Capital One Online Savings

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Post Reply
Topic Author
anonenigma
Posts: 1137
Joined: Thu Apr 21, 2011 11:58 pm

Capital One Online Savings

Post by anonenigma »

I opened my account when Capital One had a deal with Costco, but the interest rate has declined to 0.37% plus a quarterly bonus. That's not close to what a number of other online banks are paying. Should I just move the funds?
EverydayWorrier
Posts: 4
Joined: Fri Dec 11, 2015 12:06 am
Location: Bay Area
Contact:

Re: Capital One Online Savings

Post by EverydayWorrier »

I have a Capital One 360 Savings, which pays 0.75% APY. I like it because I can instantly move funds from savings to Capital One Investing. So, if I want to buy some stocks, transfer the money into my investing account immediately. I am not sure how good the quarterly bonus is for your Costco deal, but if you think 0.37% interest rate + quarterly bonus gives you at least as much overall gain as investing in an online bank (e.g. Barclays, which pays 1.00%), then go for it.
"If it doesn't work, then make it work" - ROKMC
JDDS
Posts: 1056
Joined: Sun Mar 16, 2014 2:24 pm

Re: Capital One Online Savings

Post by JDDS »

Based on the info you have given so far, likely yes. Do you have any accounts linked to this one that might be difficult to transition to a new account? I am slowly learning that it is pretty easy to shift money around to where I am getting the better deal.
boglerdude
Posts: 928
Joined: Fri Jul 10, 2015 1:28 am

Re: Capital One Online Savings

Post by boglerdude »

The capitalone360 savings is .75%
User avatar
Kenster1
Posts: 3225
Joined: Wed Feb 28, 2007 9:50 pm

Re: Capital One Online Savings

Post by Kenster1 »

boglerdude wrote:The capitalone360 savings is .75%
Yes that's right - the Capital One 360 Online Savings is currently at 0.75% APY. While not in the top tier group offering 1% APY - it's still a pretty good rate and convenient especially if you are also using their Checking account.

https://home.capitalone360.com/online-savings-account
SURGEON GENERAL'S WARNING: Any overconfidence in your investing ability, willingness and need to take risk may be hazardous to your health.
IPer
Posts: 1639
Joined: Sun Jul 28, 2013 8:51 pm

Re: Capital One Online Savings

Post by IPer »

Ally:

Checking 0.10% APY
Savings 1.00% APY

fyi
Read the Wiki Wiki !
signewton
Posts: 42
Joined: Sat Jun 13, 2015 4:50 pm

Re: Capital One Online Savings

Post by signewton »

I was thinking about moving to ally myself. Then i started reading all of the current reviews basically saying how Ally bank has went downhill.


Anyone here using them that can chime in?
User avatar
HueyLD
Posts: 9790
Joined: Mon Jan 14, 2008 9:30 am

Re: Capital One Online Savings

Post by HueyLD »

signewton wrote:I was thinking about moving to ally myself. Then i started reading all of the current reviews basically saying how Ally bank has went downhill.
Could you show some examples indicating that Ally Bank has gone downhill?
signewton
Posts: 42
Joined: Sat Jun 13, 2015 4:50 pm

Re: Capital One Online Savings

Post by signewton »

HueyLD wrote:
signewton wrote:I was thinking about moving to ally myself. Then i started reading all of the current reviews basically saying how Ally bank has went downhill.
Could you show some examples indicating that Ally Bank has gone downhill?
Like i wrote above, I dont own Ally I just read reviews.

Google ally bank reviews. Read the most current ones and you will see. I'll stick with capital one for now
simmias
Posts: 250
Joined: Sun May 17, 2015 4:18 pm

Re: Capital One Online Savings

Post by simmias »

Those reviews read like they come from idiots who thought an online bank would provide them the same convenience as a brick and mortar.

If you're looking for a place to park money and serve as a transaction hub for push/pulls, it's hard to beat Ally.

If you're looking to talk to actual people all the time and conduct complicated banking business, you need a brick and mortar.
IPer
Posts: 1639
Joined: Sun Jul 28, 2013 8:51 pm

Re: Capital One Online Savings

Post by IPer »

signewton wrote:
HueyLD wrote:
signewton wrote:I was thinking about moving to ally myself. Then i started reading all of the current reviews basically saying how Ally bank has went downhill.
Could you show some examples indicating that Ally Bank has gone downhill?
Like i wrote above, I dont own Ally I just read reviews.

Google ally bank reviews. Read the most current ones and you will see. I'll stick with capital one for now
I have cash in both Ally and Capital One, they seem to work the same to me, neither going up nor down hill as far
as I can ascertain, but I know nuthin!
Read the Wiki Wiki !
tenkuky
Posts: 2626
Joined: Sun Dec 14, 2014 3:28 pm

Re: Capital One Online Savings

Post by tenkuky »

I moved to Ally couple of months ago.
No issues, nervous about tier changes but unfounded.
Expectations for online bank satisfied.
User avatar
Toons
Posts: 14467
Joined: Fri Nov 21, 2008 9:20 am
Location: Hills of Tennessee

Re: Capital One Online Savings

Post by Toons »

If you are into rate chasing I would move.
Personally I am satisfied with Cap One Checking and Saving.
:happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
FedGuy
Posts: 1677
Joined: Sun Jul 25, 2010 3:36 pm

Re: Capital One Online Savings

Post by FedGuy »

I've been disappointed with Ally. I opened an account with them a few months ago based on the recommendation of people on this board. I was primarily motivated by disappointment and concern that my brick and mortar bank does not offer 2-factor authentication; people on this board reported that Ally has 2-factor authentication, so I decided to open an account and funded it with a fairly nominal percentage of my savings, with plans to move the bulk of my money there over the course of the next few months.

After setting up the account, I looked for the option to activate 2-factor authentication, which I was unable to find. A CSR eventually recommended that I change my settings to tell it that my home computer is not a trusted computer, which would result in me being required to enter a texted code every time I logged in (I must have accidentally clicked the wrong option during my initial account creation). The CSR helped me change my settings.

I was surprised when I next logged in and was not required to enter a code. What followed was an agonizing chain of events in which I would send them a secure mail explaining my problem, they'd reply a day or two later to tell me to call, the person on the phone would hit a few keys on his or her keyboard and then tell me that my computer would no longer be trusted and I'd be required to enter the code each time I logged in, we'd test it while I was still on the phone, I wasn't required to enter the code, the CSR would tell me that it might take time for the change to take effect and to try again sometime later, I would, still wouldn't be required to enter the code, and the whole process would repeat. This happened 2 or 3 times before I was finally transferred to someone in IT security (or whatever) who flat-out told me that Ally does not offer 2-factor authentication, that they couldn't change it so that I'd be required to enter a security code, and that I was out of luck.

So, it's bad enough that they don't actually offer 2-factor authentication, and if I checked the wrong option during account set-up that's on me (but there really should be a way to change that later). But the crazy runaround I got trying to fix the problem made me feel like I was banking with the 3 Stooges. I've kept my account open for now, but I don't plan to transfer any more money there.
User avatar
Kenster1
Posts: 3225
Joined: Wed Feb 28, 2007 9:50 pm

Re: Capital One Online Savings

Post by Kenster1 »

Some of the reviews for Ally have soured because of some changes - so it may or may not affect you at all. For example - their NSF or Overdraft fees used to be $9 but have now gone up to $25. Most banks do charge $25 - $35. But Ally does not charge for having your Checking account dip into Savings for overdraft protection if you have that setup - so people should perhaps have this setup if they are the types who run into these types of problems.

Secondly, they used to offer unlimited reimbursements for ATM fees but have recently capped it to $10/month. However, you will not get charged ATM fees for using the network of AllPoint ATMs - so those are free to use. This is still at least as good as the Capital One 360 Checking or even slightly better because Ally does include up to $10 ATM fee coverage per month. Are you the type who takes out cash frequently and want no fees from being able to use any ATM?

So whether these changes affect/bother you depends on the type of user you are.

So the above are examples around the edges that may have upset a group of customers and think that Ally is doing downhill. But they continue to be highly rated as one of the best online banks and the current offerings are still very competitive.

All banks have some type of bad reviews - so does Capital One. Some examples:
Reviewed By Will Z Aug 15, 2015
Untrusted bank, non-standard banking practice

My account with ING Direct used to be satisfactory, but since CapitalOne 360 took it over, its management has taken a dive. Here is a story of my checking account with this bank.

It concerns my $20,000 online transfer that I made on June 5. After successfully establishing an external account with entering the amounts of two small deposits that CapitalOne 360 made, I made such a transfer to my daughter-in-law’s bank account with Chase. My account showed that this amount has been deducted from it and that this amount had been in the account of the recipient.

Then, on June 13, I had received an email message saying that CapitalOne was “restricting” my account and requesting me to call CapitalOne at this phone number (1-866-464-7761), though I followed every step that your bank instructed without any prior warning.
After dozens of attempts (no kidding!) to reach its customer service again, I finally got a hold of an agent (“Meggie”) on an agent Tuesday, June 23. But she first said to me that it would take five business days. When I told her that it had been five business days since the day of Tuesday, June 17, when this amount was taken out of that Chase account that I transferred to, she changed her mind saying that “It would take seven business days.”

Then, I requested to talk to a supervisor on Tuesday, June 23, and someone named “Kevin” called the following day around 5 p.m. and promised to work on it and get back to me. But “Keven” has never called me back until today, June 29.
I noticed that that $20,000 came back to my account on Saturday morning, June 27, but I have received no calls or email informing me of this several or transfer whatsoever.

After that, I wrote directly to its President about my complaints. Two weeks later, he wrote me back; however, his letter includes no apology, not even words like sorry or regret. It is full of words of game.

No wonder so many reviews have expressed their dissatisfactions. It is the time that its management team wakes up and change.
Reviewed By Dmk1820 Sep 1, 2015
Customer service is poor

If you want to be able to access your money don't bank with them. As they may put a hold on your funds for no reason at times. Charge you fees out of place. They don't care. Customer service won't help with anything. The worst service in the banking industry. Stick to your credit union banks they give back more to your communities.
Reviewed By HerbSmith Sep 23, 2015
I want my ING back

I really miss the old ING. Things just worked then. Now they seem to mess something up every money. It would appear they are starving the IT staff and not supplying the resources to get things fixed. Or test fully before production.

They did something with paper check numbers and now they are not found in searches. They no longer match up automatically checks with entries made in the on line registers. Made one fix and then screwed something else up.
For over two months one can not use Internet Explorer 11 in their messaging system. Come on, it is one the most popular browsers out there. And they can not fix it in two months.

Now they can not set up new external bank transfers on line. No explanation of why. I will not call over the phone, as it is way to insecure. I have no idea of what the person on the other phone is writing down to take home with them.
If Capitol One management see this please take some action to fix what is going downhill fast.
Reviewed By mhm313 Nov 27, 2015
Horrible bank. Avoid at all cost. They stole my money

I opened a capital one 360 checking account online and after their security verification they told me the account is open now and I even received the debit card. Then I deposited a check in the account and the check cleared. After a few days, they contacted me saying that they couldn't verify my identity and they have closed the account. I was unable to get my money out of the account and I called them several times, they always tell me that I need to stop the check ( Do you believe that! Don't they know that cleared check cannot be stopped! Did they ever worked in a bank! ). It seems that they don't know what they are doing. I even filed a claim to Better Business Bureau but they ignored it. I think my only option is to go to court and file a small claim to get my money back. Please do yourself a favor and avoid this bank a all cost.
Reviewed By Nitza May 17, 2015
Terrible customer service

I loved ING Direct. But since Capital One took over this bank, it has gone downhill fast. Now they finally have paper checks. Up until now, only online payments were possible. These are special checks and I was told that checks from another printer will not work. But computer checks are not available and the people there are nasty. I have no intention of going back to writing checks by hand.
Reviewed By dej2010 Feb 24, 2015
Was A Great Bank Right Up Until.

Capital one 360 closed my account. No warning, no phone call or email. I found out about it because i suddenly could no longer log in any my transactions started to bounce. When i called to find out what was happening, the typically cheery rep suddenly became stern and cold with me. "you'll get a letter in the mail explaining why. "
you might assume i was a bad customer. I certainly can't imagine how that would be possible. $20k a month in and out of my account, three year relationship. I'll admit that i wrote about five checks over the life of the relationship that bounced - the most recent being 6 months ago - because my direct depositor had an unfortunate habit of sending funds a day late and i would occasionally write a check the day before the deposit assuming it would be ok.

I take ownership of this mistake, and i paid my penance for this transgression through bank fees on my "no fees" account. If i am the definition of a customer who deserves a sudden banking crisis followed by a curt letter that says "going forward, no additional activity can take place and no new accounts can be opened. Thanks, capital one 360" then this is the bank for you. My letter in return:

Dear capital one 360,
when i let you hold on to my money while i wasn't using it, i thought you'd appreciate the interest you could earn by turning around and loaning it to your mortgage customers. Now that you've had a sudden change of heart and told me to get lost, i want to return the favor. I've let many people know about your customer relationship approach and the value each individual account holder has to you.
As for the people whom i've previously recommended capital one 360, i have contacted each one to rescind and apologize for my recommendation. Going forward, no marketing material or other contact of any kind will accepted. In addition, i will make an effort to let as many people know my experience as i am able. Thanks,
-your former
SURGEON GENERAL'S WARNING: Any overconfidence in your investing ability, willingness and need to take risk may be hazardous to your health.
User avatar
sperry8
Posts: 3065
Joined: Sat Mar 29, 2008 9:25 pm
Location: Miami FL

Re: Capital One Online Savings

Post by sperry8 »

I have both Cap One, Ally and about a half dozen other online banks. Have for many years. Ally is one of the best. They are my ACH clearinghouse (I use them because they allow me to move money across online banks via push/pull easily, free and fast). They offer a generous interest rate that remains near the top (but is never the top). I have their ATM card too and use it at Allpoints for free. It also works abroad although it does get the 1% fee - so use it only as a backup.

Join Ally, you won't be disappointed and you'll pick up an extra .25%.
BH Contests: 23 #89 of 607 | 22 #512 of 674 | 21 #66 of 636 |20 #253/664 |19 #233/645 |18 #150/493 |17 #516/647 |16 #121/610 |15 #18/552 |14 #225/503 |13 #383/433 |12 #366/410 |11 #113/369 |10 #53/282
Topic Author
anonenigma
Posts: 1137
Joined: Thu Apr 21, 2011 11:58 pm

Re: Capital One Online Savings

Post by anonenigma »

Even though I hardly touch the account, it sounds like I should leave Capital One. I have funds with Ally and AMEX Bank. For the sake of diversification and FDIC coverage, I'll need another option. Synchrony? Ever?
User avatar
Kenster1
Posts: 3225
Joined: Wed Feb 28, 2007 9:50 pm

Re: Capital One Online Savings

Post by Kenster1 »

Well I was just pointing out that it was mentioned there have been some bad reviews of Ally lately but I was just merely pointing out examples that even Capital One Banking also gets some bad reviews as well. They all do - but you have to look at the overall and bigger stats.

Also - you have to read the fine prints to see which accounts meets your needs.

Barclays Online Savings account offering 1% APY says:
Please note: we don’t accept checks drawn on foreign banks, third-party checks, money orders, wire transfers or cash deposits. (A third-party check is a check that is signed over to an individual not named on the front of the check.)
That seems a bit odd to me that they don't accept wire transfers? Ally Savings does allow for incoming wires (domestic and international) with no fees.

Does that matter to you? Those are examples of things you may have to consider and comb thru to decide what you want and meets your needs.

Btw, GE Capital is an interesting one. Do they have 2 different Banking units? Synchrony Bank is a new bank name spun-off from GE Capital but at the same time GE Capital is also wanting to get rid of their Online Banking by trying to sell it to Goldman Sachs Bank - which is a pending sale and I think just waiting for approval from regulators.

There have also been good reviews nationally for Alliant Credit Union - which has been a long-time institution with stable offerings - currently offering 1% APY Savings account and they generally have been near the top. Checking account has no min balance and no fees - but if you sign up for eStatement and have 1 monthly deposit you can earn 0.65% APY. Huge network of no-fee ATMs (80,000) and they reimburse up to $20/month if you use any ATMs that charge a fee. Easy for anyone nationally to join - $10 contribution to Foster Care to Success.

Secondly, do you care about leading edge technology? Maybe the Millennials are more progressive in this area of Mobile payments? But Alliant Credit Union checking accounts now support Apple Pay.

http://www.alliantcreditunion.org/
.
Last edited by Kenster1 on Sat Dec 12, 2015 12:42 pm, edited 2 times in total.
SURGEON GENERAL'S WARNING: Any overconfidence in your investing ability, willingness and need to take risk may be hazardous to your health.
User avatar
nisiprius
Advisory Board
Posts: 52219
Joined: Thu Jul 26, 2007 9:33 am
Location: The terrestrial, globular, planetary hunk of matter, flattened at the poles, is my abode.--O. Henry

Re: Capital One Online Savings

Post by nisiprius »

I have no complaints about my Capital One 360 online account. I keep it because of inertia. I find their rates disappointing but acceptable. My online savings account is paying me 0.75%, my local brick-and-mortar bank is paying 0.50%, shrug. The turning point from "great" to "meh" occurred well before ING Bank was acquired by Capital One. They hadn't had great rates for, oh, at least four years before. I haven't noticed Capital One 360 being any worse than ING.

If, however, their savings rate dropped to 0.37%--that is to say, less than the local bank--I'd probably feel obliged to leave because of The Principle Of The Thing.

Capital One 360 has opened a storefront in Boston and has been on a marketing blitz trying to appeal to millennials about how un-bank-like it is. I visited it once just to see. It's a big bunch of nothing. It's just a bank, only they stand behind shallow tables like a trade show instead of a tall counter, and they have their investments table sort of mixed up with their bank table, and they have a little Peet's Coffee cafe in it--not full-sized, sort of like an airport version of a coffee shop--and if you have an account you get to buy your double-priced coffee at half the double price.

By comparison, my brick-and-mortar bank doesn't have a counter with baristas and stuff, but they have table with a sort of oversized Keurig machine, and you can get a cup of perfectly cromulent Keurig coffee for free. I'd rather have free Green Mountain Breakfast Blend coffee than half-the-double-price Major Dickason's Blend any day. Perhaps the young folks feel different.
Last edited by nisiprius on Sat Dec 12, 2015 12:43 pm, edited 1 time in total.
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.
Jack FFR1846
Posts: 18503
Joined: Tue Dec 31, 2013 6:05 am
Location: 26 miles, 385 yards west of Copley Square

Re: Capital One Online Savings

Post by Jack FFR1846 »

I have both a cap one 360 account (opened for the $100 bonus) and an Ally savings account.

I do only simple things. Transfer money in from my credit union, transfer money out to my credit union, use the free ATM for cap one 360 to pull out $20 now and then.

No issues, no problems, been great. I'm closing the 360 account because the 0.75% is lower than Ally 1%.

Only problem I can think of is Ally sending the message that they're going to tiers with different rates. So far, the tiers all have the same rate. If they drop below 0.85%, I'll move everything back to my credit union and close it.

Pretty simple to me.....but I only really do simple things. I do all my real banking at DCU.
Bogle: Smart Beta is stupid
SrGrumpy
Posts: 1477
Joined: Wed Aug 05, 2015 3:21 pm

Re: Capital One Online Savings

Post by SrGrumpy »

signewton wrote:I was thinking about moving to ally myself. Then i started reading all of the current reviews basically saying how Ally bank has went downhill.

Online reviews are the curse of the Internet age (he said, hypocritically). They can drive you nuts, and their legitimacy is suspect at best. And consider that normal people rarely go to the trouble of posting positive reviews for something as mundane as banking.

Like others have said, you have to read the fine print and look for the bank that works best with your specific circumstances, not - for example - those of the aforementioned Capital One reviewer who has bounced a half-dozen checks. Ally should be fine for you. I have it, as well as Capital One.
User avatar
sperry8
Posts: 3065
Joined: Sat Mar 29, 2008 9:25 pm
Location: Miami FL

Re: Capital One Online Savings

Post by sperry8 »

anonenigma wrote:Even though I hardly touch the account, it sounds like I should leave Capital One. I have funds with Ally and AMEX Bank. For the sake of diversification and FDIC coverage, I'll need another option. Synchrony? Ever?
Capital One is good too. Nothing wrong with them and since it's free to keep, I'd keep it open.

However Synchrony & CIT Bank have higher interest rates so if you're keeping a good amount of dry powder it's worth opening with one of them as well imo. I have all four. I shift funds around depending on highest interest rates. No reason leaving money on the table when a simple ACH transfer earns you some extra coin :moneybag
BH Contests: 23 #89 of 607 | 22 #512 of 674 | 21 #66 of 636 |20 #253/664 |19 #233/645 |18 #150/493 |17 #516/647 |16 #121/610 |15 #18/552 |14 #225/503 |13 #383/433 |12 #366/410 |11 #113/369 |10 #53/282
signewton
Posts: 42
Joined: Sat Jun 13, 2015 4:50 pm

Re: Capital One Online Savings

Post by signewton »

Does ally offer atm deposits at this time?

How long are their hold times for cash/check deposits?

Does ally do hardpulls or softpulls?
SrGrumpy
Posts: 1477
Joined: Wed Aug 05, 2015 3:21 pm

Re: Capital One Online Savings

Post by SrGrumpy »

signewton wrote:Does ally offer atm deposits at this time?

How long are their hold times for cash/check deposits?

Does ally do hardpulls or softpulls?
1. No, according to the Deposits FAQ, https://www.ally.com/help/
2. You mean when is the money available to you? Depends - see also the Deposits FAQ
3. Soft pulls.

I should also add that Ally offers free Webroot virus protection, worth about $60
User avatar
gasdoc
Posts: 2042
Joined: Mon Nov 03, 2014 7:26 am

Re: Capital One Online Savings

Post by gasdoc »

IPer wrote:Ally:

Checking 0.10% APY
Savings 1.00% APY

fyi
The checking account rate for Capital One ranges from 0.2% to 0.9%, much better than the checking account rate for Ally.

gasdoc
eskouster
Posts: 46
Joined: Wed Aug 06, 2008 10:46 pm

Re: Capital One Online Savings

Post by eskouster »

I like Ally because I can make ATM withdrawals anywhere without paying fees. It has a good website and app with nice touches, like seeing the current wait time for phone support. I've used them for several years, and haven't had a problem.

I use Bank of America as my brick-and-mortar bank, and it's also fine.
User avatar
sperry8
Posts: 3065
Joined: Sat Mar 29, 2008 9:25 pm
Location: Miami FL

Re: Capital One Online Savings

Post by sperry8 »

gasdoc wrote:
IPer wrote:Ally:

Checking 0.10% APY
Savings 1.00% APY

fyi
The checking account rate for Capital One ranges from 0.2% to 0.9%, much better than the checking account rate for Ally.

gasdoc
Ally's checking account rate is .6% if you hold $15k https://www.ally.com/bank/interest-checking-account/

You have to hold over $50k to get .75% with Cap One 360 - https://home.capitalone360.com/rates

Better off with that amount in a savings/money market imo
BH Contests: 23 #89 of 607 | 22 #512 of 674 | 21 #66 of 636 |20 #253/664 |19 #233/645 |18 #150/493 |17 #516/647 |16 #121/610 |15 #18/552 |14 #225/503 |13 #383/433 |12 #366/410 |11 #113/369 |10 #53/282
User avatar
danwhite77
Posts: 421
Joined: Thu Mar 08, 2012 8:21 am

Re: Capital One Online Savings

Post by danwhite77 »

I moved from CapOne 360 to Ally years ago and I've been very happy. It was a pain to move the money around but worth the hassle.
"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'.
Angelus359
Posts: 846
Joined: Mon Mar 03, 2014 11:56 pm

Re: Capital One Online Savings

Post by Angelus359 »

You really need to have exotically high expenses to have checking account interest really matter

Put your money in savings/CD/bond/stocks instead
Systems Engineer
User avatar
Kenster1
Posts: 3225
Joined: Wed Feb 28, 2007 9:50 pm

Re: Capital One Online Savings

Post by Kenster1 »

Angelus359 wrote:You really need to have exotically high expenses to have checking account interest really matter

Put your money in savings/CD/bond/stocks instead
Exactly! You need to hold >$50k at Capital One Checking to get 0.75% interest - why hold that much cash in a Checking account when you can link to other Savings accounts offering 1% APY or perhaps invest in other things.
SURGEON GENERAL'S WARNING: Any overconfidence in your investing ability, willingness and need to take risk may be hazardous to your health.
User avatar
Kenster1
Posts: 3225
Joined: Wed Feb 28, 2007 9:50 pm

Re: Capital One Online Savings

Post by Kenster1 »

SrGrumpy wrote:
signewton wrote:Does ally offer atm deposits at this time?

How long are their hold times for cash/check deposits?

Does ally do hardpulls or softpulls?
1. No, according to the Deposits FAQ, https://www.ally.com/help/
2. You mean when is the money available to you? Depends - see also the Deposits FAQ
3. Soft pulls.

I should also add that Ally offers free Webroot virus protection, worth about $60
That's why it can be handy sometimes when using online banks to use them in conjunction with having a Checking Account at a local bank/credit union if you really see the need for cash deposits. Your Credit Union doesn't even have to be local as cited in this example below...

https://www.depositaccounts.com/blog/20 ... banks.html
Alliant Credit Union is one of many credit unions that has partnered with the ATM CO-OP Network, and this gives the credit union members access to many deposit-taking ATMs across the nation.

The ATM CO-OP Network gives credit unions an advantage over several internet banks which do not allow deposits to be made via ATMs.
So Alliant Credit Union is one example where users across the country have cited not only great online banking service but can also can deposit cash or checks at certain deposit-accepting ATMs around the nation.

Alliant customers have also cited that they can also even use US Bank ATMs for free and can deposit checks/cash into their Alliant Credit Union accounts - along with many other deposit-taking ATM choices.
Bill in Wisconsin (anonymous) | Oct 9, 2012 |
I am a customer of Alliant Credit Union and would agree with you that it has one of the best checking accounts out there. Besides offering a reasonably high interest rate on savings and checking accounts, it offers 2 advantages that I especially like: ATM deposits at my local US Bank through the MoneyPass system, as well as their lightening-fast ACH transfers.

I'm able to deposit cash and/or checks using a US Bank deposit envelope into my Alliant Credit Union checking account, and when I check my account online, I see that Alliant CU has given me immediate availability to my funds!

You mentioned the possibility of the ATM machine to malfunction when making deposits, but I have never experienced this happening...and I've been using an ATM machine for making deposits at various banks over the past couple decades. Yes, there are times that an ATM may be offline and you'll have to find another one, but never has an ATM not functioned correctly for me if it is online.

The second advantage to Alliant Credit Union is ACH transfers. A customer can add several external banks, and if the transfer request (both deposit and withdrawal) is entered before the day's deadline (which I think is 11 a.m. CT), the transfer is made the very next day. No more 2, 3, or 4 day lag times as experienced with many other online banks' ACH transfer systems.
SURGEON GENERAL'S WARNING: Any overconfidence in your investing ability, willingness and need to take risk may be hazardous to your health.
Dandy
Posts: 6701
Joined: Sun Apr 25, 2010 7:42 pm

Re: Capital One Online Savings

Post by Dandy »

Ally Bank is becoming more like a typical on line bank. The used to have a 3 month early withdrawal fee on all their CDs now that option is not available on longer CDs, they used to pay almost the highest rates on CDs now they are decent, they used to pay 40 basis points on checking but now only 10, they used to have no tiers on their accounts now they have added them (wait for them to make lower balances much less attractive). As noted they raised some fees in line with other banks. So, they are still pretty good for an on line bank - pay 1% on savings for example but they used to be much better than almost all online banks.

I had CDs there until recently especially when they had a 3 month penalty for early withdrawal, Was considering checking until they dropped to 10 basis points unless you had more than 15K in the account. both my daughters have Ally checking and I have heard no complaints. I never had a service problem. I had Ally and Discover when my last CD at Ally matured I just kept Discover didn't need 2 online banks and Discover is pretty good.
SrGrumpy
Posts: 1477
Joined: Wed Aug 05, 2015 3:21 pm

Re: Capital One Online Savings

Post by SrGrumpy »

Dandy wrote:Ally Bank ... used to pay almost the highest rates on CDs now they are decent.

Possibly indecent. I mindlessly set up a ladder of 4-year raise-your-rate CDs there, and just realized I am fleecing myself - 1.4%. I could be at or near 2% elsewhere. Even my local credit union is offering 1.65%.
Dandy
Posts: 6701
Joined: Sun Apr 25, 2010 7:42 pm

Re: Capital One Online Savings

Post by Dandy »

I mindlessly set up a ladder of 4-year raise-your-rate CDs there

Those type of CDs always seemed like a bad idea. You really need to get a nice interest rate bump early in the term to make it pay off. I guess with the 4 year you need 2 relatively good bumps early. Truthfully, I haven't done the math but that is my impression.
SrGrumpy
Posts: 1477
Joined: Wed Aug 05, 2015 3:21 pm

Re: Capital One Online Savings

Post by SrGrumpy »

Dandy wrote:I mindlessly set up a ladder of 4-year raise-your-rate CDs there

Those type of CDs always seemed like a bad idea. You really need to get a nice interest rate bump early in the term to make it pay off. I guess with the 4 year you need 2 relatively good bumps early. Truthfully, I haven't done the math but that is my impression.
I think so. Those CDs give you a sense of control, empowerment. All that feelgood rubbish.
User avatar
Kevin M
Posts: 15789
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Capital One Online Savings

Post by Kevin M »

Ally Bank is fine. Have been using it as my hub bank for several years, and am quite happy with it. Used to buy CDs there, but their CD rates are not quite at top tier, so not reinvesting maturing CD proceeds in Ally Bank CDs. APY on savings of 1% is pretty competitive, and you earn 0.6% on checking if keep more than $15K in it (0.1% otherwise). Very easy to open accounts, and easy to get things done with online chat instead of phone.

In recent months I opened a Capital One 360 savings account for the $500 bonus. Probably will not leave money there once I receive the bonus, as 0.75% is not competitive. One negative is that POD accounts are not available, but an offsetting positive is that it is easy to put the account in the name of your living trust, using only online banking functionality.

Also recently opened Synchrony Bank and Discover Bank savings accounts for the bonuses ($100 and $200, respectively).

I was already a Synchrony Bank customer anyway for the IRA CDs, and am happy with Synchrony Bank in general; one downside is that they do not offer checking accounts, so not good as a hub bank. APY on savings at 1.05% is competitive, so will leave money in savings there unless I need it for something else.

I probably won't leave money at Discover Bank once I collect the bonus, but at 0.95% they are pretty competitive. Haven't really evaluated this bank thoroughly.

Kevin
If I make a calculation error, #Cruncher probably will let me know.
Dandy
Posts: 6701
Joined: Sun Apr 25, 2010 7:42 pm

Re: Capital One Online Savings

Post by Dandy »

and you earn 0.6% on checking if keep more than $15K
The quote above was about Ally Bank checking. I was tempted but since savings are paying around 1% in a number of online banks why keep 15k in Ally checking to get .6% when you can get 1% in savings and if the money is needed in checking a few clicks and a day or so it is in checking.

I would like to get some interest in checking but haven't found the correct bank or credit union with a reasonably low minimum and no fee surprises - Alliant Credit Union sees the best -- have to master mobile check deposit first. Until then keep most in 1% savings at Discover and move to brick bank free checking when needed.
User avatar
Kevin M
Posts: 15789
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Capital One Online Savings

Post by Kevin M »

Dandy wrote:
and you earn 0.6% on checking if keep more than $15K
The quote above was about Ally Bank checking. I was tempted but since savings are paying around 1% in a number of online banks why keep 15k in Ally checking to get .6% when you can get 1% in savings and if the money is needed in checking a few clicks and a day or so it is in checking.
For me personally, I agree and I minimize the amount I keep in checking. I even schedule transfers from savings to checking to match-up with known bills being paid out of checking. I think I will do 3 or 4 transfers from savings to checking this month.

Where I've decided to keep more than $15K in Ally checking is for my 85-year old mom and step-dad, since simplicity and error-proofing is more important than earning an extra 0.4% on $15K ($60/year, $5/month).

I used to use a reward checking account to pay bills. Since my RCA earns 3% on up to $15K, it's easier to pay bills from the RCA, and top it off once or twice per month from my Ally savings account. However, after the previous RCA I was using to pay bills stopped being an RCA, and it was maybe the 2nd or 3rd time in the last few years I've switched RCAs that I pay bills from (as each RCA stopped being attractive), I decided to switch my bill payments to my Ally checking account. I now use the RCA just for the 10 small purchases each month required to meet the criteria to earn the 3% rate.

So for the first $15K, I really like my RCA, and find it trivially easy to use, but most of the next tier of liquid cash sits in a 1% savings accounts.

Kevin
If I make a calculation error, #Cruncher probably will let me know.
Dandy
Posts: 6701
Joined: Sun Apr 25, 2010 7:42 pm

Re: Capital One Online Savings

Post by Dandy »

Where I've decided to keep more than $15K in Ally checking is for my 85-year old mom and step-dad, since simplicity and error-proofing is more important than earning an extra 0.4% on $15K
Makes perfect sense. I was wondering why since you seem to be very sharp on getting good returns. Having managed accounts for parents and in laws - keeping it simple is very important.
User avatar
Kenster1
Posts: 3225
Joined: Wed Feb 28, 2007 9:50 pm

Re: Capital One Online Savings

Post by Kenster1 »

But wow what a change to banking these days versus the days when we were little kids - 25, 30 or 40+ years ago.

I remember the Friday paydays when I would accompany my dad after work to make deposits at the local bank - wow, I swear it was like a 30-45 minutes process at a minimum as there were long lines and everyone had those Bank books where you'd get stamped or the bank printer would print your transactions and balances into the little Bank book. How times have changed.

But I was happy back then, after my dad got some cash out during payday - we'd end up going somewhere like Pizza Hut, the local mall or a Burger & Fries joint to grab some dinner.
SURGEON GENERAL'S WARNING: Any overconfidence in your investing ability, willingness and need to take risk may be hazardous to your health.
bugle
Posts: 8
Joined: Wed Jul 08, 2015 10:25 pm

Re: Capital One Online Savings

Post by bugle »

I recently participated in a paid research interview in which CapitalOne 360 tested marketing material for balance tiers. The copy they were testing advertised a .75% rate for balances under $10,000 and 1.2% for those over $10,000. They also tested reactions to a scheme where monthly deposits of $200 earned you some kind of bonus. IIRC, the bonus was a 1.2% rate in an account that otherwise paid .75%. FWIW.

My money is with Barclays, which offers the same rate and many of the same features as Ally but for some reason is not as popular with Bogleheads.
User avatar
Kenster1
Posts: 3225
Joined: Wed Feb 28, 2007 9:50 pm

Re: Capital One Online Savings

Post by Kenster1 »

bugle wrote:My money is with Barclays, which offers the same rate and many of the same features as Ally but for some reason is not as popular with Bogleheads.
Barclays Online Savings Account is still a good option - they are a big established bank - and are offering a competitive 1% APY matching the other top online saving bank rates.

They probably don't get as much fanfare because:
- it's just not as well known as far as their online saving account offerings - they are newer at this as far as high-rate online banking.
- cannot accept wires into the account. I thought that was an interesting restriction - maybe not a big deal for some but an issue for others who would like to have that option.
- I believe they still do not offer a mobile app - they didn't at least during this past summer. May or may not be a minor issue to some users.

Secondly, in the past - many Bogleheads and others out there were advocates of the HSBC Online Savings account - which was a big established global bank - they were offering some of the best savings rates for a number of years. Fast forward to the more recent years and they're now offering a measly 0.01% - 0.05% APY, effectively the same as any big brick & mortar bank.

In the past - I also had Online Savings account from Citibank - they also offered attractive rates and convenience if you already do banking with them. Again, poof, gone!

So perhaps many Bogleheads are a bit wary of a big established banks getting into the High-rate Online Savings Account rate only to fizzle away as we have seen before - that may not account for the sole reason but maybe it plays a role in the psyche. But otherwise - the Barclays Online Savings account is still a good, simple, straight-forward option that could work for many users and if anything changes like the high savings APY rate - then you can always move elsewhere.
SURGEON GENERAL'S WARNING: Any overconfidence in your investing ability, willingness and need to take risk may be hazardous to your health.
User avatar
Kevin M
Posts: 15789
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Capital One Online Savings

Post by Kevin M »

Dandy wrote:
Where I've decided to keep more than $15K in Ally checking is for my 85-year old mom and step-dad, since simplicity and error-proofing is more important than earning an extra 0.4% on $15K
Makes perfect sense. I was wondering why since you seem to be very sharp on getting good returns. Having managed accounts for parents and in laws - keeping it simple is very important.
Yes, it kind of goes against my grain, but having seen some of the mistakes already made, I came to realize that this is a case where it's worth paying a small premium for convenience and minimizing chance of errors. I already help them a lot with their finances, but don't want to spend as much time on theirs as I do on mine. Similarly, I don't encourage them to use a reward checking account, whereas for me it is second nature.

My standard spiel to friends on this is to either minimize amount kept in checking, or keep a little more than $15K in checking. The former is more work, but will save a few bucks. However, with overdraft protection, the former could be OK, but you'd have to keep your overdrafts plus other savings withdrawals to no more than six per month, and that is another potential source of errors. I do my savings -> checking transfers explicitly, but rely on overdraft protection in case of mental lapses (I think it's been hit once).

Kevin
If I make a calculation error, #Cruncher probably will let me know.
User avatar
Kevin M
Posts: 15789
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Capital One Online Savings

Post by Kevin M »

bugle wrote: My money is with Barclays, which offers the same rate and many of the same features as Ally but for some reason is not as popular with Bogleheads.
I have an account at Barclays, but only because a bought a couple of CDs there (from which I did early withdrawals to buy PenFed 5-year CDs at 3%, and incidentally, it was super easy to do). The thing is that Ally offers more comprehensive banking services. Barclays does not offer checking accounts nor IRA accounts. Ally Bank has it all, which is why it is a good hub bank.

Kevin
If I make a calculation error, #Cruncher probably will let me know.
tbradnc
Posts: 1532
Joined: Wed Apr 02, 2008 8:30 am

Re: Capital One Online Savings

Post by tbradnc »

I didn't read the entire thread but one big turn off for me is that Capital One only allows 3 linked external accounts. I think I've got around 10 or so with Ally.

p.s. American Express also limits you to 3.
User avatar
sperry8
Posts: 3065
Joined: Sat Mar 29, 2008 9:25 pm
Location: Miami FL

Re: Capital One Online Savings

Post by sperry8 »

tbradnc wrote:I didn't read the entire thread but one big turn off for me is that Capital One only allows 3 linked external accounts. I think I've got around 10 or so with Ally.

p.s. American Express also limits you to 3.
Right. This is why I love Ally. I have almost a dozen external accounts and use them as my ACH to pull/push to all the other online banks with ease. It's free and fast. And while the money is in Ally it earns a good APY. In this way I'm able to optimize interest rates across online banks easily.
BH Contests: 23 #89 of 607 | 22 #512 of 674 | 21 #66 of 636 |20 #253/664 |19 #233/645 |18 #150/493 |17 #516/647 |16 #121/610 |15 #18/552 |14 #225/503 |13 #383/433 |12 #366/410 |11 #113/369 |10 #53/282
User avatar
Kevin M
Posts: 15789
Joined: Mon Jun 29, 2009 3:24 pm
Contact:

Re: Capital One Online Savings

Post by Kevin M »

^Another good reason to use Ally Bank as one's hub bank. Having not pushed the limits of my other online banks, I didn't even realize that this could be a limitation with them.

Kevin
If I make a calculation error, #Cruncher probably will let me know.
Post Reply