Capital One 360 shaking up savings accounts

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Ice-9
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Capital One 360 shaking up savings accounts

Post by Ice-9 » Thu Sep 19, 2019 1:46 pm

Capital One 360 is the current online bank that formerly was ING Direct before Capital One took over their US business. Capital One 360 Savings Accounts no longer earn a competitive rate - just 1.0%. They have for at least a couple of years offered a Money Market Savings Account that does offer a competitve rate, but requires a high minimum balance - I think it was $15k.

I just got off the phone with a customer service rep who told me:
* Capital One 360 will no longer be offering the Online Savings Account nor Money Market Savings Account to new customers
* Instead they will be offering 360 Performance Savings Accounts. Currently 1.9% (slightly lower than the money market) but no minimum
* Customers with the old-style accounts are not automatically switched - They must manually create a new Performance account and transfer money in

This was news to me. Is anybody else here already familiar with these new 360 Performance accounts? Is it really all the rules of the old Savings account but with a higher rate? I'm curious why they created a new type of account and didn't simply raise the rate of the old Savings account, but the rep insisted there was no difference other than the higher rate.

https://www.capitalone.com/bank/savings ... s-account/

anon_investor
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Re: Capital One 360 shaking up savings accounts

Post by anon_investor » Thu Sep 19, 2019 1:52 pm

Interesting. I left Capital One 360 a while ago after their rates became really not competitive. I had them from Orange days (even before ING Direct). Wonder if they will lower their 1.9% rate now that the Fed just lowered rates. 1.9% right now is on the lower end, matches Ally, but there are many other banks that are more.

boglenomics
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Re: Capital One 360 shaking up savings accounts

Post by boglenomics » Thu Sep 19, 2019 6:02 pm

Another thing to note is that customers who have the Money Market account have been dropped to the 1.9% rate but must still keep $10k in the account to earn that rate. I have switched those over to the performance savings. Capital One doesn't have the best rate but they have great customer support and IT so I'm willing to pay a little more for that and they're close enough currently.

cheesepep
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Re: Capital One 360 shaking up savings accounts

Post by cheesepep » Thu Sep 19, 2019 6:38 pm

Much thanks to you for this information. The last few years, I have been reluctant to open new accounts to receive higher interest or bonus, but recently have been invigorated to do so.

I had planned on leaving CapitalOne due to their less than stellar customer service for me, but due to the huge bonus I often get from them, I decided to stay, but just curtail some purchases from them and onto my Apple Card.

I previously had a CapitalOne savings account earning 1% and, as you have said, earning a pitiful interest rate, much less than competitors for some time now. Upon reading your post, I decided to open a 360 Performance account and just put all my money in they regular savings account into the 360 account. Happy. The extra interest earned each month will go in paying my CapitalOne credit card off. (Before, I had paid off my CapitalOne credit card using my Chase checking account earning 0% interest which is stupid.)

azianbob
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Re: Capital One 360 shaking up savings accounts

Post by azianbob » Thu Sep 19, 2019 6:47 pm

I feel banks sometimes create new account types in hopes the people are lazy and keep their money in the old account that earns less. While they can advertise the higher rates of the new account. CIT bank does this a lot …

boglenomics
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Re: Capital One 360 shaking up savings accounts

Post by boglenomics » Thu Sep 19, 2019 7:17 pm

azianbob wrote:
Thu Sep 19, 2019 6:47 pm
I feel banks sometimes create new account types in hopes the people are lazy and keep their money in the old account that earns less. While they can advertise the higher rates of the new account. CIT bank does this a lot …
They should have just migrated all accounts to this new one since it's better in every way. Had to fill out an application and make a phone call to get my account squared away so I could get rid of the $10k minimums.

I had a tax savings account for my quarterly payments that was better off in the old savings account at 1% because of the small balance and always struggled to keep my normal savings above the $10k as I started a policy of placing my cash needs in tax advantaged accounts.

As long as they don't cut down on their IT or support I'm alright with jumping through the occasional hoop. Their cafe is also great. Half price coffee and occasional free food!

Kennedy
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Re: Capital One 360 shaking up savings accounts

Post by Kennedy » Thu Sep 19, 2019 11:16 pm

Thanks for mentioning this. Do you know how many performance savings account one can have? I have multiple accounts of their other (older) savings account so I can segregate my money into categories.

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Re: Capital One 360 shaking up savings accounts

Post by Kennedy » Thu Sep 19, 2019 11:17 pm

azianbob wrote:
Thu Sep 19, 2019 6:47 pm
I feel banks sometimes create new account types in hopes the people are lazy and keep their money in the old account that earns less. While they can advertise the higher rates of the new account. CIT bank does this a lot …
Yes. Totally agree.

JD2775
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Re: Capital One 360 shaking up savings accounts

Post by JD2775 » Fri Sep 20, 2019 10:12 am

So those of us (like myself) with a current 360 MM account....do we HAVE to switch to the new account? Or can we just keep it as is? Any idea?

finfire
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Re: Capital One 360 shaking up savings accounts

Post by finfire » Fri Sep 20, 2019 10:22 am

Is it FDIC insured?

It looks like the 360MM has a similar interest rate and is FDIC insured. Any reason not to go with this over the savings account?

conservativeinvestor
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Re: Capital One 360 shaking up savings accounts

Post by conservativeinvestor » Fri Sep 20, 2019 10:34 am

I also didn't know about any of these changes and have the current money market account I did notice that it dropped from 2% to 1.9%

It sounds like there is no longer a benefit to keeping the money market account if the regular rate is going to be the same but not require the $10K minimum.

I also wonder as an above poster did, why they just don't put everyone into the new account if they are all going to be the same anyway.

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Re: Capital One 360 shaking up savings accounts

Post by bloom2708 » Fri Sep 20, 2019 10:46 am

I closed our Capital One 360 accounts a few years ago.

We keep a small amount in the Personal Capital Cash account I opened. The rate went from 2.1% to 1.8% yesterday.

Still better than our local brick and mortar bank. .1% on Savings and money markets.
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Re: Capital One 360 shaking up savings accounts

Post by RickBoglehead » Fri Sep 20, 2019 10:54 am

finfire wrote:
Fri Sep 20, 2019 10:22 am
Is it FDIC insured?

It looks like the 360MM has a similar interest rate and is FDIC insured. Any reason not to go with this over the savings account?
It's a bank account at an FDIC insured bank. The landing page clearly states that the accounts are FDIC insured. No reason not to pick new account.
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Ice-9
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Re: Capital One 360 shaking up savings accounts

Post by Ice-9 » Fri Sep 20, 2019 11:12 am

Kennedy wrote:
Thu Sep 19, 2019 11:16 pm
Thanks for mentioning this. Do you know how many performance savings account one can have? I have multiple accounts of their other (older) savings account so I can segregate my money into categories.
I actually asked about this because I also have multiple of the old style account from the ING Direct days. The rep told me the maximum number of Savings products per customer is 25, which I would guess means the different types of savings accounts and CDs. Thankfully, I only had four.

Another thing: After I opened my new Performance account, I notice the option to add a Joint account holder was missing. I called, and they said it was a glitch on the website and they could add the joint account holder over the phone.

mrmass
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Re: Capital One 360 shaking up savings accounts

Post by mrmass » Fri Sep 20, 2019 12:14 pm

I have the Money Market rate just dropped to 1.9% I use it as my hub account.

I only do 2-4 withdrawals per month. It looks like other than the minimum there isn't a difference between the MM and the new Performance Savings.

eagerinvester
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Re: Capital One 360 shaking up savings accounts

Post by eagerinvester » Sat Sep 21, 2019 1:07 pm

Interesting. Thanks for the info. May be worth a look around at other options. Has anyone heard of Brio Direct? They’re mentioned on a few different websites currently at a 2.45% APY, FDIC insured. I didn’t see any other threads mentioning it.

https://www.briodirectbanking.com/
https://www.doctorofcredit.com/high-int ... gs-to-get/
https://www.bankrate.com/banking/saving ... -accounts/

its4inthemorning
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Re: Capital One 360 shaking up savings accounts

Post by its4inthemorning » Sat Sep 28, 2019 10:52 am

Thanks for posting about these changes Ice-9, I would not have been aware otherwise.

I have a Capital One 360 on-line savings account. Does anyone know the procedure for opening a Capital One 360 on-line money market account and having my current savings balance transferred to it as the initial deposit?

TIA

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Re: Capital One 360 shaking up savings accounts

Post by magazinewriter » Sat Sep 28, 2019 11:10 am

I also thank the OP for posting these changes. I have kept my 360 savings account even with the poor interest rate because I only keep it for quick access to a small emergency fund. I had about six different accounts for things like health, household, new a/c etc. but I didn’t have a lot in each one so didn’t mind combining them into one 360 Performance account.

I had been drawing down the 360 for several years in part because there was no way to list a beneficiary, something I learned here on BH. I see that the new 360 Performance account does allow a beneficiary. I opened it online yesterday and transferred the money with no trouble.

cdu7
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Re: Capital One 360 shaking up savings accounts

Post by cdu7 » Sat Sep 28, 2019 11:19 am

Thanks for the heads up!

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Re: Capital One 360 shaking up savings accounts

Post by ivk5 » Sat Sep 28, 2019 1:44 pm

its4inthemorning wrote:
Sat Sep 28, 2019 10:52 am
Thanks for posting about these changes Ice-9, I would not have been aware otherwise.

I have a Capital One 360 on-line savings account. Does anyone know the procedure for opening a Capital One 360 on-line money market account and having my current savings balance transferred to it as the initial deposit?

TIA
My thanks to OP as well.

As to the above question: I found it trivial to open the n w account on Cap One’s website following their directions (when you sign in it will prefill most of your info) and fund it from existing account. Faster than posting on BH to ask how to do it. No special tricks needed.

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Re: Capital One 360 shaking up savings accounts

Post by DavidC » Sat Sep 28, 2019 4:34 pm

Kennedy wrote:
Thu Sep 19, 2019 11:17 pm
azianbob wrote:
Thu Sep 19, 2019 6:47 pm
I feel banks sometimes create new account types in hopes the people are lazy and keep their money in the old account that earns less. While they can advertise the higher rates of the new account. CIT bank does this a lot …
Yes. Totally agree.
In fact Capital One itself has did this in the past with its "Capital One Direct Banking" predecessor (their online bank they offered prior to acquiring ING Direct). In 2008 I opened a "Capital One Online Savings Account" but the rate began to drop... in the meantime they had created a new "Capital One InterestPlus Online Savings" account with a higher rate (plus a quarterly bonus). Conversion to the new account however was not automatic, you had to know and open the new account yourself.
In true boglehead fashion my chief concern is saving enough to withstand 7 consecutive biblical plagues. - TheNightsToCome

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Re: Capital One 360 shaking up savings accounts

Post by j0nnyg1984 » Sun Sep 29, 2019 8:57 am

Wow, I didn’t know about these changes either, and I was just in my account Friday transferring money. Crazy :oops:

Been with Orange / ING for a long time. Been thinking about moving for a while now, but they mail a check to my HOA monthly and it’s always worked flawlessly, so I’ve been reluctant to move. Once my last CD matures in June, I’ll probably reevaluate my position.

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Re: Capital One 360 shaking up savings accounts

Post by Chip Munk » Sun Sep 29, 2019 11:53 am

We have a Capital One 360 Money Market account that I use to hold 6-12 months of living expenses, with monthly transfers to our checking account at a brick and mortar bank. I have an ATM card for the Money Market account that I can use if we ever need some quick emergency cash. It looks like the new Performance Account does not allow ATM withdrawals. This is from Capital One's website:
You can withdraw your money from your 360 Performance Savings account online or at a branch, but not using an ATM.
Since I typically keep more than $10K in the account anyway, I've decided to stick with the Cap One Money Market account for now.

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Re: Capital One 360 shaking up savings accounts

Post by eagerinvester » Sun Sep 29, 2019 12:57 pm

Chip Munk wrote:
Sun Sep 29, 2019 11:53 am
We have a Capital One 360 Money Market account that I use to hold 6-12 months of living expenses, with monthly transfers to our checking account at a brick and mortar bank. I have an ATM card for the Money Market account that I can use if we ever need some quick emergency cash. It looks like the new Performance Account does not allow ATM withdrawals. This is from Capital One's website:
You can withdraw your money from your 360 Performance Savings account online or at a branch, but not using an ATM.
Since I typically keep more than $10K in the account anyway, I've decided to stick with the Cap One Money Market account for now.
You can solve this by opening a capital one checking account. Money between accounts within capital one transfers instantly. If you needed access to the savings account, you could transfer to checking and then use the checking card at an ATM.

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Chip Munk
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Re: Capital One 360 shaking up savings accounts

Post by Chip Munk » Sun Sep 29, 2019 1:48 pm

eagerinvester wrote:
Sun Sep 29, 2019 12:57 pm
Chip Munk wrote:
Sun Sep 29, 2019 11:53 am
We have a Capital One 360 Money Market account that I use to hold 6-12 months of living expenses, with monthly transfers to our checking account at a brick and mortar bank. I have an ATM card for the Money Market account that I can use if we ever need some quick emergency cash. It looks like the new Performance Account does not allow ATM withdrawals. This is from Capital One's website:
You can withdraw your money from your 360 Performance Savings account online or at a branch, but not using an ATM.
Since I typically keep more than $10K in the account anyway, I've decided to stick with the Cap One Money Market account for now.
You can solve this by opening a capital one checking account. Money between accounts within capital one transfers instantly. If you needed access to the savings account, you could transfer to checking and then use the checking card at an ATM.
Good point. Thanks!

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Re: Capital One 360 shaking up savings accounts

Post by iamlucky13 » Thu Oct 03, 2019 2:12 pm

azianbob wrote:
Thu Sep 19, 2019 6:47 pm
I feel banks sometimes create new account types in hopes the people are lazy and keep their money in the old account that earns less. While they can advertise the higher rates of the new account. CIT bank does this a lot …
Yes, they caught me that way on a previous round.

It took me an embarrassingly long time to realize when they rolled over us former ING customers to the CapitalOne system that they converted my ING money market account to a standard CapitalOne360 account, even though I had the minimum balance for the money market account.

Pushing me into the lower rate account was a bad strategy on their part though. I noticed it while I was preparing to move to Ally. Had I not noticed, it would have cost them a customer, and as is, convenience is the only reason I stayed.

With this latest change, however, it doesn't appear there is any rush to switch? Is the main reason why I might want to change from Money Market to Performance the lack of a minimum balance to get the best rate CapitalOne offers?

Alternately, is there any expectation that the Money Market account may retain some perks for existing customers?

seity
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Re: Capital One 360 shaking up savings accounts

Post by seity » Thu Oct 03, 2019 3:18 pm

I have a savings account at 360 with basically nothing in it and another for my son. It's a joint account, but he is the owner. I'm wondering how complicated it would be to open similar accounts at the higher rate?
Anyone who opened an account know if the application had information for creating a joint account like that?

LC Mike
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Re: Capital One 360 shaking up savings accounts

Post by LC Mike » Sat Oct 19, 2019 4:53 pm

I just opened one of these but was not able to add my wife because although she is joint owner on our capital one checking and savings accounts, she does not have a capital one 360 account. Seems strange to me and haven’t quite figured a way around this yet.

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Re: Capital One 360 shaking up savings accounts

Post by lazydavid » Sun Oct 20, 2019 7:39 am

bloom2708 wrote:
Fri Sep 20, 2019 10:46 am
We keep a small amount in the Personal Capital Cash account I opened. The rate went from 2.1% to 1.8% yesterday.

Still better than our local brick and mortar bank. .1% on Savings and money markets.
We do something similar. Our taxable account is at Wealthfront, so we use their cash account also. Was 2.25% when I opened it, currently 2.07%.

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Re: Capital One 360 shaking up savings accounts

Post by Ice-9 » Sun Oct 20, 2019 8:38 am

seity wrote:
Thu Oct 03, 2019 3:18 pm
I have a savings account at 360 with basically nothing in it and another for my son. It's a joint account, but he is the owner. I'm wondering how complicated it would be to open similar accounts at the higher rate?
Anyone who opened an account know if the application had information for creating a joint account like that?
LC Mike wrote:
Sat Oct 19, 2019 4:53 pm
I just opened one of these but was not able to add my wife because although she is joint owner on our capital one checking and savings accounts, she does not have a capital one 360 account. Seems strange to me and haven’t quite figured a way around this yet.
OP here. The first Performance account I opened a month ago was to replace our main savings account where money went before being used to pay bills. It had been a joint account with my wife, and I had the same problem as you when replacing it with a Performance account. The option to add joint account holder is listed for the older accounts but not the new Performance accounts. I called Capital One 360 support at 1-888-464-0727, and they said this was a glitch and they could do it over the phone. It immediately showed up in my account as a joint account, and my wife started seeing the new Performance account when she logged in two days later.

I was lazy and didn't recreate ALL of my old standard accounts as Performance accounts until two weeks later. There was another joint account, and I found at that time I still had to call in to make it a joint account at that time. Now that I hear two Bogleheads have experienced this issue recently, it seems fixing that glitch must not be a priority for Capital One, sadly.

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Re: Capital One 360 shaking up savings accounts

Post by AznSaver » Mon Oct 21, 2019 6:08 pm

Thanks OP for posting this... I have accounts from the old "Orange Days" and knew the rates were lower than they used to be.
But I didn't know about this new account shenanigans... all my older accounts were at .80% so I converted all 5 of my savings accounts to the new performance model for the 1.9% rate.

For those that haven't converted but want get the higher rate the process is easy, but somewhat annoying. I tried to call in and have them just convert the accounts, sadly that isn't an option. I had to clicky clicky the process of opening 5 new accounts individually, transfer the funds and then use the customer chat to have them close the old accounts.

Longtermgrowth
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Re: Capital One 360 shaking up savings accounts

Post by Longtermgrowth » Mon Oct 21, 2019 6:23 pm

They should automatically convert existing accounts to the new one if it's a better option for the customer.

I am not impressed with their constant account changes, forcing everyone to open new and close old accounts if they want the best rates/features :annoyed

anoop
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Re: Capital One 360 shaking up savings accounts

Post by anoop » Mon Oct 21, 2019 6:29 pm

Longtermgrowth wrote:
Mon Oct 21, 2019 6:23 pm
They should automatically convert existing accounts to the new one if it's a better option for the customer.

I am not impressed with their constant account changes, forcing everyone to open new and close old accounts if they want the best rates/features :annoyed
This is still better than Emigrant Bank which forces you to open accounts at different subsidiaries in order to get the best rate. At least here it's the same bank/website/userid/password/etc. Emigrant Bank started Emigrant Direct then started Dollar Savings Direct then started My Savings Direct.

I am no longer a rate chaser in that I decided to consolidate all my assets with a single brokerage and one B&M bank. Life is so much easier, and although I know I'm not getting the best possible returns, I think it's worth it for my situation.

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Re: Capital One 360 shaking up savings accounts

Post by AznSaver » Mon Oct 21, 2019 7:50 pm

For me many years ago it was about rates back in the ING days because investing had so many barriers back then... Now for me it's mainly about convenience. If want to grow my balances I look at putting funds in the market and not in bank accounts. The money I have in my Cap One savings are specifically purposed emergency accounts where liquidity is more important than returns.

The attached debit card has no foreign transaction fees so I would use it to pull out local currency at ATMs. This works amazingly in Japan, just find any 7-11, no fees and no markups on currency exchanges.

It is frustrating that that they would undercut they current/long-term customers and conversion wasn't automatic. Even with that it's not so offensive to cause me to pack up and leave at this time, maybe in the future or if I find something better that fits my needs.

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Re: Capital One 360 shaking up savings accounts

Post by criticalmass » Mon Oct 21, 2019 10:37 pm

I have several 360 Savings Accounts with fairly small balances and all of them have different interest rates, ranging from 0.92% to 1.24%. Go figure. Why is the different savings rates for the same product? I could see if the highest one had the highest rate, but that's not the case.

The 360 checking account says 0.0% interest (disclosure is higher), but I have less than $20 in the account.

My primary 360 savings account was opened with ING Direct, and the others were former Netbank accounts that ING Direct acquired with OTS's help when Netbank fell apart in 2007.

(Netbank had attempted to sell the banking business to Everbank (now TIAA Bank) a few months earlier, but Everbank cancelled when Netbank didn't have enough cash.)

If I become active with 360 again, I would switch to the Performance Savings account, but I'd worry they wither that rate too.

Emigrant did that nonsense twice, and Banco Popular d/b/a Popular Direct took it to an extreme by introducing new products every few months would good rates, but the old product would have its interest rate slashed. Naturally the interest rate sites and the bank's own website only show the current high interest product. Fool me once...

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