Thoughts on Capital One 360 Money Market account for use as checking account?

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radnor
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Thoughts on Capital One 360 Money Market account for use as checking account?

Post by radnor » Fri Mar 24, 2017 3:29 pm

The Capital One 360 Money Market account's APY of 1.00% is pretty attractive, and I'm trying to figure out if I can use it as a replacement for my existing checking account.

My requirements:
  • Be able to make (typically fewer than 6) transactions OUT of the account per month (this includes paying my credit card and buying Vanguard funds)
  • Receive direct deposit pay from work
Additionally, I may have miscellaneous other transactions in or out, but these are fairly rare.

Does anyone know if I can do all of this with a (i.e., this) money market account? Thanks!
Last edited by radnor on Fri Mar 24, 2017 4:15 pm, edited 1 time in total.

inbox788
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Re: Thoughts on Capital One 360 Money Market account for use as checking account?

Post by inbox788 » Fri Mar 24, 2017 3:46 pm

Unlikely. It's more like a savings account, and they're usually very serious with compliance with the 6 withdrawals/transactions a month.

It's probably simpler if you just user their checking account and budget, making minimal number of transfers out of the money market account. You can easily transfer any excess funds into the 1% money market account.

Alternatively, if you want to do the work, get a high yield checking account.

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radnor
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Re: Thoughts on Capital One 360 Money Market account for use as checking account?

Post by radnor » Fri Mar 24, 2017 3:59 pm

inbox788 wrote:Alternatively, if you want to do the work, get a high yield checking account.
What do you mean by "if you want to do the work?" I've looked for high-yield checking accounts in the best that I could find offered 0.60% APY.

onourway
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Re: Thoughts on Capital One 360 Money Market account for use as checking account?

Post by onourway » Fri Mar 24, 2017 4:15 pm

There are lots of checking accounts that offer between 2-5% if you jump through their hoops - things like minimum balances, minimum number of signature transactions every month, requirement to log in to your account monthly, etc.

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JoMoney
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Re: Thoughts on Capital One 360 Money Market account for use as checking account?

Post by JoMoney » Fri Mar 24, 2017 4:25 pm

Why not open a free Capital One 360 checking account (maybe even get a cash bonus to open one), and a Money Market ?
Then once a month transfer any excess from the checking to the Money Market...
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Re: Thoughts on Capital One 360 Money Market account for use as checking account?

Post by nisiprius » Fri Mar 24, 2017 5:24 pm

inbox788 wrote:...Unlikely. It's more like a savings account, and they're usually very serious with compliance with the 6 withdrawals/transactions a month...
Capital One, or it might have still been ING Direct, once did give me a slap on the wrist about this.I'd set up some automatic transfers that added up to a total of five a month, and after a couple months they contacted me and indicate they would close the account if I didn't stop doing it.
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Re: Thoughts on Capital One 360 Money Market account for use as checking account?

Post by Easy Rhino » Fri Mar 24, 2017 5:35 pm

That's weird, because 5 transactions is less than 6.

But also... can you write a check with the money market? It's old fashioned but occasinally necessary.

Assuming Capital One has language saying that transactions should be limited, then I just wouldn't use it as a transaction account. Not worth the hassle.

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Re: Thoughts on Capital One 360 Money Market account for use as checking account?

Post by Afty » Fri Mar 24, 2017 5:39 pm

I've also been hassled by Capital One 360 (savings) for doing more than 6 transfers in a month. They really are serious and will close your account over it.

I do what someone else suggested -- keep both Cap One 360 checking and money market accounts, and make all transactions from the checking account. I transfer money to/from the money market account as needed.

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Re: Thoughts on Capital One 360 Money Market account for use as checking account?

Post by Raybo » Fri Mar 24, 2017 5:49 pm

I was with ING before it was purchased by Capital One. I also had a free checking account with Washington Mutual before it was purchased by JP Morgan Chase. My approach is to move money from my Capital One account to my Chase account and write checks from there.

Chase will provide a free checking account if there is, at least, one $500 on-line transfer a month. I have set-up an automatic $500 transfer from Capital One to my Chase account (and reversed a week later) to meet their requirement for a free checking account.

I get no interest on the Chase account but I only keep enough money in there to pay my monthly bills, transferring into the Chase account as necessary.

I have never run afoul of the 6 transfers a month.
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Re: Thoughts on Capital One 360 Money Market account for use as checking account?

Post by centrifuge41 » Fri Mar 24, 2017 5:55 pm

I don't even think there's a billpay UI? At least not on the 360 Savings account. Why not grab both the Money Market and Checking? And put most money in Money Market, and a small chunk in Checking?

I have Savings and Checking with 360. But I moved most of my funds over to Discover, since they paid me $100 + $300 respectively to sign up, the APR was .95 instead of .75, and they pay a dime per billpay (or debit card swipe). Granted, Discover Cashback Checking's APR is .20% lower than Capital One 360's.

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Re: Thoughts on Capital One 360 Money Market account for use as checking account?

Post by inbox788 » Fri Mar 24, 2017 7:55 pm

radnor wrote:
inbox788 wrote:Alternatively, if you want to do the work, get a high yield checking account.
What do you mean by "if you want to do the work?" I've looked for high-yield checking accounts in the best that I could find offered 0.60% APY.
It goes by the other name Reward Checking. Be sure you understand the requirements to get the high interest rates and bonuses. Oftentimes they're burdensome or complex. I've never done it because of that.

https://www.depositaccounts.com/checkin ... ounts.html

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Re: Thoughts on Capital One 360 Money Market account for use as checking account?

Post by Toons » Fri Mar 24, 2017 8:00 pm

JoMoney wrote:Why not open a free Capital One 360 checking account (maybe even get a cash bonus to open one), and a Money Market ?
Then once a month transfer any excess from the checking to the Money Market...
+1
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Re: Thoughts on Capital One 360 Money Market account for use as checking account?

Post by Alto Astral » Fri Mar 24, 2017 8:18 pm

I am starting to do this partially with my 360 savings account (0.75%). Just 2 withdrawals / month: mortgage and my credit card used for most expenses. Maybe the occasional transfer to Vanguard Taxable. All other smaller credit card balance, utility bill etc from Chase. Maybe I'll move those to 360 Checking. 0.20% (360 checking) is still better than 0.01% (chase checking) You can probably do this strategy with the Money Market account (1%)

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Re: Thoughts on Capital One 360 Money Market account for use as checking account?

Post by inbox788 » Sat Mar 25, 2017 1:38 pm

Alto Astral wrote:I am starting to do this partially with my 360 savings account (0.75%). Just 2 withdrawals / month: mortgage and my credit card used for most expenses. Maybe the occasional transfer to Vanguard Taxable. All other smaller credit card balance, utility bill etc from Chase. Maybe I'll move those to 360 Checking. 0.20% (360 checking) is still better than 0.01% (chase checking) You can probably do this strategy with the Money Market account (1%)
Capital One 360 has had some stupid rates and thresholds. I still have $0.75 parked in the savings account right now (interest added after transfer). Before money market, I had over $50k parked there in a checking account for a short time (might have been over $100k, but I think the thresholds may have changed), and I was shuffling them between savings and checking to get the higher interest rate. Money market has made it simpler, but I still have 3 accounts there that I'd like to reduce to 1 if they were more sane about their rates. Still, since it's all at one institution, and its all one login, it's not so bad. Essentially, I was using their checking account like a savings account because the interest rate was better. I could have opened up an Ally savings account and gotten 1% instead of the 0.9% in the checking, but wasn't worth the extra paperwork to get an extra $0.30 a day. I might have made $20 to $50, but still have to pay taxes on it. If the difference in interest was more or this were a recurrent event, I would be more inclined to optimize and maximize.

Savings
No Minimum 0.75%

Money Market
$10,000 or more 1.00%

Checking
$50,000.00 – $99,999.99 0.75%
$100,000 or more 0.90%

For savings, choose between savings and money market depending on balance. For transactional account, just use a checking account here or elsewhere. Or if starting from scratch, Ally savings is 1% for all balances. Simpler.

https://www.ally.com/bank/online-savings-account/

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