We'll spend a few minutes together and look at Capital One 360, it's a new online bank, let's find out if it makes sense for you to open up a business relationship. Before we get started, I just want to mention again I'm the owner of wealth pilgrim and I'm also a certified financial planner, you can feel free to connect with me on Facebook, Twitter or on the blog at wealth program, Capital One 360 is a relatively newcomer to the online bank environment, not exactly true, what happened is Capital One acquired ING Direct, ING Direct was one of the biggest online banks ever and the parent company was forced to sell ING, because they got a bailout in it's a European bank, and they were forced to divest ING, and Capital One was going to pick up the pieces, Capital One is a very big credit card company, and you can see their commercials all the time and they have some pretty snazzy credit card offers, but they wanted to expand their menu of available products and services, they can do more business, that's the idea, question is it worth it, obviously offer bank accounts CDs, savings, checking, and let's take a look at that.
First, the rates are not bad, especially if you buy deposit more than $50,000, the rates can be very competitive, if you have less than $50,000 in your account, you're not going to get very much interesting, but quite frankly within the whole space of online banks, the interest rate is so low that even if someone else is paying twice as much, it just doesn't matter the rates are so darn low, but you always more is better than less, so again if you're fifty thousand or more for checking savings or CV, you're going to get a very good rate, below that it's not.
What's nice about Capital One 360 is that there are no charges, there are no maintenance fees, minimum balances, that's all free, you do with them by your own checks, but they have a very good overdraft protection, which is where they do chart you to pay about 11 percent on an annualized basis for every month for any amounts that you overdrew, but you don't pay any penalties, so most banks will charge you 30 or 40 dollars for an overdrawn amount I own not with these, you'll pay interest, so I did some research on my site, you can see that if you're overdrawn by $100 for 10 days, the normal banks will charge you $31 for that, Capital One 360 is going to charge you about 31 cents, so for people who have problems keeping their balances above water, this is a very inexpensive way to do it.
They offer mortgages and this is actually something I was surprised by their mortgages, their rates are super competitive, and because they just refinanced my house, the cost of getting a loan are 40% below with the national averages, so it's very inexpensive to get a loan, and they have very good customer service and great ratings too, people have rated them very highly with their customer experience, so the mortgages are pretty good investment, they offer a share builder, the bottom line is the charts 695 for trading, you can have some other fancy trading going on, what's called the advantage account, but it's a lot of smoke and mirrors, to be honest, but 695 for trading is not bad, the only real advantage is that it's tied to your checking, savings, and CB, you can get those all tied together, so that's a good thing.
It also offers retirement accounts and business accounts, and there's nothing wrong with their offering, not a whole lot of excitement there, their customer service is very good, I made one phone call, I did have to push one to get to a human being, but once I did I had a great experience they have a referral and bonus program, if you deposit, if you get some people to pause it over $250, you're rewarded and the new person who opens up an account is rewarded.
I talk more about that on my site, in summary, Capital One 360 is decent, the only real claim to fame is that it's highly integrated, so you can use one bank in relationship and get a great many different products and services, I have a credit card with Capital One and I love it, because there are no foreign transaction fees and they have that benefit across the board, there's no transaction fees with anything for their banking or savings or checking or credit cards, so that's good, personally I don't think it's critical to have it all tied together, but if you do, it's great, I prefer to have a wonderful online bank, and there are better ones and you can read about that on my site, check out every bank especially there are better online trading experiences as well, but for someone who's willing not too interest in getting the best in each area but a convenient place to do business, it might be worth you to check into, so consider that if you have any questions or if you've had experience with Capital One 360, I would really like to hear about it, so drop me a line either through Twitter, Facebook or on my blog.