Capital One Review

(December 2024)

Capital-One-Review

In This Article

Our Verdict

Capital-One

Capital One is one of the largest banks in the United States based on deposits and assets, headquartered in McLean, Virginia, United States. You may find Capital One suitable for you if you’re seeking a financial institution dedicated to credit cards, banking, auto loans, and savings accounts. 

You may also find the company appealing especially if you’re a consumer, operate a small business, or you’re a commercial client. Keep in mind, however, that Capital One suffers from the “limited number of branches” syndrome.

Notwithstanding, you can enjoy free banking with competitive interest rates when you bank with Capital One.

As you research this financial institution, take note of the key features, strengths, and areas for improvement of Capital One’s services, and see how you can leverage valuable insights for your needs.

In addition, here are a few other pertinent details:

Capital One Financial Corp
1680 Capital One Drive
McLean, VA 22102-3491
United States.

Pros

  • Requires no minimum account balance.
  • Offers highly responsive mobile app—as vetted by customers.
  • Takes no fee for overdraft.
  • Charges no maintenance fees.
  • Has over 70,000 fee-free ATMs.

Cons

  • Compounds interest every month on savings.
  • Has an inadequate number of branches.
  • Has no more money market accounts for individuals banking with them for the first time.

Who Capital One Is Best For

Leverage Capital One’s financial offerings if:

  • You prefer the no annual fee options for your credit card needs.
  • You need robust online and mobile banking services, especially if you prefer managing your finances digitally.
  • You’re on the verge of building your credit history.

Who Capital One Isn’t Right For

Consider Capital One’s alternatives if:

  • Your primarily use money market accounts.
  • You don’t like out-of-network ATM fees.
  • You prefer in-person banking with access to physical branches.

What Capital One Offers

If you’re seeking a financial institution that offers different banking solutions, investing, and wealth management services, Capital One has got you covered. You can get major products that meet your individual and business needs. Here’s the breakdown of each of Capital One’s main products.

Credit Cards

Irrespective of your needs and lifestyles, Capital One offers a variety of credit cards that meet different demands. With Capital One’s credit cards, you can enjoy features such as cash-back rewards, travel rewards, and low introductory APRs. You can also enjoy purchase protection and extended warranty coverage.

Banking Solutions

Know that Capital One provides traditional banking services including checking accounts, savings accounts, and certificates of deposit (CDs). The best part…you’re enjoying features like no monthly fees, no minimum balance requirements, mobile banking apps, online bill pay, and access to a large network of ATMs.

Other Banking Solutions

Beyond traditional banking, you can enjoy conventional banking solutions that deal with certain aspects including capital markets, commercial lending, corporate card, depository services, trade credit, treasury management, and more.

Loans

Are you seeking a loan to fund your next car or house project? Capital One has got you covered by providing various types of loans, including personal loans, auto loans, and home loans (mortgages). With a personal loan, you can consolidate debt, improve your home, or take care of unexpected expenses. The auto loan helps you finance the purchase of a new or used vehicle, while home loans assist you with buying a home or refinancing an existing mortgage.

Small Business Solutions

If you’re seeking services specifically designed for small businesses, you should probably make Capital One your ally. With this bank, you get features such as business credit cards with rewards tailored to business spending, business checking accounts, merchant services, and lending options such as business lines of credit or loans.

Investing and Wealth Management

Through Capital One, you can access investment products and services, including brokerage accounts, retirement accounts (such as IRAs), and managed portfolios. The company’s investment options include stocks, bonds, mutual funds, and exchange-traded funds (ETFs). With their tools and resources, you can plan for your financial goals and manage your investment effectively.

Capital One Details

Capital-One-Details

Credit Cards

Note that Capital One allows you to choose from its pool of credit cards—depending on your needs. Among the popular cards the company offers is the Platinum Mastercard ($0 annual fees). You also have the Venture Rewards which allows you to get unlimited 2 miles per dollar on every purchase, and 5 miles for every dollar you spend on hotels and rental cars through Capital One Travel.  And then the Quicksilver Rewards that allows you to earn unlimited 1.5% cash back any day you make purchases.

Banking Solutions

Check out a quick breakdown of Capital One’s banking solutions and see which one is best for you.

Checking or 360 Account:

  • Charges no fees on foreign transactions.
  • Requires no minimum balance.
  • Gives little interest rate on balances.
  • Takes no maintenance fees.
  • Requires no least deposit for account opening.
  • Offers remote check deposit.
  • Charges no fees for overdraft transfer for its savings account.

Business Savings Account

  • Waives the $3 monthly fee if you maintain a minimum balance of $300.
  • Gives you promotional rates during the initial six months of opening your account.
  • Allows up to six free withdrawals per monthly statement cycle.
  • Provides a single option for business saving accounts.

Business Checking Options

Capital One provides two categories of business checking options which include Basic Checking and Enhanced Checking. For the Basic Checking, you:
  • Enjoy a waiver on the $15 monthly service fee, if you maintain an average balance of $2,000 or more over the prior 30 or 90 days.
  • Get cash deposits up to $5,000 per month at no charge; $1 fee per $1,000 deposited thereafter.
  • Takes incoming domestic wire fee of $15; outgoing wire fee of $25.
For the Enhanced Checking, you:
  • Pay no fees or limits on monthly transactions.
  • Pay no fee for cash deposits, but limited to under $40,000 per month.
  • Enjoy a waiver on the $35 monthly service fee, if you maintain an average balance of $25,000 or more over the prior 30 or 90 days.

Loans

Whether you want to pre-qualify for a mortgage loan, auto loan, personal loan, or refinancing your current loan, Capital One has that covered for you. You must ensure you have a good credit score of about 670 or above so you can qualify for loans that have competitive interest rates. To know your loan rates and terms, get in touch with the bank, and undergo the pro-approval and pre-qualification processes. This way, you can consider the necessary things to get qualified.

Where Capital One Stands Out

Where-Capital-One-Stands-Out

No Minimum Account Balance

Capital One stands out with its no minimum account balance requirement, particularly in its checking and savings accounts. This feature frees you of the burden of maintaining a minimum balance, making banking more accessible. Whether opening a checking account for everyday expenses or a savings account for future goals, you can enjoy the flexibility and convenience of managing your finances without worrying about meeting balance requirements.

Over 70,000 ATMs

Another distinguishing factor is its extensive ATM network, offering you access to over 70,000 fee-free automated teller machines. If you hold an account with this bank, you can perform banking transactions with each, covering services such as cash withdrawals, checking of balances, and many others.

Responsive Mobile App

Capital One’s mobile app stands out for its user-friendly interface, robust features, and seamless functionality, offering a convenient way to manage your finances on the go. With the app, you can enjoy a comprehensive suite of banking services, allowing you to check account balances, view transaction history, transfer funds, pay bills, deposit checks remotely, and set up account alerts—all from the palm of your hand.

Where Capital One Falls Short

No Money Market Accounts

Despite being a major player in the banking industry, Capital One is known for not offering traditional money market accounts. You may find this bank inconvenient if you’re seeking higher yields and liquidity.

Limited Branch Network

If you prefer in-person banking transactions, you may find Capital One lacking as the bank has fewer branch locations. It primarily operates as an online and digital bank, with a focus on providing convenient and accessible banking services through its website and mobile app.

Alternatives to Capital One

Chase Bank

Consider Chase Bank if you need convenience for in-person banking needs along with a vast network of branches and ATMs across the United States. You get various financial products and services, including credit cards, savings accounts, checking accounts, mortgages, and investment options. Also, the bank gives you $1,000 if you open a private client account that begins at $150,000. The Chase mobile app provides you with robust features for managing accounts, making transactions, and accessing customer support.

However, be aware that Chase is known for charging fees on various services, including monthly maintenance fees on some accounts and overdraft fees. Compare your options and know what works for you.

Bank of America

Similar to Chase, Bank of America has a widespread network of branches and ATMs, giving you access to their services across the country. The bank offers a wide range of financial products, including banking, credit cards, loans, investments, and wealth management services.

Note that the bank has a common weakness, similar to other large banks, which include various fees for services, including monthly maintenance fees and out-of-network ATM fees.

Citibank

Choose Citibank if you need a robust suite of financial services with a vast network spanning over 160 countries. With this bank, you get access to diverse products including checking and savings accounts, credit cards, mortgages, and investment options.

However, Citibank has faced criticism for occasional customer service issues and regulatory controversies impacting its reputation. Despite this shortfall, Citibank has become a formidable player in the banking industry.

Ally Bank

Understand that Ally Bank offers high-yield savings accounts and CDs with competitive interest rates, making it attractive for savers. You don’t have to pay monthly maintenance fees on its accounts. You also get to leverage its user-friendly digital platforms that offer a wide range of features for managing accounts, making transactions, and accessing customer support.

Be aware that Ally Bank operates entirely online, which may be a disadvantage for customers who prefer in-person banking services. So, check yourself and see if this is the right bank for you.

Wells Fargo

Choose Wells Fargo if you need a bank with a long history in the banking industry that has grown to become one of the “Big Four” banks in the U.S.

Like many modern banks, you can access online and mobile banking services through Wells Fargo. You can pay your bills, get brokerage and wealth management services, and participate in corporate and commercial banking services.

>>>GET SMARTER: Chase Review

Customer Reviews

Traveling back in time, sometime in December 2022, in a study by J.D Power, Capital One ranked highest among nine major banks, with an overall satisfaction score of 694. That was an incredible performance by the company.

On Trustpilot, Capital One performs very low with 1.3 stars out of every 5 reviews. Meanwhile, Bankrate thinks differently about Capital One giving the company a 4.8-star rating—for excellent service delivery. 

Given all these differing opinions, your financial goals and preferences come first. So, check and see if this company aligns with what you seek.

Pro Tips

Capital-One-pro-tips
  • Take advantage of Capital One’s user-friendly online and mobile banking platforms to manage your accounts, make transactions, and track your finances conveniently.
  • Go green and opt for paperless statements to reduce clutter and receive account statements electronically.
  • Take advantage of Capital One’s financial education resources, including articles, videos, and tools, to enhance your financial literacy and make informed decisions about your money management.
  • Enable account alerts to stay informed about account balances, transactions, and payment due dates, helping you stay on top of your finances and avoid overdrafts or missed payments.
  • Take advantage of rewards programs and maximize your benefits by understanding the rewards structure, earning opportunities, and redemption options available.
  • Monitor your credit score through Capital One’s CreditWise tool to track changes and identify opportunities to improve your creditworthiness.
  • Protect your accounts by using strong, unique passwords, enabling two-factor authentication, and being cautious of phishing attempts or suspicious emails claiming to be from Capital One.
  • Familiarize yourself with Capital One’s fee schedule to avoid unexpected charges.
  • Explore Capital One’s savings account options, including high-yield savings accounts and CDs, to maximize your savings potential and earn competitive interest rates on your deposits.

Recap

Capital One stands as a leading force in the financial services industry, offering innovative digital banking solutions, competitive rates, and a diverse range of products tailored to meet your needs, whether you’re operating as an individual, a business, or a commercial client.

While its digital convenience and fee-conscious approach appeal to many, it may not be the ideal choice for you if you prioritize extensive in-person banking services or have highly specialized financial needs.

Nevertheless, Capital One’s commitment to customer satisfaction, by providing over 70,000 fee-free ATMs, $0 maintenance fees, $0 minimum account balance, fee-free transactions, financial education, and a responsive mobile app, solidifies its position as a prominent player in the market.

Related Articles

Become a

S'witty Kiwi Credit Insider!

Get the latest credit tips and hacks in your inbox!