Sunday, October 1st
2023 Online Savings Account Reviews
Capital One
- Fixed APY of 3.75% on savings
- APY range of 4.10% to 4.30% for CDs
- APY of 0.30% for kids savings
- Top-rated mobile app
- Physical branches available
- No overdraft fees
- Cash deposits available at CVS
- "A+" rating and accreditation from the BBB
As the sixth largest commercial bank in the United States, Capital One is a big name in finance. On top of offering online services, Capital One has numerous branches and ATMs, making it easy to access any necessary services.
Friendly banking experience
Capital One offers a consumer-friendly banking experience without any monthly services fees or overdraft charges and guaranteed FDIC insurance. Capital One provides competitive savings rates in the market, with an interest rate of 3.75% APY and no minimum deposit. Additionally, the Capital One CD offers good rates compared to other banks and credit unions. It has no minimum balance required and offers penalty-free early withdrawals. The bank also offers a checking account that pays interest and a children's savings account option, which is a standout feature.
High APY options across the board
Getting started with saving at Capital One is easy. You can choose between three savings accounts: the 360 Performance Savings account, the 360 CDs account, and for the parents who want to start saving early, the Kids Savings Account. You can open a 360 Performance Savings account quickly and easily. It takes approximately 5 minutes to get started and start earning a fixed APY of 3.75% no matter your account balance. As for the 360 CDs, there are three commitment options: 1 year, 2 years, and 5 years. The APYs for the CDs range from 4.10% to 4.30%, which is highly competitive for a bank with brick-and-mortar overheads. The highest APY can be earned on the 2-year commitment. Additionally, there is no minimum balance needed to open a 360 CDs account.
Saving for the future
If you've got some kiddos you want to start a savings account for, Capital One has you covered. Like the 360 Performance Savings, there are no fees associated with the Kids Savings Account. You can easily link the child accounts to your existing accounts and open multiple accounts to have savings for each child. The APY for the Kids Savings Account is a fixed 0.30%.
High-rated mobile experience
In terms of its mobile reputation, Capital One provides high-rated services. The Capital One mobile app is highly rated by both iOS and Android users. The app has a 4.9-star rating out of five on the Apple Store and an equally impressive 4.6-star rating on Google Play. Additionally, Capital One offers virtual assistance through Eno, Capital One's virtual assistant. Customers love the user interface with the Capital One app no matter what device they're on, which is fantastic for an online banking institution.
Physical branches available in some states
While many customers like online-only features, some still like to go into a physical branch to have their questions answered. Luckily, Capital One offers the best of both worlds. The bank has physical locations in select states called Capital One Cafes, which offer hybrid offices where customers can explore banking options, speak to a representative, and enjoy free Wi-Fi, beverages, and snacks. Or, if customers don't want to look for a brick-and-mortar location, they can contact Capital One's responsive customer service team online or on the phone anytime.
No overdraft fees
One of the standout features of Capital One is its overdraft fees policy. The bank does not charge any overdraft fees or non-sufficient funds fees, making it an excellent choice for customers who might be likely to overdraft. This policy sets Capital One apart from other banks that still charge overdraft fees, with some as high as $37 per overdraft.
Cash deposits available
Since branches aren't all over, withdrawals with Capital One are completed through ATMs in partner networks. Capital One works with both the Allpoint and MoneyPass networks. However, customers might need to know that these networks do not accept cash deposits. If you're worried about moving cash, you can still do that with Capital One. Instead of going to a bank branch, you can find a local CVS. While you do need a Capital One checking account to complete the transaction, customers can deposit up to $999 a day and up to 5 transactions a month by using the Capital One mobile app and giving cash to the CVS teller.
High ratings from pros
In terms of customer feedback and ratings, there's a lot of information out there on Capital One. The bank has a stellar "A+" rating and accreditation with the Better Business Bureau, and an average of 3.5-stars from customers. Additionally, the company is highly rated by banking specialists like Bankrate and Nerdwallet where Capital One has earned an average of 4.6 stars out of 5. Happy customers praise the options at Capital One (though usually with specific mention of their credit cards). And, customers are very happy with the high APY rates. While some other customers aren't as thrilled with the speed of transfers or the APR rates on credit cards, not many customers had complaints about the savings accounts.
Top major bank for savings
As one of the options for a major bank in this review, Capital One stands out. The APYs are competitive with some of the top options in this review, and Capital One is also a fantastic pick for those seeking a traditional "major" bank with no monthly service fees or overdraft charges, no minimum deposit required, and options for kids. On top of those positives, the bank's mobile app is highly rated, and the bank has high ratings from both customers and banking specialists, making Capital One the #1 choice among big-name banks for your next savings account.
More Online Savings Account Reviews
Where is the Best Place to Open an Online Savings Account?
Feeling let down by your current bank and looking to spruce up your finances? Or maybe you're about to open your very first savings account and want to make sure you're getting all the bells and whistles? Deciding who to trust with your savings is a big deal and it's crucial for your financial wellbeing. With so many banks and online institutions, it can be overwhelming to hunt for the best interest options or rewards. Switching banks, or opening a new savings account, can feel like a lot.
But first, some background: a savings account is a type of bank account that is specifically designed for saving money. It's an account that you can deposit money into and earn interest on the balance. Unlike a checking account, which is used for everyday transactions like paying bills or buying groceries, a savings account is intended for long-term saving.
Online Savings Account FAQ
Continued from above...
Many people use savings accounts to set aside money for things like a down payment on a house, a new car, or an emergency fund. One of the biggest benefits of a savings account is that it can help you build wealth over time. As you continue to save money, the interest earned on your balance can compound, meaning you earn interest on both the money you deposit and the interest you earn. Over time, this can add up significantly and help you achieve your financial goals. Additionally, savings accounts are generally considered to be low-risk investments, making them a great option for people who are risk-averse or new to investing.
Banks and financial institutions offer various types of savings accounts that cater to different needs and goals. Some common types of savings accounts include a basic savings account, which is a standard account that usually has a low minimum balance requirement and earns interest on the balance. High-yield savings accounts are another option. These typically offer a higher interest rate than basic savings accounts but may require a higher minimum balance in the account.
Money market accounts are similar to savings accounts but often offer higher interest rates and allow you to write a limited number of checks per month. Certificates of deposit (CDs) are time-bound accounts that require you to leave your money in the account for a fixed period in exchange for a higher interest rate. Individual Retirement Accounts (IRAs) are specialized accounts designed for retirement savings and offering tax benefits.
So, how do you find the best savings account for your needs? There are a lot of factors to consider for account types and which institution can offer you the best service overall. If you're not sure where to start, you can check out this list that should help you narrow down your options:
- Fees: While many online savings accounts offer accounts for no fees, there are just as many that do require minimums, or at least that customers meet a daily balance minimum to avoid fees. Keep in mind how much you're willing to pay each month (and what you need to do to keep an account free of charge) as you look over savings account options.
- Customer Service: Customer service is key, especially when your money is involved. Looking at feedback for customer service at different banks may help determine who you want to support your financial security.
- APYs: One of the biggest differences in savings account options is how much you'll make in APYs. Some APYs are fixed, while others depend on your account balance. Keep an eye on how much you'll be earning for your money when you choose your next savings account.
- Savings Options: General savings accounts aren't the only options to increase your savings. With CDs and Money Market accounts, many banks offer a variety of places to improve your savings. Knowing what kind of account you want will help you decide where to start banking next. Not all banks offer the same benefits or account types.
To make opening your next savings account as easy as 1, 2, 3, Top Consumer Reviews has evaluated and ranked the most popular options on the market. We hope this will help you decide which financial institution is the best place to keep track of your savings.
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