Capital One Direct Banking - InterestPlus Online Savings

Average Score:

•   Very Competitive Rate if over $10K

  After a lot of comparison shopping I settled on Capital One's Online Savings account as it had the best rates I could find among major online banks (if your balance is over $10K).

  My experience with this account has been very positive. Really no major issues, was easy to setup, and the online banking through capital one's website is very convenient and easy to use. Transferring funds, reviewing your balance, its all straightforward, and if you have a Capital One credit card it minimizes the number of bank sites you have accounts at.

  I would say the primary downside to this account is that its not the most convenient if you need to access your money quickly - transfers take a few days, and unlike their High Yield Money Market account they don't give you checks and an ATM card. However, if you're stashing money there for the long term, this isn't a huge problem.

  Posted by Hentilson -- June 9, 2009

•   Won't get burned twice

  I had a really bad experience with Capital One's credit card customer service a few years ago to the point that I was almost stranded in South Africa. I canceled my card upon return to the states, so you could say I'm a little biased.

  So why would I check out their online savings account? Well, given the climate, I'm looking for a large bank with a good rate. Top of the list is GMAC, and with the current rates, Capital One is 2nd. My hope is that they've improved their operations in the past few years.

  From the information that I was able to collect from their website, the online savings account looked fine. No fees for normal usage, no minimum deposit amount, and a reasonable rate for balances over $10k (I don't have plans to dip below this).

  However, given my past experience, I gave them a call to be sure I got the whole story. The woman I got on the phone was a mildly helpful mid-western woman - unfortunately all too reminiscent of my earlier experiences. I asked a number of questions about the account, including their online banking site, and she mentioned that they aren't able to provide online statements, only paper. I was a little suspicious. When I hung up the phone, I re-checked the website, and sure enough, right on there it said "Online account statements." Frankly, I don't know who is right, but that's enough to reinforce my previous impression of Capital One, and stay away.
  

  Posted by TrvlnMn -- March 28, 2009