Capital One 360 (Online Checking Acct)

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Joe M
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Joined: Thu Feb 13, 2014 1:25 pm

Capital One 360 (Online Checking Acct)

Post by Joe M »

Just wondering if anyone has experience/recommendations with online checking accounts. I know it's frowned upon to keep unneeded funds sitting in a checking account with basement interest rates, but after doing some research I've found you can do marginally better with online checking accounts than the interest rates traditional brick and mortar banks provide.

Thoughts? Also looking for additional short term homes for my income as a I nail down my 3-5 yr plan.
mervinj7
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Re: Capital One 360 (Online Checking Acct)

Post by mervinj7 »

I've used Capital One 360 for almost ten years (from back when they were ING Direct) and service has been great. I use it for all my online banking needs (e.g. paying bills, paycheck direct deposit, mobile check deposit, and emergency fund). I have a checking account, savings account, joint savings account, and a CD ladder with them.
Another option to consider is Ally Bank. They have slightly higher rates and are consistently in the top five list on bank rates. For comparing sites check out: http://www.bankrate.com/funnel/savings/
Topic Author
Joe M
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Re: Capital One 360 (Online Checking Acct)

Post by Joe M »

Thanks - that's the kind of advice based on experience I'm looking for.
investor1
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Re: Capital One 360 (Online Checking Acct)

Post by investor1 »

I have used CO360 for a while. I don't have any complaints, and there isn't really anything to write home about. If you want a referral link, let me know and I'll send you one. I think I'd get $10 and you'd get $50.
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Joe M
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Re: Capital One 360 (Online Checking Acct)

Post by Joe M »

Did a bit more research and I think I'm going to go w/ Ally
bloom2708
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Re: Capital One 360 (Online Checking Acct)

Post by bloom2708 »

I loved ING direct. I had several accounts when rates were 4+% in the mid-2000s. Not as big of a fan of Capital One. But that might just be my association with the credit card ads.

I moved all money out to different pastures when rates came down to under 1%.

I still have a 360 checking account, but just keep $100 in it. I should close t.
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danwhite77
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Re: Capital One 360 (Online Checking Acct)

Post by danwhite77 »

I used to have a Cap One banking account for many years but switched over to Ally. I actually didn't switch to Ally for the higher interest rates, I switched out of frustration because I felt as though whichever Cap One banking product I used never had the highest rate. Seemingly, Cap One would advertise a fairly high rate and I would log in and my rate would not be that high. Maybe I somehow misunderstood something, but now I'm happy with Ally because the rate that I see advertised or on bankrate.com is the rate that I'm receiving -- there's only one place to bank your money at Ally.
"While some mutual fund founders chose to make billions, he chose to make a difference." - Dedication to Jack Bogle in 'The Bogleheads' Guide to Investing'.
dylanh
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Re: Capital One 360 (Online Checking Acct)

Post by dylanh »

I use Schwab which probably pays a lower interest rate, but I can attest that online checking in general works great for my family. Schwab reimburses all ATM fees so I never have to drive out of my way to find the right ATM. Plus you can deposit checks with your cell phone so there really isn't a down side. I don't keep extra money in the account to generate interest, but its nice to bring in a little something extra with no extra work.

Dylan
investor1
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Re: Capital One 360 (Online Checking Acct)

Post by investor1 »

Does Ally allow you to have sub-accounts like ING/CO360 did/does?
Topic Author
Joe M
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Re: Capital One 360 (Online Checking Acct)

Post by Joe M »

investor1 wrote:Does Ally allow you to have sub-accounts like ING/CO360 did/does?
Yep - Ally allows you to open multiple accounts.
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nisiprius
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Re: Capital One 360 (Online Checking Acct)

Post by nisiprius »

Joe M wrote:Just wondering if anyone has experience/recommendations with online checking accounts. I know it's frowned upon to keep unneeded funds sitting in a checking account with basement interest rates, but after doing some research I've found you can do marginally better with online checking accounts than the interest rates traditional brick and mortar banks provide.

Thoughts? Also looking for additional short term homes for my income as a I nail down my 3-5 yr plan.
Well, personally, I don't frown on it... it all depends what the difference is between checking account interest and the interest rates offered for any other similarly liquid, safe, cash-like vehicle. It's a case of "do the math." I know some people simply believe in the indiscriminate pursuit of "best," but I think amount matters and not just direction. I put it into scale with everything else. It's a sort of smug vanity to pretend that you don't ever waste money or make mistakes. For example, just the other day I somehow lost the pedometer I clip to my shoe, so I drove out to Walmart (ten mile round trip, figure $0.50 a mile, $5) and bought a new one ($30). Pfffff.... wasted $35, didn't think twice about it. Forgot to put my Swiss Army knife into my checked bagged, cost me $12.95 (and some stern looks from TSA) to have it mailed back to me. Pffft...

I don't remember what... well, it's not Electric Orange now, what it is? 360 Checking. 0.2% up to $50,000. 0.75% for savings accounts. So the difference is 0.55%. On a balance of $10,000, that's $55 a year. I mean... shrug. It's a point of principle with some people to pick up pennies from the sidewalk and never consciously waste anything at all, but I do not live a waste-free existence and $55 a year is not too much to pay if I am getting some meaningful convenience.

I had Electric Orange (predecessor to 360 Checking). I have some big reservations about it. First, the name is misleading. There are actually a surprising number of times we do need to write checks, or at least find checks the best solution to a problem, so I feel that we "need" an account somewhere that a) can be accessed by writing paper checks b) for arbitrarily low amounts. (And no, we don't buy the checks from the bank, I go online and buy the plainest simplest cheapest check I can find...)

At the time, I found that the ATM network was annoyingly limited--not impossibly limited but annoyingly limited. And I was very annoyed to discover that there was no way to deposit money easily--the ATM machines that dispensed cash would not accept deposits. Now, they have image deposit which I use on my 360 Savings accounts, but that is limited to a deposit of $3,000. So, still a nuisance.

Finally, it is very hard to calibrate paranoia, but to me the most "sensitive" online accounts are those that provide an explicit way to take money out of an account and send it to an arbitrary third party. An online savings account is OK because the only place you can transfer money TO is your own bank account, and it would take a identify thief at least a little time to complete the steps to create a forged account under their control and link it. Similarly Vanguard seems OK, because the only thing I can do from a Vanguard account is to transfer money to my own bank account OR have a paper check mailed to my physical address.

Like PayPal, an online account like 360 Checking seems risky to me because it is designed to transfer money out of my control and into somebody else's control.

I'm not saying don't do it, I'm saying think the security aspects through. Figure out how you are going to make deposits. And figure out what you are going to do if a local club wants you to pay $25 in annual dues and hates to take cash.
Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness; Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery.
flyingaway
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Re: Capital One 360 (Online Checking Acct)

Post by flyingaway »

I have Capital One 360 savings (and checking) accounts to hold my emergency fund for many years. But I do regular banking activities using a Chase account, and transfer money between them regularly.

They worked well, except once I transferred a large amount of money in a wrong direction.
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Joe M
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Re: Capital One 360 (Online Checking Acct)

Post by Joe M »

Thanks for the response, nisiprius.

To address a couple of your thoughts:

- Alloy actually provides paper checks at no cost. In addition, and in my case, I currently work for a bank and will keep a checking account there with a nominal amount to continue to be an engaged employee.....
- Virtual security and ID theft protection are both important to me. I went through the exercise recently of changing multiple passwords to online accounts and realized just how many touchpoints I have in the virtual footprint whether it's billpay sites, online retailers, or investment centers/banks. Ally guarantees that you will not be liable for any unauthorized Online or Mobile Banking transaction as long as you report the unauthorized transaction within 60 days from when your statement is made available.
Mongoose
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Re: Capital One 360 (Online Checking Acct)

Post by Mongoose »

I started with Ally and then recently switched to Cap One 360. My frustration with Ally was that even though I would tell it to remember my computer, it forgot EVERYTIME and I needed to go through the hassle of getting an email and entering the code to access my account. Normally this wouldn't be so bad, but about 75% of the time it took 5-10 minutes to get the code. Just a real hassle.

Full disclosure I live in Mid East so the time difference is 7hrs from eastern US- could be one of the reasons why it took so long for everything (I always log in after hours US). Cap One does not have this problem.
obgraham
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Re: Capital One 360 (Online Checking Acct)

Post by obgraham »

Another one been with ING and now CapOne360 for 10 years. I've had ZERO problems with them. I do all my banking, bill paying, auto-debits, etc with them.

They've never made an error in my accounts.
They have no-charge ATM's all over the country.
They have phone service that actually IS customer service.
They do have paper checks available (yes, $5, but I use 5 a year)
They have online deposits by scanning/photographing the item
They do seamless transfer between accounts, and to my local bank that my wife uses.
I see no security risks beyond those inherent in using any bank.
They recently joined the list of banks not charging a fee for overseas transactions.
I don't see the point of chasing .1% in interest.

What's not to like? Great service!
snowman
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Re: Capital One 360 (Online Checking Acct)

Post by snowman »

obgraham wrote:Another one been with ING and now CapOne360 for 10 years. I've had ZERO problems with them. I do all my banking, bill paying, auto-debits, etc with them.

They've never made an error in my accounts.
They have no-charge ATM's all over the country.
They have phone service that actually IS customer service.
They do have paper checks available (yes, $5, but I use 5 a year)
They have online deposits by scanning/photographing the item
They do seamless transfer between accounts, and to my local bank that my wife uses.
I see no security risks beyond those inherent in using any bank.
They recently joined the list of banks not charging a fee for overseas transactions.
I don't see the point of chasing .1% in interest.

What's not to like? Great service!
This has been exactly my experience, over the same period of time. The interest rate increase would have to be substantial for me to move.
Jerrybaby
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Re: Capital One 360 (Online Checking Acct)

Post by Jerrybaby »

I have more checking/savings accounts than the average person: Fidelity, Schwab, Regions Bank, Ally, CapOne360, FNBO, and Wells Fargo.
If I had to rank based on my experience:

1) Ally
2)CapOne360
3)Charles Schwab
4)Fidelity
5)FNBO
6)Wells Fargo
7)Regions

The last two are just hanging around because they are brick and mortar institutions. The remaining five (online banks) each brings something unique to the table.
YttriumNitrate
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Re: Capital One 360 (Online Checking Acct)

Post by YttriumNitrate »

I used to have a Capital One online account...used to. Perhaps they are different now, but it seemed like they would offer decent rates and then every 6 to 18 months they would come up with a new product that would have the good rate while the rates of the older products would drop. Of course you can switch to the newer products, but it's a bit of a hassle so after the second switch I just gave up and moved over to Barclays.
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OAG
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Re: Capital One 360 (Online Checking Acct)

Post by OAG »

We have a Capital One Account and have had it for over 20 Years. Currently only have a Savings Account which is used for transferring money out via free ACH. Still have several 10 year 5.5% and 5.25% CD's there - but that will end late in 2015 when the last one matures. Although it looks like we will then close the account they have been a very good bank to work with for a very long time.
OAG=Old Army Guy. Retired CW4 USA (US Army) in 1979 21 years of service @ 38.
Topic Author
Joe M
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Re: Capital One 360 (Online Checking Acct)

Post by Joe M »

Thanks for all the replys.
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