Capital One Business Savings Review 2023
Tricia has nearly two decades of experience in commercial and federal government lending. Her expertise is highlighted throughout small business loan content on Fit Small Business.
Ricci Recto has two years of writing experience creating digital marketing content for finance clients. She specializes in business banking.
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 its services aren’t free, you can waive its $3 monthly fee easily by maintaining an average monthly balance of $300.
What We Like
- Highly rated mobile app
- 70,000 fee-free ATMs
- CDs also available
Drawbacks
- No branches outside Louisiana, Maryland, New Jersey, New York, Texas, Virginia, or Washington D.C.
- Applicants are required to visit a branch to open an account
- 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 | |
|---|---|---|---|---|
| 0.20% first 12 months, then standard variable APY | $3; can be waived | None at Capital One ATMs; $2 for out-of-network ATMs | $250 |
| 4.00% | None | No ATM card for savings accounts | None |
| 0.40% | $2; can be waived | 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 4.00%.
- You aren’t located near a Capital One Branch: You’re required to visit a physical Capital One branch to complete your business savings account application. There are locations 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.
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 | $250 |
|---|---|
Required Balance Minimum to Earn Interest | None |
Monthly Fee | $3 |
APY | 0.20% for the first 12 months, then standard variable APY applies |
Withdrawal Limit | 6 per month |
Automated Clearing House (ACH) Fees | None |
Wire Transfer Fees |
|
ATM Fees | None at Capital One ATMs, $2 for out-of-network ATMs |
Cash Deposits | Up to $5,000 per month free, then $1 fee per $1,000 after |
Open an Account |
| |
|---|---|
Debit Card | Free debit card |
Overdraft Protection | Free but requires enrollment |
Customer Service | For business accounts with access to a branch: (888) 755-2172, Mondays to Fridays, 8 a.m. to 8 p.m. For business accounts with digital access only: (844) 887-7275, Mondays to Fridays, 8 a.m. to 8 p.m. |
Other Products | Business checking, lending products, credit cards |
Capital One Business Savings Requirements
Only legal US residents aged 18 or over are allowed to apply for a Capital One Business Savings account. You’re required to visit a branch to open an account, and Capital One will require the following information:
- Personal information, including name, date of birth, and Social Security number
- Email address and phone number
- US address and owner establishment date (not a PO box)
- Legal name of business and type of business
- Business establishment date with signer’s full name
- Tax ID number, 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.
Corporation
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
S Corporation (S-corp)
Certified articles of incorporation or certificate of good standing and IRS Form SS-4/ CP575A or IRS Letter 147C
Limited Liability Company (LLC)
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
Series Limited Liability Company (SLLC)
Operating agreement for the series LLC and certified certificate of formation (managing LLC) and IRS Form SS-4/ CP575A or IRS Letter 147C
Low-profit LLC
Certified certificate of organization and IRS Form SS-4/ CP575A or IRS Letter 147C
Limited Liability Partnership (LLP)
Signed and dated partnership agreement or certified evidence of registration with secretary of state and IRS Form SS-4/ CP575A or IRS Letter 147C
General Partnership (GP)
Signed and dated partnership agreement or certified evidence of registration with secretary of state and IRS Form SS-4/ CP575A or IRS Letter 147C
Limited Partnership (LP)
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
Sole Proprietorship
No additional business documentation required
Unincorporated Association/Club
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
International Business Corporation
Certified articles of incorporation or certificate of good standing and IRS Form SS-4/ CP575A or IRS Letter 147C
Nonprofit Organization
Not-for-profit articles of inc (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
Trust/Estate
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.
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
Millions of reviewers on the App Store and Google Play have given the mobile app positive ratings. According to reviewers, the app is visually appealing and easy to navigate.
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.
Certificates of Deposit (CDs)
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.
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.
Business Credit Cards
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.
Lending Products
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
Escrow Express
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 sub-accounting 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.
Trade Credit
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 fraud risks.
Capital One Business Savings Pros & Cons
| PROS | CONS |
|---|---|
| Highly rated mobile app | APY lower than national average* |
| Full suite of banking services available | Only available in Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington, D.C. |
| Access to 70,000 fee-free ATMs | Must open an account in one of Capital One’s physical branches. |
*As of December 2022, the national average APY for savings accounts is 0.30%, according to the Federal Deposit Insurance Corporation (FDIC).
Capital One’s promotional APY of 0.20% is lower than the national average of 0.30%. When the promotional period ends, you’ll receive an even lower rate.
One of Capital One’s biggest weaknesses is accessibility. The bank is only available in Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington, D.C. Applicants are required to visit a branch to open an account. To compensate for having a smaller branch network, Capital One offers efficient digital banking services and access to more than 70,000 fee-free ATMs.
Capital One Business Savings User Reviews
| PROS | CONS |
|---|---|
| Good mobile app | Customer service |
| Easy online payments | Lack of transparency in policies |
| Decent rates | Shrinking branch presence |
Capital One has a rating of 1.2 out of 5 on Trustpilot, 3.5 out of 5 on DepositAccounts, and 3.7 out of 5 on WalletHub. Customers with good experiences claim that Capital One’s services are smooth and reliable. Many praised the bank’s app, which they said had a smooth interface that made online payments easy. Customers also like that the bank offers rates that keep up with current market conditions.
However, many reviewers complain of poor customer service. Reports of rude staff and unresolved banking issues are common. Additionally, many past customers claimed to have had their accounts locked or restricted without due explanation.
Many also complained about 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. This has been inconvenient for customers who prefer banking in person.
Alternatives To Capital One Business Savings
Although Capital One offers a great range of banking products, it may not meet your banking needs. If you want to take your money further, it may be best to look into an online-only provider. Today’s online banking solutions offer higher rates, lower fees, and additional cost-saving features.
Here are a few alternatives to consider:
- Live Oak Bank is best for high APY as it offers 4.00% APY on its business savings accounts. Interest compounds daily.
- NBKC Bank is best for ATM fee reimbursements. It refunds of up to $12 monthly on any surcharge fees you may incur at out-of-network ATMs.
- Bluevine* is best for earning interest on checking balances. In our list of the best free checking accounts for small businesses, we rated Bluevine the best for earning interest. Though the provider doesn’t offer a savings account, its checking account offers a 2.00% if you meet its activity requirements.
*Provider is a financial technology (fintech) platform backed by and FDIC-insured through a supporting bank partnership with Coastal Community Bank.
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 of unhelpful customer service.
