Yesterday, Capital One raised the rate on its 360 Money Market by 15 bps to 1.75% APY on balances of $10k+. The APY for balances below $10k remains at 0.85%.
|1.75*%||$10k||-||Capital One||360 Money Market|
|OTHER TIERS: 0.85% → Up to $10k|
Capital One is the latest of the large internet banks to raise their savings or money market rate to 1.75% APY. Several other large internet banks have already raised their savings account rates to 1.75% APY. These include Discover, Ally, American Express, Barclays and Synchrony. So Capital One is a little behind.
The 360 Money Market has no monthly service charge, no-minimum opening deposit, or minimum balance requirement. The account does not offer check writing or debit cards. An ATM card (a 360 Money Market card) is available, but only by request. It’s not automatically issued.
Capital One launched the 360 Money Market Account in March 2016 with a competitive 1.00% APY. That rate held until June 2017 when the rate began to rise as internet banks finally began to respond to the Fed rate hikes. In the past year, a total of 75 bps has been added in seven rate increases.
Many thanks to DA reader, Maecl, for his Forum post about Capital One's rate hike.
Capability to Add Beneficiary Designations Is Coming
UPDATE 7/12/18: Please refer to this post for the details of Capital One's new beneficiary policy.
The main issue with Capital One 360 accounts has been Capital One’s refusal to allow beneficiary designations (i.e. POD or ITF) to accounts. This issue existed at ING Direct long before ING Direct was acquired by Capital One. I have good news to report. I was told by a Capital One representative that this policy is changing as of today. Capital One will allow up to 10 beneficiaries per account. Initially, Capital One will provide a form that must be filled out. The representative wasn’t able to access the form, but he said the form should be available on Capital One’s website today. I’ll publish another blog post when I have the details.
360 Savings Account
Capital One’s 360 Savings Account has been lagging the competition for awhile now. Its rate continues to be 1.00% APY for all balances. The last rate hike was in December when the rate increased from 0.75% to 1.00% APY. Capital One appears to be focusing on keeping 360 Money Market competitive instead of the 360 Savings Account. Unlike the Money Market, the Savings Account has no rate tiers. All balances qualify for the top rate.
Since checks can’t be written from the 360 Money Market, I consider this to be more like a savings account. In terms of features, the only difference between the 360 Money Market and the 360 Savings Account is the balance tiers.
The 360 CD rates remained the same. The last rate hike occurred on June 22nd. For the most part, Capital One has been keeping its 360 CDs competitive. Most of the 360 CD rates fall in the mid range for internet bank CDs. Please see my last Capital One 360 CD review for more details on rates and features.
Headquartered in McLean, Virginia, Capital One describes itself as “a diversified bank that offers a broad array of financial products and services to consumers, small businesses and commercial clients.” Any U.S. citizen or lawful permanent resident, 18 years or older, with a U.S. physical address or a military address (APO or FPO) and a valid Social Security number, can open an account at Capital One.
Opening a 360 Money Market account can only be done online, and must be funded from a personal checking account.
According to the 360 Money Market Disclosure,
To get started, you’ll need to "link" your Money Market account to your personal (non-business) checking account at another U.S. chartered bank (this is known as your Linked Account).
If you already have an account with us at the time you open your 360 Money Market account, your existing Linked Account(s) will also be linked to your 360 Money Market account.
With assets in excess of $289 billion, Capital One is currently the ninth largest bank in the country.
Capital One (FDIC Certificate # 4297) has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 3.24% (excellent), based on March 31, 2018 data. In the past year, Capital One has increased its total non-brokered deposits by $9.43 billion, an above average annual growth rate of 4.33%. Please refer to our financial overview of Capital One for more details.
Capital One has both a large branch network and a large internet banking unit. The internet banking unit used to operate as Capital One 360. In 2012, Capital One acquired the internet bank, ING Direct, and in 2013, ING Direct was converted into Capital One 360.
Capital One 360 had operated as a subsidiary of Capital One Financial Corporation, but that ended last year. Capital One 360 no longer exists as a separate entity. It’s now under Capital One. All of the Capital One 360 products still exist with the same names as before, but they’re now offered from the CapitalOne.com website. CapitalOne360.com now forwards visitors to CapitalOne.com.
How the 360 Money Market Compares
When compared to the 219 Savings Accounts and 188 Money Market Accounts tracked by DepositAccounts.com that are available nationally and have no small maximum balances, 13 savings accounts and four money market accounts have higher rates than the 360 Money Market Account.
|Interest Rate||Account Name||Credit Union/Bank|
|2.05% APY||eOne Savings - New Accounts ($100 min to open)||Salem Five Direct|
|2.01% APY||eMoney Market - New Money Promo ($100 min to open)||Virtual Bank|
|2.00% APY||Online Savings Account ($5k min)||Citizens Access|
|1.75% APY||360 Money Market ($10k min)||Capital One|
The above rates are accurate as of 7/11/2018.