This article is part of a larger series on Business Banking.
If your business needs to invest in its future, Capital One’s Business Advantage Savings account can help you grow your excess income while providing both brick-and-mortar banking options and efficient digital banking solutions. Capital One offers an introductory interest rate of 0.20% for your first 12 months, although balances must be more than $300 and less than $5 million to qualify. Although Capital One’s services aren’t free, you can waive its $3 monthly fee easily by maintaining an average monthly balance of $300.
How Capital One Stacks Up With Its Competitors
Annual Percentage Yield (APY)
Minimum Opening Deposit
0.20% first 12 months, then standard variable APY
$3; can be waived
Free at Capital One ATMs;
$2 for out-of-network ATMs
Free at all Allpoint ATM networks
$2; can be waived
None charged by First Internet Bank*
*First Internet Bank will reimburse US-based ATM fees at a limit of $10 per month.
When Capital One Is a Good Fit
- You rely on in-person banking: As the eighth-largest consumer bank, Capital One has 755 branches across the country, with most of it concentrated in Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington, D.C.
- Your business works with cash regularly: Its 70,000 ATMs make it easy for business owners to withdraw cash. In addition, the Capital One Business Advantage Savings account has a free cash deposit limit of $5,000.
- You want access to full-service business banking: Capital One offers tiered business checking accounts, credit cards, lending products, including real estate term loans, Small Business Administration (SBA) loans, and lines of credit, escrow accounts, and merchant services.
When Capital One Is Not a Good Fit
- You’re looking for a more competitive interest rate: Compared to its competitors, Capital One’s APY rates are on the lower side. Live Oak Bank’s business savings account is our top choice for the best savings accounts for small businesses because it offers a high APY of 1.05%. Despite its competitive rates, it charges no monthly fees and only requires a minimum balance of 1 cent to maintain the account.
- You aren’t located near a Capital One Branch: Applicants are required to visit a physical Capital One branch to complete their business checking account applications. There are locations in Virginia, Texas, New York, New Jersey, Maryland, Louisiana, and Washington, D.C. If you aren’t near one, Chase may be a better option as it has branches in 48 states.
- You use your savings account to process wire transfers: For businesses that receive wire transfers regularly, Capital One’s $15 fee for incoming wire transfers can quickly add up. Sending wire transfers is even more expensive, with domestic wires costing $25 and international wires costing $40. Under the fintech solution Mercury, all domestic wire transfers are free, whereas international wire transfers are free when sent through Mercury’s structure.
If your small business meets these scenarios, see our guide to the best banks for small businesses for additional recommendations.
Capital One Business Savings Overview
Required Opening Deposit
Required Balance Minimum to Earn Interest
0.20% for the first 12 months, then standard variable APY applies
Six per month
Automated Clearing House (ACH) Fees
Wire Transfer Fees
Free at Capital One ATMs, $2 for out-of-network ATMs
Up to $5,000 per month free, then $1 fee per $1,000 after
Capital One Business Savings Requirements
Only legal United States residents aged 18 or over are allowed to apply for a Capital One Business Savings account. To apply, applicants must first fill out an application form with the following:
- Business name
- Annual revenue
- Applicant’s full name
- Applicant’s affiliation with business
- Email address
- Phone number
- Business ZIP code
The form is available both online and at Capital One’s physical branches. However, applicants are required to visit a branch to submit signatures and fund their accounts.
Following the completion of the application form, applicants must provide the following:
- Personal information like name, date of birth, and Social Security number
- Email address and phone number
- US address and owner establishment date, not a post office box
- Legal name of business and type of business
- Business establishment date with signer’s full name
- Tax identification number (TIN), ownership structure, and number of employees
- Percent of ownership and annual gross revenue
Capital One may request additional information and documentation, depending on business ownership structure and other factors. For a list of documents banks typically require, refer to our guide to opening a business bank account.
Capital One Business Savings Features
Capital One Business Advantage Savings comes with a 0.20% promotional APY rate, a waivable monthly fee, digital banking, and overdraft protection for linked checking accounts.
Promotional Interest Rate
For the first 12 months, account holders are guaranteed a 0.20% APY on balances of less than $5 million. The promotional rate expires 365 days after an account is opened. After which, standard variable APY rates will apply to the account’s entire balance. Rates vary by region and can change at any time without notice.
Waivable Monthly Fee
Capital One charges business savings accounts a $3 monthly fee. It can be waived by maintaining a minimum average monthly balance of $300.
Account holders can bank digitally through the Capital One website and the Capital One mobile app, available on iOS and Android. Through digital banking, they can view balances, export statements, pay bills and loans, redeem rewards, activate credit and debit cards, and send and receive money through Zelle.
When business owners link their Capital One checking accounts to their savings accounts, they can protect themselves from overdraft fees. If an account holder overdrafts their checking account, Capital One will pull funds automatically from their linked savings account.
Capital One also offers business CDs. However, applicants can only access CD information by speaking to a Branch Ambassador at a Capital One branch.
Other Capital One Business Products
Capital One Business Checking
Capital One offers two business checking accounts: Capital One Basic Checking for everyday businesses and Capital One Unlimited Checking for businesses with higher balances and larger transaction needs. Both come with free debit cards, overdraft coverage, digital banking, and online bill pay. Our list of the best checking accounts for small businesses names Capital One Basic Checking as the best choice for unlimited everyday transactions because it allows all users to make unlimited digital transactions fee-free.
Business Credit Cards
Capital One offers an extensive selection of business credit cards, each protected under the $0 Liability Policy. Capital One business credit cards come with several account management and business management features. Cardholders can pick their own monthly due dates and set up automatic payments while business owners can give their employees their own cards and set transaction limits to control spending.
Capital One offers real estate term loans, SBA loans, and lines of credit, all with flexible lending terms. Borrowers can use their business checking accounts to set up automatic loan payments.
- Real estate term loans: Businesses that need to purchase, refinance, or improve properties can take fixed-term loans worth up to $5 million. Term lengths can last as long as 20 years.
- SBA loans: Businesses that need longer terms, lower equity requirements, or fixed terms can connect with Capital One for SBA 504 and SBA 7(a) loans.
- Lines of credit: Capital One provides revolving lines of credit worth up to $5 million.
Capital One offers merchant services that empower businesses to process non-cash transactions. Capital One’s merchant services are powered by their partner, Worldpay from FIS, a debit and credit card processor that can accept Visa, MasterCard, Discover, American Express, EMV, PayPal, Apple Pay, Google Pay, and more.
Businesses that want to manage risk and ensure due diligence in business transactions can use Capital One’s Escrow Express sub-account to manage transaction funds. It offers three types of escrow accounts:
- Tenant Security manages tenant security deposits for property managers and landlords.
- Attorney Trust manages client funds for attorneys and law firms.
- Escrow Standard provides sub-accounting functionality for escrow agents and other businesses.
Capital One’s Intellix Platform gives customers 24/7 access to their Escrow Express accounts. Through digital banking, customers can pay interest, customize disbursement schedules, submit W-9s, and more. Capital One also provides account summaries and statements for in-depth account reporting.
Through Trade Credit, Capital One’s business-to-business (B2B) credit program, businesses can provide their B2B customers with buy-now-pay-later (BNPL) solutions. This gives the clients more time to pay while still supplying businesses with the funds they need. Trade Credit improves the predictability of cash flow and reduces nonpayment fraud risks.
Capital One Business Savings Pros & Cons
|Highly rated mobile app||Shrinking number of physical branches|
|Other banking services available||APY lower than other accounts in the market|
|Access to 70,000 fee-free ATMs||Must open an account in one of Capital One’s physical branches, which are limited|
Although Capital One offers in-person banking, its network of brick-and-mortar branches has dwindled through the years. Capital One went from having 944 branches in 2010 to 755 branches in 2022. However, ATM access remains top-notch, with 70,000 fee-free ATMs available.
To compensate for its shrinking branch network, Capital One offers efficient digital banking services. Millions of reviewers have given the Capital One mobile app positive ratings, often praising it for its user-friendliness and smooth functionality.
Alternatives to Capital One Business Savings
Although Capital One offers a great range of banking products, the APY rate on its savings account leaves much to be desired, especially compared to more competitive rates in the market. Here are three options to consider:
- Bluevine: Through this online-only bank, accounts with balances worth $100,000 and below can earn interest at a rate of 2.0%. To qualify for this rate, accounts need to make purchases worth $500 or more using the Bluevine debit card or receive payments worth $2,500 or greater using automated clearing house (ACH), wire transfer, mobile check deposit, or merchant payment processing.
- Live Oak Bank: If earning interest is a bigger priority than having access to physical banking, Live Oak Bank’s business savings account is a great business banking option. Its APY of 1.05% is one of the highest in today’s market. An account holder only needs to maintain a minimum balance of 1 cent to maintain a Live Oak Bank savings account.
- Prime Alliance Bank: Business owners who want more predictable APY rates can look into Prime Alliance Bank, which has a straightforward tiered APY system. Its starting APY is a competitive 0.45%, which increases to 0.65% once the account holds an average daily balance of $100,000, and then to 0.80% when the balance increases to $200,000.
If you want to place your business savings in an establishment that offers a full range of banking services, Capital One is a great choice. Although its interest rates aren’t as competitive as other banks, it stands out by providing the complete selection of tools businesses need: checking accounts, credit cards, lending products, and merchant services. With physical bank branches, extensive ATM access, and generous cash deposit limits, it’s also a good choice for businesses that deal with cash regularly.