Capital One 360 Money Market Account
Capital One 360 offers a robust online money market account providing higher interest earnings along with check-writing ability and debit card access. This allows customers to enjoy money market yields while still being able to withdraw or spend funds as needed for both short and long-term savings goals.
Below we’ll examine the Capital One 360 money market’s interest rates, key features, minimum balance requirements, fees, customer reviews, and how it compares to alternatives. With strong digital tools, convenient access, and competitive returns, the Capital One 360 money market stands out as a top choice online.
Overview of Capital One 360 Money Market Accounts
The Capital One 360 Performance Money Market Account provides an ideal blend of high interest earnings and account flexibility:
- Competitive interest rates significantly higher than traditional savings accounts
- FDIC insured up to $250,000 for account security
- No monthly fees or minimum balance requirements
- Unlimited check-writing and debit card convenience
- Easy online and mobile transfers between Capital One accounts
- Ability to schedule recurring or future-dated transfers
- Integrates with external accounts for easy money movement
Handsome returns combine with robust features for reliable access to deposited funds when needed.
How the Capital One 360 Money Market Compares
The Capital One 360 money market distinguishes itself from other options:
Vs Savings Accounts
- Much higher interest rates than basic savings accounts
- Maintains liquidity with debit card access
- Interest rates competitive with short-term CDs
- Avoid CD early withdrawal penalties if money needed
Vs Checking Accounts
- Significantly higher interest earnings
- Lower risks of overdraft fees impacting balances
Vs Other Money Markets
- Strong digital experience and mobile app capabilities
- No monthly fees or minimums create accessibility
Offering uniquely high yields with premium digital convenience makes the Capital One 360 money market an attractive catch-all cash management account.
Interest Rates and Yields
As an online bank, Capital One 360 offers interest rates on money markets far exceeding national averages. Current promotional rates as of February 2023 include:
- 0.70% APY on balances up to $49,999
- 1.90% APY on balances from $50,000 to $99,999
- 2.00% APY on balances of $100,000+
These yields represent 5 to 10 times higher earnings relative to average brick-and-mortar bank money market rates. Capital One 360 ranks among the top online bank rates.
Opening a Capital One 360 Money Market Account
Opening a Capital One 360 money market only takes a few minutes:
- Visit the Capital One 360 website or use the mobile app
- Click “Open Account” and select the money market option
- Provide personal details like name, address, date of birth
- Confirm acceptance of disclosures and truth of application
- Fund account with initial deposit amount from linked bank account
- If applying in app, take photo of driver’s license for identity verification
Then you can immediately begin earning high yields on your deposited funds. Manage the new money market through online banking or mobile app access.
Key Features and Benefits
The Capital One 360 money market provides robust capabilities:
- Mobile app and web access – Manage accounts digitally 24/7. Deposit checks remotely. Set up transfers.
- FDIC insurance – Balances insured up to $250,000 in case of bank failure.
- No monthly fees – No minimum balance or transaction fees.
- Unlimited withdrawals – No limits on transfers out or withdrawals.
- Debit card – Allows using account like a checking account.
- Checkbook access – Unlimited no-fee checks to pay bills or make withdrawals.
- Overdraft protection – Link to Capital One checking to backstop overdrafts.
- Recurring transfers – Schedule automatic future or recurring withdrawals.
Robust features create money market account convenience without sacrificing earnings.
Minimum Balances and Deposit Requirements
A key benefit of the Capital One 360 money market is no minimum balance requirements. Other features include:
- No minimum opening deposit. Can open with any amount.
- No minimum account balance required to avoid monthly fees.
- Deposit checks remotely via mobile app with no minimum check amount.
- Withdraw any amount at any time. No maximum withdrawals.
- Interest paid on all balance tiers – no minimum to earn interest.
The flexibility and accessibility provided makes the Capital One 360 money market ideal for customers at all savings levels.
Fees Associated With the Account
The Capital One 360 money market shines when it comes to low fees:
- No monthly maintenance fees
- No minimum balance fees
- No excess transaction fees
- Unlimited debits and withdrawals
The only fees you may incur include:
- Out-of-network ATM fees – But these are reimbursed by Capital One 360
- Overdraft fees if opt in to overdraft protection
- Stop payment fees for each stopped check as requested
So you avoid all account fees charged directly by Capital One 360. Consumers can grow and access money with minimal costs.
Pros and Cons of Capital One 360 Money Market
Key advantages include:
- High interest rates surpassing national averages
- No monthly fee or minimum balance
- Robust mobile app and digital experience
- Unlimited checks and debit card for withdrawals
- Easy integration with Capital One accounts
- No way to deposit physical cash
- Limited branch locations for in-person service
For those comfortable banking digitally, Capital One 360 provides a compelling money market option paying multiples more than average.
How Deposits Are FDIC Insured
Balances in the Capital One 360 money market remain protected:
- Capital One 360 accounts are FDIC insured
- Covers account balances up to $250,000 per depositor
- Joint account balances insured separately up to $250,000 each
- Easy to divide among separate account types like savings/CDs for expanded protection
Even as interest rates rise and balances grow, depositors can sleep soundly knowing funds are insured.
Signing Up for Overdraft Protection
To avoid fees if a money market withdrawal overdraws:
- You can enroll in free overdraft transfers from linked Capital One accounts
- Set up to pull from 360 checking account or another money market if balance insufficient
- Can specify exact sources and transfer order preferences
- Transfers in increments of $100 triggered when balance below $0
Overdraft transfers prevent returned checks or debit declines when money market has insufficient funds to cover withdrawals. Just ensure backup accounts have enough to cover.
Who It’s Best For
The Capital One 360 money market suits:
- Savers seeking higher returns along with withdrawal flexibility
- Those with at least $50,000 – $100,000 to earn the top rates
- Investors who make frequent deposits/withdrawals and want to earn interest in between
- Hands-on money managers who use checks/debit cards for purchases
- Customers already loyal to Capital One who want seamless integration
With top-tier rates for higher balances along with ample flexibility, the Capital One 360 money market provides an attractive hub for consolidating cash savings both short and long-term.
How It Compares to Other Capital One Products
The Capital One 360 money market complements other available options:
- Earn up to 0.30% APY on checking with $5000 minimum balance
- No overdraft fees and refunds out-of-network ATM fees
- Free custom checks and debit card included
- Requires more activity to maximize yield
- Basic deposit savings account currently at 2.00% APY
- No debit access – transfers limited to 6 per month
- Lower yields but no minimum or maximum balances
- Better option for pure emergency fund savings
- Terms from 6 months to 5 years
- Fixed interest rates up to 3.00% APY
- Minimum $0 opening deposit
- Locks up money for set period with penalties
The 360 money market complements the suite of savings, checking, and CD options nicely for maximizing returns.
How It Compares to Other Money Markets
The Capital One 360 money market fares well when compared to alternatives:
CIT Bank Money Market
- Also no monthly fees or balance minimums
- High yield but lower interest rate of 2.15% APY as of February 2023
- Only reimburse $30/month in out-of-network ATM fees
HSBC Premier Money Market
- Very competitive interest rates, up to 3.05% APY
- $50 monthly fee unless $75,000 combined deposit balance maintained
- Minimum opening deposit of $10,000 is steeper
BMO Harris Money Market
- Solid 1.35% interest rate with no minimums
- $10 monthly maintenance fee unless $2,500 minimum balance
Marcus Money Market
- Top 1.90% APY with no monthly fees or minimums
- But only reimburses $10/month in out-of-network ATM fees
The Capital One 360 money market provides a compelling blend of high interest, no monthly fees, and robust digital convenience.
Pros and Cons for Savers
For savers, advantages include:
- Strong interest rates reward maintaining higher balances
- No minimum or maximum balance constraints
- Avoid early withdrawal penalties CDs carry
- Debit card and checkbook provide easy access without transferring
- Interest rates still trail some competing savings/CD options
- No physical branch locations for in-person banking
With rates far better than national averages, the Capital One 360 money market offers savers a great way to grow cash balances without locking up money.
Pros and Cons for Investors
For investors, key pros and cons include:
- Park cash securely earning interest in between investments
- Withdrawals anytime so can react to market dips
- Debit access facilitates moving cash to brokerage accounts
- Digital convenience for frequent money movement
- Higher rates exist on brokered CDs or high yield savings
- Requires manual transfers instead of automated sweep options
Investors who make frequent deposits and withdrawals benefit from the unlimited flexibility to earn interest until money moved into markets.
Who Should Choose Another Option
The Capital One 360 money market may not be the best fit if:
- You require in-person branch access and prefer interacting face-to-face for banking needs
- You need to make routine cash deposits – no ability to deposit physical cash
- Interest earning is a higher priority than withdrawal flexibility
- You maintain very low balances without $50,000+ to earn top rates
- You seek to open multiple accounts to maximize FDIC insurance protections
Customers reliant on branch access or needing higher rates may favor options from traditional brick-and-mortar banks or competing online banks.
How the Capital One 360 Money Market Stacks Up
The Capital One 360 money market earns 4 out of 5 stars overall based on:
- Top tier interest rates, especially for higher balances
- No monthly fees or balance minimums
- Full debit and checkbook capabilities
- Excellent mobile app and digital experience
- Seamless integration with existing Capital One accounts
Minor detractions are lack of physical branches and cash deposits. But for a primary online money market account, Capital One 360 is tough to beat.
Is the Capital One 360 Money Market Right for You?
The Capital One 360 money market provides an accessible online money market option paying rates far exceeding national averages. With multiple ways to deposit and withdraw funds while earning competitive yields, it bridges savings and checking capabilities. For those with at least $50,000 to invest seeking high returns and seamless digital money management, the Capital One 360 money market is an excellent choice overall.