Capital One Bank Review (February 2025) (original) (raw)
Capital One is a national, brick-and-mortar bank that mixes elements of traditional banks and online-only financial institutions. While it’s best known for its rewards credit cards, it also offers attractive deposit accounts with no fees and APYs above national averages.
In the MarketWatch Guides team’s Capital One Bank review, we detail the bank’s checking accounts, savings accounts and CDs, along with its reputation and how it stacks up against some of the best banks in the U.S.
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Our Capital One Ratings
We give Capital One Bank 4.2 out of 5 stars after evaluating categories including its branch availability, account fees, interest rates and customer support. While the bank scores well across the board, its checking accounts earn the highest score.
Here’s how the company scores in each of these factors:
### Who Is Capital One Best For?
Capital One is best for someone who’s looking for high-yield deposit accounts without fees or account minimums. It can also be a good option for someone who prefers online-only banking since it doesn’t have nationwide branch access.
Capital One Overview
Capital One was founded in 1988 by Richard Fairbank, who’s currently the CEO. While it initially focused on credit cards, it later expanded into commercial and retail banking. Today, Capital One is based in McLean, Va., and is the ninth-largest bank in the United States, based on consolidated assets.
More recently, Capital One has been in the news after it announced its plan to acquire Discover Bank in February 2024. The merger is expected to be finalized in late 2024 or early 2025. Notably, Capital One combines common features of both brick-and-mortar and online-only banks. For instance, it offers some in-person banking access at physical branches while offering high interest rates and no fees on its deposit products. It also has Federal Deposit Insurance Corp. (FDIC) insurance, so deposits are safe up to the legal limit.
Pros and Cons
Pros
Capital One offers above-average APYs on its checking accounts, savings accounts and CDs.
Account holders have access to 70,000 fee-free ATMs across the country.
Capital One doesn’t have overdraft fees or account maintenance fees.
Cons
Capital One has only 272 branches, though that’s more than other primarily-online financial institutions.
Although Capital One offers high rates across its accounts, you may be able to find higher rates on checking and savings accounts at online-only banks.
Capital One Banking Products
Capital One offers several banking products, including checking accounts, savings accounts and CDs, but it doesn’t offer money market accounts. Kids (with the help of an adult) can open both a checking and savings account at Capital One.
Capital One also offers other financial products such as credit cards, auto loans and small business and commercial banking.
| Capital One Bank Account | APY* | Minimum Opening Deposit | Minimum Account Balance |
|---|---|---|---|
| 360 Checking | 0.10% | 0∣0 | 0∣0 |
| Money Teen Checking | 0.10% | 0∣0 | 0∣0 |
| 360 Performance Savings | 3.70% | 0∣0 | 0∣0 |
| Kids Savings Account | 2.50% | 0∣0 | 0∣0 |
| 360 CDs | 3.50% to 4.00% | 0∣0 | 0∣0 |
Capital One Checking Accounts
| Capital One Checking Account | Minimum Opening Deposit | Minimum Account Balance | Monthly Service Fee | Overdraft Fee | APY* |
|---|---|---|---|---|---|
| 360 Checking | 0∣0 | 0∣0 | 0∣0 | 0∣0 | 0.10% |
| Money Teen Checking | 0∣0 | 0∣0 | $0 | N/A, overdrafts typically declined | 0.10% |
*APYs accurate as of November 13, 2024
Capital One Checking Account Rating
We rate Capital One’s checking accounts 4.5 out of 5 stars. Capital One offers two checking accounts: Capital One 360 Checking and Money Teen Checking. Both of Capital One’s checking accounts provide these perks:
- Earns interest, unlike most checking accounts
- No fees
- Access to a large ATM network
- A Mastercard debit card
- Mobile banking with Zelle and mobile check deposit
Capital One Checking Account Options
The Capital One 360 Checking account earns higher-than-average interest and has no account balance minimums, no monthly maintenance fees and no foreign transaction fees. You’ll also get your first checkbook for free. Given all the perks, Capital One 360 Checking can be an excellent choice for almost anyone looking for a checking account.
Checking account holders can also choose one of Capital One’s overdraft options to protect their account. You can set up your account to:
- Auto-decline transactions
- Automatically conduct a free transfer from a Capital One savings or existing money market account
If Capital One approves a transaction that overdraws a checking account, you won’t be charged an overdraft fee.
The Money Teen Checking account is a joint checking account with a parent or legal guardian and a child aged eight or older. Adult co-owners don’t need to have a Capital One account to open a Money Teen Checking account. Instead, they can link an external bank account to their teen’s account.
While this account offers basic checking account features such as a debit card and direct deposit support, it doesn’t offer paper checks. It’s also only available online, so there’s no option for in-person account management or support.
Once a child turns 18 years old, they can choose to open a Capital One 360 Checking account and transfer their balance to that account. Otherwise, the teen account will remain open.
Pros and Cons
Pros
Interest checking: These accounts earn an APY that’s slightly higher than the national average checking rate of 0.08%, according to the FDIC.
No fees: Capital One’s checking accounts come with no account maintenance fees, foreign transaction fees or overdraft fees.
ATM access and perks: You’ll get access to 70,000 in-network ATMs nationwide, including MoneyPass and AllPoint ATMs, with locations in select Target, CVS and Walgreens stores.
Cons
Limited branch access for 360 Checking: The 360 Checking account can be opened at a branch, but because Capital One has fewer than 300 branches across nine states, this option is limited.
Online only for Money Teen Checking: This type of account can only be opened and managed online.
Capital One Savings Accounts
| Capital One Savings Account | Minimum Opening Deposit | Minimum Account Balance | Monthly Service Fee | APY* |
|---|---|---|---|---|
| 360 Performance Savings | 0∣0 | 0∣0 | $0 | 3.70% |
| Kids Savings Account | 0∣0 | 0∣0 | $0 | 2.50% |
*APYs accurate as of November 13, 2024
Capital One Savings Account Rating
We rate Capital One’s savings accounts 4.4 stars. There are two types of Capital One savings accounts: a 360 Performance Savings account and a Kids Savings Account. Both are high-yield savings accounts with no fees or minimum requirements.
Capital One Savings Account Options
The Capital One 360 Performance Savings account is a high-yield savings account with an APY that’s significantly higher than the national average savings account rate of 0.46% . This account comes with no account maintenance fees or minimum balance requirement. There’s also no minimum deposit required to open an account, though account holders need to fund their new account within 60 days.
The 360 Performance Savings account can be a great choice for those who are concerned about losing purchasing power due to inflation. However, as is the case with other high-yield savings accounts, this interest rate is variable and subject to change.
The Kids Savings Account from Capital One is a joint account for an adult and a child under 18 years old. There’s no minimum age requirement, though kids under the age of 12 have to open an account with a parent or legal guardian. Like with the teen checking account, adult co-owners don’t need to have a Capital One account to open a Kids Savings Account.
Although this account’s APY isn’t as high as the 360 Performance Savings account, it’s still more than five times the national average. Plus, it’s substantially higher than many brick-and-mortar bank’s savings account rates, such as PNC Bank’s savings account for children, S is for Savings.
Pros and Cons
Pros
High-yield savings rates: Both savings accounts offer rates that are higher than the national average.
No fees: Both accounts have no monthly maintenance fees.
No minimums: There’s no minimum account balance required to earn interest.
Open in person or online: Both savings accounts can be opened online or at a Capital One branch.
Cons
Lower rate for youth account: The Kids Savings Account has a lower APY than the 360 Performance Savings account.
Limited in-person access: Capital One only has branches in nine states, so if you don’t live near a branch, you won’t have in-person banking options.
Capital One CDs
| Capital One CD | APY* | Minimum Opening Deposit | Early Withdrawal Penalty |
|---|---|---|---|
| 6-month CD | 3.80% | $0 | 3 months’ interest |
| 1-year CD | 4.00% | $0 | 3 months’ interest |
| 18-month CD | 3.70% | $0 | 6 months’ interest |
| 2-year CD | 3.50% | $0 | 6 months’ interest |
| 30-month CD | 3.50% | $0 | 6 months’ interest |
| 3-year CD | 3.50% | $0 | 6 months’ interest |
| 4-year CD | 3.50% | $0 | 6 months’ interest |
| 5-year CD | 3.50% | $0 | 6 months’ interest |
*APYs accurate as of February 6, 2025
Capital One CD Rating
We rate Capital One CDs 4.4 out of 5 stars. The bank only offers standard, fixed-rate CDs. All of its CDs have no minimum opening deposit or minimum balance requirements.
Capital One CD Options
Terms for Capital One 360 CDs range from six months to five years. All of its terms have attractive interest rates that are at least double the national averages. However, most of its CD rates aren’t competitive with the best CD rates on the market, which tend to be over 5%.
Like with most CDs, if you withdraw your money before the maturity date, you’ll have to pay an early withdrawal penalty. The amount of the penalty depends on the length of the term:
- One-year term or less: Three months of interest
- More than one-year term: Six months of interest
Pros and Cons
Pros
Competitive rates: All of Capital One’s CDs offer APYs over 3%, but its best rates are for terms under two years.
No minimums: Capital One’s CDs don’t have a minimum opening deposit or balance requirement.
Cons
No specialty CDs: Capital One doesn’t offer bump-up CDs, no-penalty CDs or jumbo CDs.
Penalties apply: If you withdraw money from your CD before its maturity date, you’ll have to pay a penalty of three to six months’ interest.
Capital One Customer Experience
BauerFinancial, an independent bank and credit union rating firm, gives Capital One 5 out of 5 stars. Capital One also has an A+ rating and accreditation from the Better Business Bureau (BBB). However, the bank has an average customer review rating of 1.1 out of 5 stars, with most negative reviews citing poor customer service or issues with credit cards or transferring money.
“Supporting our customers is at the heart of all that we do. Capital One is reimagining banking by offering a full-service, digital-first experience that enables customers to bank on their terms – digitally or in person,” a Capital One spokesperson said. “Customers enjoy the benefit of digital features, a top-rated mobile app, and competitive products coupled with in-person support from a bank they can trust.”
Mobile App Ratings
Capital One’s mobile banking app has an average rating of 4.5 out of 5 stars on Google Play, based on over 1.5 million reviews. On the App Store, the app is rated an average of 4.8 out of 5 stars, based on more than 8 million user reviews.
J.D. Power Banking Satisfaction
In 2023, Capital One placed first in overall banking satisfaction for the fourth year in a row in the J.D. Power 2023 U.S. National Banking Satisfaction Study. That same year, Capital One earned the top spot in J.D. Power’s Online Banking Satisfaction Study and second place among national banks in J.D. Power’s Banking Mobile App Satisfaction Study.
Violation of the Bank Secrecy Act
In 2021, the Financial Crimes Enforcement Network (FinCEN) fined Capital One $390 million for “engaging in both willful and negligent violations of the Bank Secrecy Act.” FinCEN determined that Capital One failed to prevent money laundering and willfully ignored thousands of suspicious activity reports from 2008 to 2014 for its Check Cashing Group business unit. In addition to paying the penalty, Capital One closed its Check Cashing Group business and invested in an anti-money laundering program.
Capital One vs. Other Top Banks
Capital One primarily operates as an online bank, but it still maintains a physical branch presence that online banks such as Ally Bank or SoFi Bank can’t compete with. However, compared to national banks such as Wells Fargo and Chase, Capital One has far fewer branches at just 272.
But what Capital One lacks in a physical footprint, it makes up for with its high-yield accounts. Large financial institutions, such as Chase, tend to offer low interest rates on their savings accounts. In comparison, Capital One’s 360 Performance Savings account earns more than nine times the national average savings rate.
Capital One’s accounts also have no fees or minimum deposit requirements, whereas Chase, Wells Fargo and Bank of America generally charge fees unless certain requirements are met.
| Capital One | Chase | Wells Fargo | Bank of America | |
|---|---|---|---|---|
| Our rating | 4.2 | 4 | 3.8 | 4 |
| Number of branch locations | 272 | 4,700 | 4,600 | 3,800 |
| Number of ATM locations | 70,000 | 15,000 | 11,000 | 15,000 |
| Available deposit products | Checking, savings, CDs | Checking, savings, CDs | Checking, savings, CDs | Checking, savings, CDs |
| No-fee checking account option?* | Yes | Yes | Yes | Yes |
*The bank offers a low fee that is waivable if at least one requirement is met, such as a recurring direct deposit, a minimum monthly balance or a linked savings account. Requirements vary by bank.
The Bottom Line: Is Capital One Right for You?
Capital One can be a worthwhile choice for those who want to earn competitive rates on deposit accounts without paying account or overdraft fees. It offers several savings, checking and CD account options, and it has highly-rated mobile apps and customer satisfaction.
However, some customers may be disappointed by the limited number of physical branch locations. And while Capital One’s deposit account interest rates are competitive, you may be able to find higher APYs with online-only institutions.
Learn More About Capital One
See how Capital One stands out in our roundups of the best financial institutions and deposit products available today:
- #4 on Best Savings Accounts for Kids
- #5 on Best Banks and Credit Unions
- #5 on Best Savings Accounts for Teens
- #6 on Best Savings Accounts
- #6 on Best Checking Accounts
- #7 on Best Student Checking Accounts
Capital One FAQs
Capital One is considered to be a reliable bank since it’s FDIC-insured, which means deposits are backed by the federal government up to $250,000 per person, per bank and per account ownership category.
According to Capital One’s 2023 annual report, it earned $36.8 billion in net revenue in 2023 — a 7.4% increase from 2022 — and its shares were up 41%. Fitch Ratings has also affirmed Capital One as having a stable outlook.
Capital One may be a good bank for someone who’s looking for high-yield deposit accounts, no fees and no minimum account requirements. It also has highly rated online and mobile banking, according to J.D. Power.
Capital One may be a better option than Chase for someone who’s comfortable banking mostly or solely online. Capital One offers high rates across its deposit accounts, plus no fees or minimum requirements. Many of Chase’s accounts have fees, minimum requirements and low rates.
However, for someone who prioritizes branch access, Chase may be a better choice since it offers roughly 4,400 more branches than Capital One.
Review Methodology
Our team researched more than 100 of the country’s largest and most prominent financial institutions, collecting information on each provider’s account options, fees, rates, terms and customer experience. We then scored each firm based on the data points and metrics that matter most to potential customers. Read our full methodology.
Savings and money market accounts
The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
Banking experience and access
Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.
35% Savings and money market accounts
30% Checking accounts
20% Certificates of deposit
15% Banking experience and access
Savings and money market accounts
The best scores go to banks, loans and fintech companies with high interest rates and low or no fees or minimum opening deposits.
Checking accounts
High marks are given to those with multiple accounts and minimal fees, plus benefits such as reward programs and mobile check deposit.
Certificates of deposit
Top-rated financial institutions have low or no minimum opening deposits, as well as a variety of term options and specialty CDs for flexibility.
Banking experience and access
Providers that excel in this category have large branch and ATM networks and multiple checking and savings accounts, and they earn more points for offering CDs and money market accounts.
All America Bank, Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Airlines Credit Union, American Express National Bank, Apple Bank, Arvest Bank, Associated Bank, Axos Bank, Banesco Bank, Bank of America, Bank of Hope, Bank Purely, Bank5 Connect, Barclays, Bask Bank, BECU (Boeing Employees Credit Union), Bethpage Federal Credit Union, BMO, BMO Alto Bank, Bread Savings (formerly Comenity Direct), BrioDirect, Capital One Bank, CFG Bank, Charles Schwab, Charlie Financial, Chase Bank, Chime, CIBC USA, CIT Bank, Citibank, Citizens, Citizens Bank, Colorado Federal Savings Bank, Comerica Bank, Connexus Credit Union, Consumers Credit Union, Credit One Bank, Cross River Bank, Current, Customers Bank, Delta Community Credit Union, Discover Bank, East West Bank, Emigrant Direct, EverBank (formerly TIAA Bank), Federal Savings Bank, Fifth Third Bank, First Citizens Bank, First Internet Bank (of Indiana), First National Bank of America, First Tech Federal Credit Union, FNBO Direct, Frost Bank, Golden 1 Credit Union, Heritage Bank NA, HSBC, Huntington Bank, KeyBank, Lafayette Federal Credit Union, Lake Michigan Credit Union, LendingClub, Limelight Bank, Live Oak Bank, Lonestar Bank, M.Y. Safra Bank, M&T Bank, Marcus by Goldman Sachs, Mercury Bank, Merrick Bank, Michigan State University Federal Credit Union, Milli, Morgan Stanley Private Bank, Mountain America Credit Union, My eBanc, MySavingsDirect, National Bank of Kansas City, Navy Federal Credit Union, NBKC Bank, North American Savings Bank (NASB), Northpointe Bank, Patelco Credit Union, PenFed Credit Union (Pentagon Federal), PNC Bank, Popular Direct, Presidential Bank, Provident Bank, Quontic Bank, Quorum Federal Credit Union, Randolph-Brooks Federal Credit Union, Regions Bank, Ridgewood Savings Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Service Credit Union, SoFi Bank, South State Bank, Spectrum Credit Union, Spring Bank, Star One Credit Union, State Bank of Texas, State Department Federal Credit Union, State Employees’ Credit Union, Suncoast Credit Union, Sutton Bank, Synchrony Bank, Synovus Bank, TD Bank, Texas Capital Bank, Third Federal Savings & Loan, Transportation Alliance Bank (TAB Bank), Truist Bank, U.S. Bank, UFB Direct, Umpqua Bank, Upgrade, USAA Bank, USAlliance Financial, Valley National Bank, Varo Bank, Vio Bank, VyStar Credit Union, Webbank, Webster Bank, Wells Fargo, Western State Bank, Zions Bank, Zynlo Bank
_*Data accurate at time of publication
Editor’s Note: Parts of this story were auto-populated using data from Curinos, a research firm that collects data from more than 3,600 banks and credit unions. For more details on how we compile daily rate data, check out our methodology here.