Capital One is a great bank for people looking for a one-stop shop. It has competitive interest rates, particularly for its high-yield savings account, a highly-regarded checking account, CDs with a range of terms and a suite of rewards credit cards for travelers, diners and business owners.
For a full-service bank with a branch network—albeit a smaller bricks-and-mortar footprint than its biggest rivals—Capital One stands out from the pack by making banking convenient and virtually fee free, and because it has maintained a great customer service reputation.
While we’ve seen online banks that offer better returns on your deposits, those high yields can come with trade-offs such as no in-person banking. Along with a well-reviewed app and an easy-to-use website, Capital One has a network of roughly 300 locations around the U.S., and no foreign transaction fees on its credit and debit cards, making it easy to bank on your terms, wherever you are.
Great savings rates plus flexibility
Capital One 360 Performance Savings
Key Stats:
- APY: 3.9%
- No minimum opening balance or monthly maintenance fee
- Open and manage your account via web, mobile app, branch
- Set and track savings goals via online and app-based tools
- Account can be linked to a Capital One checking account
Capital One 360 Performance Savings is an easy-to-use, virtually fee-free account that gives you a competitive interest rate and the flexibility to bank in person or digitally. Its generous APY is similar to those offered by online-only banks, although Capital One has several hundred traditional branches. The unusual combination is a big reason we named this account the Best Savings Account for 2023.
The 360 Performance Savings account doesn’t have minimum balance requirements, monthly maintenance charges or overdraft fees. The APY is variable, like all savings accounts, but Capital One doesn’t have a bunch of fine print that can hamper your ability to save. For instance, you won’t have to jump through hoops like setting up direct deposit or conducting a certain number of monthly transactions to earn the advertised APY.
Aside from a generous interest rate, 360 Performance Savings makes it easier to save money with digital tools that help you establish a budget and track your financial goals and no “gotcha” fees.
No minimum checking balance or annoying fees
Capital One 360 Checking
Key stats:
- No minimum opening balance
- No monthly maintenance fee
- No overdraft fee
- No out-of-network ATM fee
- 0.1% APY interest on deposits
It isn’t just in savings where Capital One shines. The bank’s 360 Checking was also Buy Side’s top pick among checking accounts. Capital One gives customers lots of flexibility in how they bank without piling on annoying fees. Although it has a low interest rate compared with some online banks’ high-yield checking accounts, there are no minimum balance requirements or monthly maintenance charges.
Eliminating a lot of common fees helps you keep more of your cash even if you’re not earning much interest on it. There are no charges for overdrafts, out-of-network ATM usage or foreign transactions. The only common fees you might run into are outgoing wire transfer fees of up to $30, and fees of $7 and $11, respectively, for orders of 50 or 100 paper checks.
Even though you won’t get hit with overdraft fees, 360 Checking has a few options to keep you from overdrawing your account: You can have transactions simply declined if they would result in a negative balance, or you can authorize automatic, free transfers from a linked Capital One account. The bank also offers what’s essentially a grace period to bring your balance current called No-Fee Overdraft.
Wide range of CD terms and competitive yields
Capital One offers CDs with fixed terms ranging from six months to five years, which is convenient if you want to create a CD ladder with some of your savings. It also offers promotional CDs with especially generous rates from time to time, which Buy Side has highlighted in the past in our monthly roundup of the best CD rates. The early withdrawal penalty is three months’ worth of interest for CDs with one-year maturities or shorter, and six months’ worth of interest on longer CDs.
Generous credit card rewards
Capital One’s name recognition is primarily because of its credit cards, and its offerings have turned up on a number of Buy Side rankings.
Capital One Venture Rewards was Buy Side’s top overall travel rewards credit card on the strength of its generous rewards rate, sign-up bonus and simple earnings structure. Capital One Venture X Rewards was our top travel rewards card for lounge access, since cardholders get access to Priority Pass airport lounges as well as Capital One’s own network of lounges.
Capital One SavorOne Student Cash Rewards was our top student rewards card because of its great bonus categories and perks most student cards don’t offer.
Capital One SavorOne Cash Rewards was our top cash back rewards card for groceries because it offers accelerated earnings on groceries and dining, plus a generous sign-up bonus.
Rates and terms are current as of June 14, 2023.
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The advice, recommendations or rankings expressed in this article are those of the Buy Side from WSJ editorial team, and have not been reviewed or endorsed by our commercial partners.
