Thursday, January 23, 2014

Capital One 360 Savings Account Essay

This study aims at determining the fees and interest rates of my Capital One Savings Account.

The minimum balance amount is $0, meaning there are no consequences if balance falls below that amount. Capital One 360 allows a limit of 6 withdrawals for each calendar month. The consequences of exceeding the withdrawal limit several times can lead to closure of the account. Deposits have no restrictions, as an individual is required to collect a Certificate of Deposit declaring their deposit amount and specified timelines. The length of time given before an account is declared dormant is one year. If the account holder does not log in or call the company while there are no withdrawals or deposits, it is then declared dormant. There is no fee applied in this event.

There are no checking fees or monthly fees. It also comes with no minimum balance. This means there are no insufficient funds fees. Transfer from savings fee is at $25. The account earns interest at 0.20% P.A for a balance of $49,999.99 or less, 0.80% P.A for a balance between $50,000-$99,999.99, and 0.85% P.A for a balance of $100,000 or more. There are no restrictions on the account interest. However, the rate may alter if the balance reduces or increases.

There is no insufficient funds fee or use fee for the Capital One 360 debit card. Transfer from savings fee is $25.

Maximizing Returns
The APY for a Capital One 360 traditional savings account is 0.75%. The APY for a Capital One 360 money market account is 0.84%. The FV of $2,000 if held for 5 years in the traditional savings account is $75 while for the money market is $84. Therefore, my money works hardest for me while in the money market account.