One of the bigger pieces of news in the world of banking and personal finance was the announced acquisition of ING Direct by Capital One in early 2012. In November of 2012, Capital One, N.A. and ING Direct legally became one bank.Since then, I have received updates about what is happening with my ING accounts, since I have a savings account, kids savings account, checking account, and a Sharebuilder account. From everything I’m receiving right now, it appears that Capital One 360 will operate very similarly to ING Direct.
What Will Change?
So far, the changes are mostly to names — and to the address at which you sign in to your account. Instead of signing in at the ING web site, you will go to capitalone360.com starting in February. The familiar orange colors will also be replaced by Capital One’s red and blue. Account terms, sign-ins, and everything else is supposed to be the same — for now.
One of the things that many ING customers have been concerned about is a change to the terms seen at ING. Yields have been somewhat competitive (although it’s been a while since ING yields were truly impressive when compared with other online banking options), and the customer service has always been pretty good. But what happens after six months or a year? Will Capital One 360 change then? Will Capital One slowly get rid of the perks that consumers are used to with ING?
Also, it’s important to note that since ING and Capital One, N.A. are the same bank legally, your FDIC coverage might change. If you have an account with ING, it’s now considered an account with Capital One, so you only have $250,000 in coverage combined. If you have been counting on the whole “separate banks” thing to help you remain covered, you might be in trouble if you have high account balances with both ING and Capital One.
Capital One 360 Offerings
What you get with Capital One 360 will look fairly familiar at first:
- 360 Savings: This savings account has a 0.75% APY right now. It was formerly the Orange Savings account. It has no fees and no minimums.
- CD: Instead of the Orange CD, Capital One 360 has just rebranded the CD as what it is — a CD, whether it’s a personal CD or a Business CD. There are a variety of reasonably competitive rates, depending on how much you add to the account, and the length of the term.
- Business Savings Account: If you have a business, you can open a savings account for that business. Nothing about this account changes. The APY is currently 0.40%, and there are no fees and minimums. You can designate up to three people to access the account.
- Kids and Teens: You can open a savings account for kids and a debit account for teens. These accounts retain their names (Kids Savings and MONEY). The kids savings account has a 0.75% APY, and the MONEY account earns 0.25% APY.
- 360 Checking: Electric Orange will be 360 Checking come February. This account features yields ranging from 0.20% to 0.85%, depending on how much you have in the account. You can send P2P payments, order checks, and get free ATM access at more than 35,000 machines across the country. You can also use a mobile app to deposit checks.
All in all, Capital One 360 will start out very similar to ING Direct. What happens in the future is anyone’s guess.