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The Capital One 360 Savings account is advertised as an FDIC-insured, fee-free online account with a great rate, but is it worth it?
I’ve been using this account for a few months. My experience has been mostly positive, but I’ve also found a few drawbacks.
In this post, I’ll discuss the pros and cons. If you’re thinking about opening an account for yourself, read on to find out if it’s right for you.
Why It’s Great
The 360 Savings account has several features that your local bank probably can’t match. The best feature (in my opinion) is the ability to have multiple accounts labeled for different goals. This is a great place to put your emergency fund or to save money for any of your savings goals.
Let’s look at what the account has to offer:
No Minimums and No Fees
You can open an account with $0 and it remains open with no fees even if your account balance drops to $0. No monthly fees either.
There’s absolutely no risk to open an account. You won’t be charged any fees if you don’t like it and decide not to keep your money there.
Generous APY of 0.75%
My local bank offers an APY of 0.01% for savings, and this isn’t uncommon even with big banks. Sure, 0.75% doesn’t seem like much. (And it’s not. This isn’t an investment account.) But this is a much better rate than most banks offer for simple savings.
According to the FDIC, the average National Rate for savings accounts (at the time of this writing) is 0.06%. The Capital One 360 Savings account offers a rate more than 10 times higher.
Automatic Savings Plans and Easy Transfers
Link to your checking account at any bank and set up automatic transfers to automate the savings process. I am a firm believer in automating saving and spending, and the Capital One Savings account makes it easy.
Make one-time transfers at any time from a linked bank account if you need to make additional deposits. Mobile deposits and cash deposits from Capital One ATMs are also supported.
Track Savings Goals
I absolutely love this feature and it makes reaching your savings goals so much easier. You can have up to 25 “accounts” and label each one for a different goal.
For example, you can have one for an emergency fund, one for a new car, and another for a house down payment. These are basically sub-accounts, and they’re all listed under your main account.
And the best part is the built-in calculator that helps you determine how much you need to save each month:
In the example above, I entered a goal of $1,000 for an emergency fund with an end date of six months away. According to the calculator, I need to save $107.15 to reach this goal with my current balance of $250.
The Savings Tracker shows you how close you are to meeting your goal, how many months and days are left until its reached, and how much you have left to save. It also integrates with the Automatic Savings Plan. And you can do this for up to 25 different goals.
I cannot overstate how awesome this feature is. Try it out for yourself and you’ll never go back to your old savings account.
New Customer Bonus
If you’re a new customer of Capital One 360, you’ll get a cash bonus for signing up through my referral link. Fund your account with at least $250 and $25 will be deposited into your account within about 24 hours. I’ll get $20 for referring you, so we both win!
If you already have a Capital One 360 credit card or checking account, you aren’t considered a “new customer” so you won’t be eligible for the bonus. But I would still highly recommend this account for all its other amazing features.
What’s Not So Great
It’s no secret that I love my 360 Savings account, but there are a few drawbacks you should be aware. Here’s a rundown of the not-so-great:
- The account is 100% online, which means you can’t open a new account at a branch. If you like to bank in person, this might not be the right account for you. You can’t make deposits or withdrawals at branches either, except for using the ATMs.
- There was a long turnaround time on my initial deposit. If you’re anxious to start tracking your savings goals, be aware that it took over a week for my initial deposit to hit my account. You’ll be required to verify your outside bank account first which can take a few days. Subsequent deposits have been much faster (2-3 business days).
Who Should Open a Capital One 360 Savings Account?
If you’re looking for a place to save for short-term goals or an emergency fund, the Capital One 360 Savings account is a great idea. Here’s a summary of its benefits:
- No minimum balance and no fees
- APY of 0.75%
- Automatic savings plans and easy transfers
- Savings goal tracking
- New customer bonus
Click here to open your own account today. Remember, there’s nothing to lose and you’ll get a new customer bonus of $25 if you fund your account with at least $250.
What’s your experience with the Capital One 360 Savings account? Leave a comment below and let us know!