Brief Look at Capital One
Capital One is a digital bank licensed by the Federal Deposit Insurance Corporation (FDIC). It provides the full list of online banking services and issues credit cards. You can open a checking account with a virtual card for free, and there is no monthly fee for the standard plastic card. The bank offers accounts for teens and kids, as well as savings accounts at 1.90% APY. The neobank does not charge an overdraft fee. The additional services include an integrated auto loan service. Capital One Bank also provides services to legal entities; there are special business accounts with automated accounting and tax reporting. Transfers inside the user’s country and to some other countries are free. Other commissions and fees are average in the market.
- A checking account and a virtual card are provided for free with all basic online banking features;
- Many types of credit cards and accounts for individuals and legal entities with extended service packages;
- Relatively low fees, no additional fees, fully transparent operation of the digital bank;
- No overdraft fee; there are several exclusive bonuses and unique offers;
- Accounts of every user are insured by FDIC; the insurance coverage is USD 250,000, including accounts with free plans;
- The digital bank offers an extended list of services for individuals, including selection of a beneficial auto loan;
- Legal entities are provided with modern-level online banking services with a high rate of automation.
- The digital bank provides services only in the U.S., Canada and the UK; the residents of other countries cannot open an account at the bank;
- Rather high fees for cash withdrawals from ATMs outside user’s country (USD 2 + 3% of the amount);
- Capital One Bank features an entire conglomerate of platforms and services and it is not easy to understand them right away, especially without experience with neobanks.
TU Expert Verdict
Chief Analytics Officer
Capital One offers digital banking services including free checking accounts with virtual cards, a range of credit cards such as Platinum Mastercard, Quicksilver One Rewards, and Venture Rewards, as well as integrated savings, auto loan, and mortgage options. All personal and business accounts are insured by the FDIC up to $250,000, and there is no monthly account or overdraft fee. Capital One provides access only to credit cards—except for a virtual debit card tied to the 360 Checking Account—while also supporting free domestic transfers and a user-friendly mobile app to manage accounts, set notifications, and review detailed statistics. Savings accounts deliver up to 1.90% APY with varied deposit terms.
Drawbacks include service availability restricted to users in the U.S., Canada, and the UK, relatively high fees for ATM cash withdrawals abroad at $2 plus 3% of the amount, and a somewhat complex set of products that may be confusing for those new to neobanks. Capital One suits individuals and businesses in its supported regions who are comfortable with digital banking and seek strong FDIC-backed protection, but does not accommodate users outside these core markets.
Capital One Summary
| 💼 Main types of accounts: | 360 Checking Account, Platinum Mastercard, Quicksilver One Rewards, Venture Rewards |
|---|---|
| 💱 Multi-currency account: | No |
| 💵 Deposit terms and conditions: | Up to 1.90% APY |
| 💳 Loan terms and conditions: | Floating rate up to 26.99% APR |
| ☂ Deposit insurance: | Yes, FDIC, USD 250,000 per client |
| 👛️ Savings options: | Account statistics, limits and notifications, savings accounts and instruments, interest-free overdraft |
| 📋 Types of payment: | All types of online and offline payments |
| ➕ Additional features: | Integrated investing services, auto loan and home mortgage services |
Capital One provides a lot more opportunities than the top digital banks in the U.S., Canada and the UK. These include integrated investing, auto loan and home mortgage services. However, Capital One has one important distinguishing feature – this neobank does not offer standard prepaid (debit) cards, only credit cards. At that, the bank issues Mastercard cards that are accepted at all ATMs around the world. Only the virtual card on the free account can be regarded as a debit card; it is the same as a standard debit card of any bank, but does not physically exist.
Capital One Commissions & Fees
Capital One does not charge an annual fee for 360 Checking Account and Platinum Mastercard. The annual fee for Quicksilver One Rewards is USD 39, Venture Rewards – USD 95. Most transactions are performed for free, including transfers inside the country (even if they are currency (forex) transfers). Transfers outside the country cost USD 2 + 3% of the transfer amount.
Note that the cost of additional options and services is calculated individually. For example, a client can order delivery of a paper receipt at nighttime for a fee. Auto loan and home mortgage services are provided for free, but the digital bank charges some percentage when the deal is closed (this information can be found out from a manager of customer support).
The table below shows comparison of basic fees of Capital One with fees of other digital banks.
| Broker | Overdraft fee | ATM Withdrawal Fee | International transfer fee | International exchange fee |
| Capital One | No | No withdrawal fee at 70,000 partner ATMs; at other ATMs, the fee is charged by the bank that owns them | USD 2 + 3% from the amount (outside user’s country and partner countries) | No, at the market rate |
| Chime Bank | No | No | No | 3% (max.$5) |
| Revolut | No | Up to $350 - free - beyond $350 - 2% | 0.3% (min. $0.30, max. $6) | From 0% to 1% |
Capital One Bank offers beneficial conditions in terms of the commissions and fees at the level of top competitors from the U.S., Canada and the UK. However, the international transfer fee of the bank is somewhat higher than average. At the same time, the digital bank does not charge fees on overdrafts, international exchange and ATM withdrawals (only the fee of the bank that owns the ATM is charged). Considering that the majority of the online banking options can be used for free, the conditions of Capital One are beneficial.
Account Types
Clients of the bank can separately open savings accounts. The conditions on savings accounts depend on the term of the deposit; the APY is from 0.30% to 1.90%. Also, clients can open accounts for an auto loan, and a home mortgage; plus there are accounts for businesses with all the features of corporate online banking.
Investment Options
The digital bank offers a separate service for those interested in investing. The service is called Capital One Investing. It allows you to invest in stocks, ETFs and options. Transparent fixed fees is one of the key advantages of the platform. For example, all stocks and funds cost USD 6.95 per transaction (buy or sell), options – USD 0.75 per contract.
The Portfolio Builder is another special feature of the service. It allows investors to set targets, and the system automatically builds a diversified portfolio of 8 ETFs to meet them. You can save up to 50% on buying such a portfolio, instead of selecting and buying funds on your own. Research and analysis instruments are standard.
Also the Share Builder feature is worth mentioning. You can use it to set up automated investing. For example, every week or month, the system will write off a specific amount from the specified account and distribute it among certain assets or portfolios. You can set up notifications in the mobile apps that will instantly inform you about important changes.
If you are a large investor and plan on investments over $10,000, contact us at vip-invest@tradersunion.com or by the feedback form on our website. Our professional team will take you through all the intricacies of the deal and all the steps from signing up to withdrawal of profits.
Overdrafts, loans, flexes
Capital One Bank does not charge an overdraft fee; the overdraft amount is determined individually; you can find out the amount in your Personal Account and in the mobile app of the digital bank. As for the loan conditions, they depend on the type of the credit card that the bank’s client ordered.
For example, there is no annual fee for the Platinum card, while the annual fee for Quicksilver is USD 39. The basic APR on a loan is 26.99%, which is one of the lowest indicators in the country. Note that the rate is floating. It can be reduced if you have a higher credit score or in some other cases (read more on the official website of the neobank, in the loans section).
The advantage of Capital One is that even if you are not a client of the bank, you can still check your credit score and find out whether you can get a loan there. If your credit score is too low, the bank will still allow you to open an account, but won’t always provide a credit card. At that, Capital One will also give advice to the user on how to improve their credit score and recommend the required instruments.
The auto loan feature deserves special mention as well. Capital One Bank offers its own auto loan service with various programs for financing a car purchase. You can set up the term of the loan, monthly payment and choose the best APR, including exclusive offers, which are not available outside the platform. The same applies to home mortgages with a possibility of refinancing.
Contacts
| Foundation date | 1994 |
|---|---|
| Official site | https://www.capitalone.com/ |
Detailed review of Capital One
Capital One Bank specializes in issuing loans. The accounts and cards of the neobank can be used for standard transactions, with all features of online banking available. In particular, you can fully control your finances from the mobile app. You can open an account, order a card, block it, make a transfer to another bank, including international transfers, in a few taps. Nonetheless, most features available to users are still focused on services of financing. These are consumer loans, auto loans and home mortgages. The bank has proprietary integrated services with exclusive conditions.
Capital One Bank in figures::
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1994 – year of establishment;
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70,000 – number of ATMs with free withdrawal;
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0% – annual fee for the standard account;
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Up to 1.90% – APY on a savings account;
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USD 250,000 – insurance coverage.
The important feature of Capital One is that the company is a member of the Federation Deposit Insurance Corporation (FDIC). It is an independent financial agency established by the US Congress to control the operation of commercial organizations. If a company is a member of the FDIC, it means it holds a valid license and has transparent reporting. In addition, FDIC members must insure the funds of their clients. For Capital One Bank, the insurance coverage is USD 250,000. It is a conceptual advantage of the bank, which focuses on loans and offers savings accounts to its clients.
Useful features by Capital One:
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Virtual card. Every client of the bank gets this card once he/she registers at the bank. The virtual card allows you to make transfers and shop online and also pay with a mobile phone at offline stores.
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International account. The clients of the bank are provided with an IBAN, which provides a possibility to make transfers to other banks around the world and also receive transfers from clients of these banks.
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Plastic card. A client of the digital bank can order a plastic credit card Mastercard, which is accepted everywhere in the world. Such a card can be ordered only if you have a free plan.
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Cash back. There is a 1.5% cash back on all purchases for Quicksilver One Rewards cards. Clients can receive cash back in cash, send it to their savings account or buy gift cards.
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Overdraft. If a client has a good credit history, the bank will allow him/her to write off more money than he/she has on the card when making an online or offline purchase. The overdraft is provided for free; you won’t have to pay interest for this small loan.
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Savings accounts. Depending on the account type, clients can make a deposit at different APY. The best option is to lock funds for a term of six months or longer at 1.90% APY.
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Traveler’s card. If you travel a lot, you can open a special card for traveling from the bank. You can receive up to 75,000 bonus miles if you regularly use the card to pay for goods and services.
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Special accounts. These include kid/teen accounts. They are nominally independent, but fully controlled by parents from the mobile app.
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Investing. Capital One has its own investing service. A client can buy and sell stocks, ETFs and options independently or use automated smart investing.
Advantages:
Free accounts. Capital One Bank has accounts without annual fee, with all basic features of online banking.
Savings accounts. Depending on the account type, deposits at up to 1.90% APY are available, which is one of the highest rates in the U.S. and Canada.
Insurance of funds. Since Capital One is a member of the FDIC, the funds of each client are insured for an amount of USD 250,000.
Zero-fee transactions. The majority of standard transactions, including transfers inside the country, are absolutely free.
Beneficial overdraft. The neobank provides interest-free overdraft. The overdraft amount depends on the client’s credit score.
Rating adjustment. Clients of the bank can monitor their credit score and receive recommendations on how to improve it.
Plastic card. Credit cards of the bank are of the Mastercard standard; they are accepted everywhere in the world. Cash withdrawal is free at 70,000 ATMs.
Auto loan. Capital One has its own auto loan service with low fees and exclusive offers.
Home mortgage. Also, Capital One offers a social platform for a home mortgage and mortgage refinancing.
Kid/Teen accounts. There are unique account types with savings programs, controlled by parents.
Quick verification. Document and identity verification takes very little time.
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