Capital One Business Savings Review 2023
This article is part of a larger series on Business Banking.
If you need a business savings account from a provider that offers both digital banking and in-person branch services, Capital One is a great option. The Capital One Business Advantage Savings account offers an introductory interest rate of 0.20% for your first 12 months, although balances must be between $300 and $5 million to qualify. Although its services aren’t free, you can easily waive its $3 monthly fee by maintaining an average monthly balance of $300.
What We Like
- Highly rated mobile app
- 70,000 fee-free ATMs
- Certificates of deposit (CDs)
Drawbacks
- No branches outside Louisiana, Maryland, New Jersey, New York, Texas, Virginia, or Washington D.C.
- Low annual percentage yield (APY)
Features
- 0.20% promotional interest rate
- Six free withdrawals per monthly statement cycle
- Free Capital One ATM usage
- Overdraft coverage
- Mobile app
How Capital One Stacks Up With Its Competitors
APY | Monthly Fee | ATM Fee | Minimum Opening Deposit | |
|---|---|---|---|---|
Business Advantage Savings | 0.20% first 12 months, then standard variable APY | $3; waivable | None at Capital One ATMs; $2 for out-of-network ATMs | $250 |
 Business Savings | 4.00% | None | No ATM card for savings accounts | None |
 Regular Savings | 0.90% | $2; waivable | None charged by First Internet Bank* | $100 |
*First Internet Bank will reimburse United States-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 several branches across the country, with most locations concentrated in Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington, D.C.
- Your business works with cash regularly: With 70,000 ATMs across the country, Capital One is a good fit for businesses that frequently withdraw cash. Additionally, the Capital One Business 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 want to earn interest at competitive rates: 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 an APY of 4.0%. Our review of Live Oak Bank Business Savings provides more product details.
- You require in-person banking and aren’t located near a Capital One branch: Capital One branch locations are in Virginia, Texas, New York, New Jersey, Maryland, Louisiana, and Washington, D.C. If you live outside Capital One’s service areas, Chase, which has branches in 48 states, might be a better option. Check out our Chase Platinum Business Checking review to see the bank’s available business savings products.
- You want fee-free wire transfers: For businesses receiving 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, domestic and international wire transfers are free. Read our Mercury Business Checking review to learn more about its fee-free features.
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
Capital One Business Savings Requirements
Only legal US residents age 18 or over are allowed to apply for a Capital One Business Savings account. Capital One reviews the applicant’s past account handling and verifies the information submitted.
You can start your application by filling out a form on the website. The bank will inform you if there’s a need to visit a branch to complete the account opening process, and it will require the following information:
- Personal information, such as 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.
Click on your business type below for a list of additional requirements.
Certified articles of incorporation or certificate of good standing or certificate of incorporation/formation/registration and IRS Form SS-4/ CP 575A or IRS Letter 147C
Certified articles of incorporation or certificate of good standing and IRS Form SS-4/ CP575A or IRS Letter 147C
Certified articles of incorporation or certificate of formation/registration or certificate of good standing or signed and dated operating agreement and IRS Form SS-4/ CP575A or IRS Letter 147C
Operating agreement for the series LLC and certified certificate of formation (managing LLC) and IRS Form SS-4/ CP575A or IRS Letter 147C
Certified certificate of organization and IRS Form SS-4/ CP575A or IRS Letter 147C
Signed and dated partnership agreement or certified evidence of registration with secretary of state and IRS Form SS-4/ CP575A or IRS Letter 147C
Signed and dated partnership agreement or certified evidence of registration with secretary of state and IRS Form SS-4/ CP575A or IRS Letter 147C
Certified certificate of limited partnership (secretary of state) or signed and dated partnership agreement or certified evidence of registration with secretary of state or certified certificate of good standing and IRS Form SS-4/ CP575A or IRS Letter 147C
No additional business documentation required
Certified articles of organization or charter letter from national organization authorizing a local chapter (on organization’s letterhead) or recent meeting minutes (on organization’s letterhead) or signed and dated formal written agreement or bylaws and IRS Form SS-4/ CP575A or IRS Letter 147C
Certified articles of incorporation or certificate of good standing and IRS Form SS-4/ CP575A or IRS Letter 147C
Not-for-profit articles of incorporation (if incorporated) or recent meeting minutes (on organization’s letterhead) and IRS Form SS-4/ CP575A or IRS Letter 147C and IRS Determination Letter 501(c)(3) or Letter of tax-exempt
Documents based on entity type and certificate of trust
For a downloadable checklist of documents banks typically require, refer to our guide on how to open a business bank account.
Capital One Business Savings Features
Promotional Interest Rate
For the first 12 months, Capital One will pay you a high-yield introductory interest rate on balances under $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.
The interest compounds and credits every month. The promotional interest rate is available only to new accounts and doesn’t apply to converted accounts.
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.
Digital Banking
You can bank digitally through the Capital One website and the Capital One mobile app, available on iOS and Android. Through digital banking, you can
- View balances
- Export statements
- Pay bills and loans
- Redeem rewards
- Activate credit and debit cards,
- Send and receive money through Zelle
- Perform mobile check deposits
Millions of reviewers on the App Store1 and Google Play2 have given the mobile app positive ratings. According to reviewers, the app is visually appealing and easy to navigate. Several also stated that they find it superior to the apps of competitors since access is quick, bugs are fixed, and payment features are convenient. A few who gave negative feedback mentioned they experienced password login issues.
Overdraft Coverage
You can link your savings account to your Capital One checking for free to protect yourself from overdraft fees. If you overdraft your checking account, Capital One will pull funds automatically from your savings account to cover the cost.
Other Capital One Business Products
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.
In our list of the best checking accounts for small businesses, we named Capital One Basic Checking as the best choice for unlimited everyday transactions. There are no fees or limits for digital transactions. Check out our Capital One Business Checking review to learn more about its features.
Capital One also offers business CDs. However, applicants can only access CD information by speaking to a Branch Ambassador at a Capital One branch.
Capital One business credit cards are protected under the $0 Liability Policy. They come with a number of account management and business management features. The bank lets you pick your own monthly due dates and set up automatic payments. You can also issue employee cards and customize transaction limits to control spending.
See our roundup of the best capital one business credit cards to learn which one fits your business needs.
Capital One offers real estate term loans, SBA loans, and lines of credit, all with flexible lending terms:
- Real estate term loans: These are fixed-term loans for purchasing, refinancing, or improving property; loans can be worth up to $5 million and 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.
Learn about what a business line of credit is and how it works. Our article also covers who should consider it, its pros and cons, and how to choose one.
If you want to manage risk and ensure due diligence in business transactions, you 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 subaccounting functionality for escrow agents and other businesses.
Capital One’s Intellix Platform gives you 24/7 access to your Escrow Express account. Through digital banking, you 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 Worldpay, Capital One Merchant Services provides businesses in different industries (professional services, manufacturing, healthcare, restaurants, retail, ecommerce, and construction) access to payment solutions. You can receive credit cards, debit cards, gift cards, and loyalty cards and select from multiple point-of-sale (POS) terminal options.
Through Trade Credit, Capital One’s business-to-business (B2B) credit program, you can give your B2B customers buy-now-pay-later (BNPL) options. These solutions give your clients more time to pay while keeping your access to profit. Trade Credit improves the predictability of cash flow and reduces non-payment and fraud risks.
Read our guide to BNPL to learn how it can benefit your business.
Capital One Business Savings User Reviews
The bank has low to average ratings on third-party sites. There are no Capital One Business Savings reviews specifically, though customers like that the bank offers personal savings and CD rates that keep up with current market conditions. Many praised its app, which they said has a smooth interface that made online payments easy. Customers with good experiences also claim that Capital One’s services are smooth and reliable.
However, users also frequently mentioned the lack of customer service support. Many complained of poor service; reports of rude staff and unresolved banking issues are common. Several also stated that they had their accounts locked or restricted without due explanation.
There are also numerous reviews highlighting Capital One’s shrinking branch presence. In the past few years, the bank has been closing dozens of its brick-and-mortar stores in favor of strengthening its digital banking offerings. According to customers, this has been inconvenient for those who prefer banking in person.
Here are the bank’s scores on third-party sites:
- Trustpilot3: 1.3 out of 5 with more than 1,900 reviews
- DepositAccounts4: 3 out of 5 from more than 500 reviews
- WalletHub5: 3.7 out of 5 from more than 900 reviews
Bottom Line
If you want a bank that provides both in-person branch access and reliable digital banking services, Capital One is a good place to put your savings. However, the bank’s business savings rates fall short compared to other online banks in the market. Additionally, a significant percentage of customer reviews complain about the lack of customer service support.
User review resources:
1App Store
2Google Play
3Trustpilot
4DepositAccounts
5WalletHub
