirements. For example, you must deposit $100 to open a new savings account and $1,000 to open a new CD.
In addition, Bank of America’s savings account features a much lower APY than Capital One’s (0.01% standard APY). BoA’s CD rates also start at a low 0.03% APY.
Capital One Bank vs. Wells Fargo
Wells Fargo offers more checking account options than Capital One. However, you may have to pay a fee to maintain your checking or savings account if you’re over 24 or don’t complete certain account activities monthly.
Wells Fargo pays more interest than Chase or Bank of America, giving you up to 2.50% APY on your Platinum Savings account balance. However, that payout still pales in comparison to what Capital One offers (up to 4.30%).
In addition, you need to deposit at least $25 to open a Wells Fargo savings or checking account. If you want to open a Wells Fargo CD, you must deposit at least $2,500.
Frequently Asked Questions
What Is the ATM Limit for Capital One?
The Capital One ATM withdrawal limit varies based on your account type. For example, you can withdraw $1,000 daily with a 360 Checking Account. However, you can only withdraw $600 per day with a non-360 account.
Is Money Safe at Capital One Bank?
Your money is safe at Capital One Bank. Up to $250,000 of your funds are guaranteed by the Federal Deposit Insurance Corporation (FDIC) in each account category (such as checking and savings).
Where Can I Deposit Cash Into My Capital One Account?
You can deposit cash into your Capital One account at a bank branch or cafe location. You can also make a deposit at CVS and Walgreens using the Capital One mobile app.
How Do I Open a Capital One Bank Account?
You can open a bank account in person at a branch or online. In either case, you’ll need two forms of identification and proof of address.
Editorial Note: Opinions expressed here are author’s alone, not those of any bank, credit card issuer, hotel, airline or other entity. This content has not been reviewed, approved or otherwise endorsed by any of the entities included within the post. We may earn a commission from partner links on Newsweek, but commissions do not affect our editors’ opinions or evaluations.
