Online-mostly banking
Capital One 360
Last updated:
Nov 15, 2024
Provided by
Capital One Financial Corporation
Life Admin Area
Personal finance
Capital One is one of top 10 largest banks in the United States, but it's Capital One 360 business looks different than most ā it's online banking with no regular fees and high-yields on savings.
Compared to both large established banks and neobank offerings, Capital One saves you on time and effort through consumer-friendly user experience, no annoying fees, and support for your whole household. The leading neobanks (see alternatives) don't offer joint accounts, whereas Capital One offers both joint and teen accounts. Capital One also has a very large credit card business, which can be advantageous or a distraction from savings, depending on your relationship with credit cards.
Banks in the US get a charter from the federal government or a state government. A chartered bank gets protection from the FDIC and also has regulatory requirements for stability.
Normal banks are chartered by a state or federal government, but neobanks arenāt ā they are tech platforms that partner with banks or intermediaries to offer banking services, which means there are some detailed caveats to how they manage your money.
CapitalĀ One was an insurgent bank in the early days of the Internet and through its credit card business, especially, grew a nationwide foothold.Ā Capital One 360 Banking successfully provides a wide set of services, bolstered by its credit card and business banking lines. That's how they can offer such competitive offerings, while remaining very stable.
Capital One 360 provides a balanced mix of what consumers need to access their money without worry and grow it against inflation.Ā The one part of Capital One to watch out for is their incentive to get you into their credit card business. While credit cards can be advantageous in the right hands, they also can complicate your life admin situation. Here are the key reasons we've reviewed Capital One 360...
Ally is an established online-only bank (Ally Bank) and robo-advisor platform (Ally Invest) that has long led with offering high-yield interest rates. Originally, established as a bank under General Motors, Ally was spun out after the financial crisis and became an early leader in online banking. It still has a large auto loan business.
Also reviewed on Wayshaping ->Chime isn't quite a bank ā it's an online fintech platform that provides banking services through partners. They offer high interest rates and allow limited overdrafts, but in general, because they aren't a bank, they are missing some of the services offered by a more established online bank.
Also reviewed on Wayshaping ->Varo Bank is the first fintech platform to be given a bank charter, affording it direct FDIC insurance and other bank-level regulations. While it's status as a bank can be trusted and they offer high interest rates, users have to be more hands-on with Varo because it does not allow overdrafting, and instead focuses on offering cash advances (up to $500), which takes time and costs money.
Also reviewed on Wayshaping ->American Express has best-in-class online banking, but it's limited to savings accounts and certificates of deposit if you do not already have an American Express credit card. While they often offer top interest rates, the limitations make it less accessible. Additionally, American Express doesn't provide the convenience of overdraft transfers between savings and checking.
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