Online savings accounts, such as the Capital One 360 (formally ING Orange Savings) are great options to consider for short-term savings needs, emergency accounts, etc. They pay better interest versus traditional brick mortar banks because they don’t require the overhead. Their services are typically limited online business, phone and email to save on costs.
Overall, this approach to saving has been attractive to me as long as I know my savings is FDIC insured, easily accessible, and yields a better than competitive return. Finding a savings account with a competitive savings rate can make a difference when your savings starts to grow and especially when you have 3 – 6 months (or more) of emergency savings built up.
Capital One 360 Savings
You may or may not know that Capital One purchased ING Direct. What was once the ING Orange savings account is now called the Capital One 360 savings account. You can read more about the transition here, but overall, it’s been quite seamless for customers. You can still get the same customer service (they were included in the transition), competitive rates and online experience. Let’s take a closer look at some of the features.
No fees, no minimums and a competitive rate
The Capital One 360 savings account lets you save with no fees, no minimums and has a competitive saving rate (.75% as of this post). Deposits are also insured by the FDIC for up to $250,000 per depositor.
I nice benefit is that you can create an electronic link between your Capital One 360 savings account and your existing checking account and transfer money free of charge. Do keep in mind that federal regulations set a limit of 6 withdrawals per calendar month to your linked checking account or between Capital One 360 accounts. You can also set as many savings accounts as you want with Capital One. This is helpful when you want to split out savings goals and track them individually.
The Automatic Savings Plan
Also a nice feature is the automatic savings plan. You can schedule regular transfers so you don’t have to think about depositing your savings (highly recommended!). The automatic savings plan does the work for you. It generally takes 2 business days to transfer money between accounts.
How does interest accumulation work? According to the website, the interest is accrued daily, compounded monthly and credited to your available balance at the end of each month.
Easy Access to Money
How do you access your money? You can sign into your account 24/7 and transfer money in and out of it. You can also call and speak to a customer service representative during business hours for more options.
An important feature of any online account is the user interface and friendliness of the navigation. If you’re used to the ING Orange Savings interface, you’ll be pleased that everything has pretty much remained the same. The colors and branding seem to be the only thing that has changed.
Capital One has a mobile banking site as well as an app. The app provides many features including person 2 person payments, bumping money (sending money securely between phones), finding ATMs, and all the standard features of viewing account balances, transfers and depositing checks.
Account Set Up
Setting up a Capital One 360 savings account is quick, easy and secure. It involves entering standard information when signing up for an account, agreeing to the terms and conditions, validating an electronic deposit in your linked checking account and then completing the account opening process.
Overall, the Capital One 360 savings account is a good option to consider for your emergency or short-term savings needs and continues to serve our family well, even through the ING transition.