Capital One 360 Savings Review - Online Savers Banking

Non-Traditional Banking with Capital One 360 Savings [Review]


Interest rates - (as of 9/15/2014)- 0.75% APY


1. No fees and no minimums
2. Free transfers between accounts including outside linked (i.e. Chase, Wells Fargo, etc.)
3. Currently they are offering a sign-up bonus.
4. Customer Service - 7 days a week 8AM to 8PM speak to a live U.S. person. (The few times that I've had to call them, my issues were resolved quickly via phone support.)


1. Takes 2 business days for transfers to be completed.
2. Deposited funds from outside Capital One accounts are subject to ten business day hold before it can be withdrawn (however interest is still being accrued on that balance).

I've been a customer of Capital One 360 (formerly known as ING Direct Savings) for over nine years now since 2005. In it's hay day it was offering upwards toward 5.00% APY (annual percentage yield). Now due to a low federal interest rate environment, the interest rate fluctuates from 0.40% to 1.00% APY. Quite frankly, the main reason that I am still with them is because their site is very easy to use, I rarely have issues and if they arise they are resolved quickly via their 7 days a week phone support. They also offer higher interest rates than the traditional savings accounts.

As we are all well aware, traditional savings account such as Chase, Bank of America, and Wells Fargo offer minimal if any interest on the balance you hold with them. For example, my Chase Plus Savings account yield a paltry 0.03% APY. This means for every $1,000 I deposit with them, I will earn approximately 30 cents of interest a year. While there are definitely better interest yields out there in terms of bonds, stocks, and mutual funds, for emergency funds and cash you may need within six months, those investments might not be the best place to put your money.

We want a interest yielding vehicle that is liquid like a savings/checking, but has interest yields higher than the traditional savings. At first thought you might consider CDs. Certificate of deposits are good alternatives, but typically you are locked in to having to hold the balance for a couple months at the very least.

Enter in the online banking savings account. These companies are able to offer higher interest rates because they don't have a brick and mortar operation. Their costs are lower and therefore they are able to pass on their savings to you. Now you might wonder, if they don't have a branch, how is it that you can withdraw from the account or even make a deposit?

For starters you can link your traditional banking account to the Capital One 360 via ACH. After that you can easily send money for free to and from the accounts online. If you prefer, you can also call their 24/7 access line at 1-888-464-7868 to make a withdrawal or deposit. They also have live phone support 7 days a week from 8AM to 8PM. From my personal experience, each time I've had to call them either because I forgot my password or I needed to make deposit, they were absolutely professional, cordial, and quick in resolving my issue.

What would prevent you from opening up a Capital One 360 savings?
Transferring money can take 2 business days to be completed. However, if you have other Capital One Bank accounts those transfers are available immediately. For all other accounts, there is also a ten day business day hold on your funds after which they will be available for withdrawal. In other words, don't expect to pay someone tomorrow on the funds your deposited today.

In accordance to federal regulations and consistent with all other savings accounts, you are allowed a limit of six withdrawals per calender month. However, right now if you are referred by me and you open a 360 Savings account you will receive a $25 bonus! Best of all Capital One 360 Savings has no fees and no minimums. All of the money is FDIC insured up to $250,000 per depositor just like all traditional banks.

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