Capital One Personal Banking: Checking Accounts
Capital One is a household name in much of the United States, largely due to their 950+ branches and
2000+ ATMs. Their assets and total holdings also make them the eighth largest bank in the country, with
services also provided in Canada and the United Kingdom.
Featuring a vast array of banking products, Capital One offers an account that is right-sized for most
people. Their widespread brick-and-mortar presence also provides easy access to customers who feel
that face-to-face interaction is an important component of selecting a bank; although, they are more
limited in their geographic spread than the largest national banks (Bank of America, Wells Fargo,
JP Morgan Chase, and Citigroup). Nonetheless, thanks to their wide line of credit and investment products,
they have the ability to serve a wider range of functions than many small banks.
Online banking also comes standard, providing account holders with mobile check deposits, account
statements and transfers, and more. Reward points (if applicable) can also be managed through the
online portal; users can redeem points for statement credits, cash, gift cards, travel and more.
Capital One offers four different checking options to serve a variety of customers. They are:
Rewards Checking
Minimum to Open: $50
Monthly Fee: $9 per month
The basic level of Capital One’s checking products, Rewards Checking offers one (x1) reward point for
every purchase or payment made with your card. New account holders also receive a 5000 point bonus,
simply for opening the account, along with a 1000 point bonus on the account’s first anniversary. While
this level of reward may seem insignificant, it’s nice to have points rack up for standard transactions.
The Capital One website even offers a tool to estimate how many points you can earn in a year through
everyday banking. As for the monthly fee, this will be waived if the account holder maintains a balance
of at least $300 or has monthly direct deposits totaling at least $250. The minimum deposit to open the
account is $50 and new account holders typically have a grace period of 30-60 days before the monthly
fee is assessed, providing time to arrange a direct deposit or balance transfer.
Premier Rewards Checking
Minimum to Open: $50
Monthly Fee: $14.95
The biggest advantage of Premier Rewards Checking is that account holders receive two (x2) reward
points for every purchase or payment made with the card. New account holders also receive double the
sign-up bonus, accruing a whopping 10000 point bonus for signing up and 2000 points on the account’s
first anniversary. Similar to the regular Rewards Checking product, account holders can avoid monthly
fees by maintaining a minimum balance of $1500, having $3000 in combined Capital One balances, or by
having monthly direct deposits of at least $1000.
High-Yield Checking
Minimum to Open: $500
Minimum Balance: $5000 combined balance (between all accounts)
The highest tier of Capital One checking accounts, the High-Yield Checking product is for individuals who
maintain a significant account balance with Capital One (typically in multiple accounts). With a heftier
minimum to open and a substantial $5000 combined balance requirement, this checking account is not
for everyone; however, for those who meet the requirements, this product can definitely pay off. The
High-Yield account offers a .4% interest rate for balances up to $100,000 – higher than most standard
savings accounts, there are definite benefits to having an account that yields interest with no
withdrawal penalties for regular use (i.e. six withdrawal limit per month, standard on most savings
accounts). The only downside is that if the minimum balance is not maintained, the account may be
converted or closed at the bank’s discretion. This account does come with a few other perks, like free
paper checks, which may sweeten the deal for some users.
Capital One 360
Minimum to Open: $0
Monthly Fee: $0
After Capital One acquired ING Direct in 2012, they converted the service into their Capital One 360
product. An account with great versatility and flexibility for users, the 360 Checking Account offers user
more than the standard online banking platform. For example, Person2Person Payments allows users to
send money directly to another individual’s bank account. Additionally, with free access to more than
38,000 Allpoint ATMs (in addition to Capital One’s 2000+ ATMs), your money is never out of reach. The
account also pairs well with a Capital One 360 Savings account, which has an exceptionally high interest
yield (typically around .9%). The Checking account also yields interest at variable rates depending on the
account balance, so users can rest assured that their money is always growing.
Fees & Service Charges
Like any financial institution, Capital One has a schedule of fees and charges that are associated with
their services, outside of the base fees for their accounts. Their overdraft and non-sufficient fund (NSF)
fees are higher than many community and national banks, ringing in at $35. An ATM fee ($2 + the ATM
owner’s fee) applies to non-Capital One ATMs. Other standard fees include stop payments, which incur a
$35 charge per request.
Pros
- Multi-functional online banking portal
- Wide array of products that allow each account holder to “right-size” their own finances
- High market penetration in select geographic areas
- Higher interest than at competitors
Cons
- High fees for overdraft and NSF charges
- Absent or low penetration in some US markets
Capital One Checking Accounts Review Summary
Capital One, much like its other national banking brethren, is a financially solid company with a large
volume of assets. They offer a vast number of great products that can be catered to just about any
individual’s banking needs. As long as there is a branch near you (or you’re comfortable with strictly
online banking), you can take advantage of checking accounts that yield rewards or interest with low or
no monthly fees.
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