Capital One is a retail bank that takes deposits and makes loans
Capital One Bank is a federally chartered bank owned by Capital One Financial Corporation. It takes deposits from customers in checking and savings accounts, and it lends money through credit cards, auto loans, home loans, and personal loans. The bank operates branches in most U.S. states and also offers online banking. It is insured by the Federal Deposit Insurance Corporation (FDIC), which means deposits up to $250,000 per account type are protected if the bank fails.
Capital One started as a credit card company in 1988 and added retail banking services over time. Today it is one of the largest banks in the United States by assets. The company makes money by charging interest on loans and fees on accounts, and by earning interest on the deposits customers place with them.
If you have a Capital One credit card, checking account, savings account, or loan, you are dealing with Capital One Bank or one of its subsidiaries. The bank's main competitors are other large retail banks like Chase, Bank of America, and Wells Fargo.
Key Takeaways
- Capital One Bank accepts deposits in checking and savings accounts and is FDIC-insured up to $250,000 per account type.
- The bank makes loans through credit cards, auto loans, mortgages, and personal loans, and earns money by charging interest and fees.
- You can bank with Capital One online, through mobile apps, or at physical branches in most states.
- Capital One is a publicly traded company and one of the largest banks in the United States by total assets.
How Capital One makes money from your account
Capital One earns money in two main ways: from the interest it charges on loans and from fees on deposit accounts. When you borrow money through a credit card or auto loan, you pay interest. That interest is Capital One's revenue. When you keep money in a savings account, Capital One pays you a small amount of interest—but the rate it pays you is lower than the rate it charges borrowers, so the difference is profit.
Capital One also charges fees on some accounts and services. Monthly maintenance fees, overdraft fees, wire transfer fees, and ATM fees all add to the bank's income. Some Capital One accounts have no monthly fee if you meet certain conditions, such as maintaining a minimum balance or setting up direct deposit.
The bank uses the deposits you place with them to fund the loans it makes to other customers. This is how all retail banks work: they borrow money from depositors at a low rate and lend it out at a higher rate.
Types of accounts and products Capital One offers
Capital One offers checking accounts, savings accounts, money market accounts, and certificates of deposit (CDs). Checking accounts come with a debit card and online bill pay. Savings accounts earn interest, though the rate varies based on market conditions and the account type. Money market accounts typically require a higher minimum balance but pay higher interest rates than regular savings accounts.
For borrowing, Capital One issues credit cards with different rewards programs and interest rates depending on your creditworthiness. The bank also makes auto loans, mortgages, and personal loans. Auto loans are secured by the car itself, meaning the bank can repossess the vehicle if you stop paying. Mortgages are secured by the home. Personal loans are unsecured, so the bank relies on your credit history and income to decide whether to lend.
Capital One also owns Sharebuilder, an investment brokerage platform, though this is a separate service from the main bank.
How to contact Capital One Bank and access your account
You can reach Capital One customer service by phone, online chat, or through the mobile app. Phone numbers vary by product—credit card customers, checking account holders, and loan customers may have different support lines. The bank's website lists the correct number for your product type.
Most customers access their accounts through the Capital One website or mobile app, where you can check balances, transfer money, pay bills, and deposit checks by photo. You can also visit a physical branch to deposit cash, withdraw money, or speak with a banker about loans or account changes.
If you have a problem with a transaction or account, you can file a complaint with Capital One directly through their customer service channels. If you are not satisfied with their response, you can file a complaint with the Consumer Financial Protection Bureau (CFPB), which oversees banks and other financial institutions.
Capital One's history and size in the banking industry
Capital One Financial Corporation was founded in 1988 as a credit card issuer. For its first two decades, it operated primarily as a credit card company. In 2005, Capital One acquired North Fork Bancorporation and became a full-service retail bank. In 2012, it acquired ING Direct USA, which significantly expanded its branch network and deposit base.
Today, Capital One is one of the ten largest banks in the United States by total assets. As of recent reports, the bank holds hundreds of billions of dollars in assets and serves millions of customers. It is a publicly traded company, meaning shares are bought and sold on stock exchanges and the company reports financial results to the Securities and Exchange Commission (SEC).
The bank operates under federal regulation by the Office of the Comptroller of the Currency (OCC) and is subject to regular audits and stress tests to ensure it remains solvent and safe.
What happens if Capital One Bank fails
If Capital One Bank were to fail, the FDIC would step in to protect depositors. Any deposits you hold in a Capital One checking account, savings account, or money market account up to $250,000 would be covered. If you have multiple account types at Capital One—for example, a checking account and a savings account—each type is insured separately, so you could have up to $250,000 in each.
If you have more than $250,000 in deposits at Capital One, the amount over $250,000 would not be protected. Some customers spread large deposits across multiple banks or use FDIC-insured accounts at different institutions to stay within the insurance limit.
Loans you have with Capital One—credit cards, auto loans, mortgages—are not insured by the FDIC. However, if the bank fails, your loan obligations do not disappear. Another bank or servicer would take over your loan, and you would continue making payments under the same terms.
How Capital One compares to other large banks
Capital One competes directly with Chase, Bank of America, Wells Fargo, and Citibank. Like those banks, Capital One offers checking, savings, credit cards, auto loans, and mortgages. The main differences are in fee structures, interest rates, branch locations, and customer service quality.
Capital One is known for its credit card offerings and for marketing to customers with lower credit scores. The bank has expanded its branch network significantly since acquiring ING Direct, so it now has physical locations in most states. Some customers prefer Capital One for its online banking tools and mobile app experience, while others choose competitors based on branch availability in their area or specific loan products.
Interest rates on savings accounts and CDs vary across all banks and change frequently based on Federal Reserve policy. It is worth comparing rates across multiple banks if you are opening a new savings account or CD, as the difference can add up over time.
Frequently Asked Questions
Is my money safe in a Capital One Bank account?
Yes, deposits up to $250,000 per account type are insured by the FDIC. Capital One is a federally chartered bank and is subject to regular safety audits by the Office of the Comptroller of the Currency. If you have more than $250,000 in deposits, the amount over the limit is not insured, so consider spreading large deposits across multiple banks or account types.
What is the difference between Capital One Bank and Capital One credit cards?
Capital One Financial Corporation owns both the bank and the credit card division. If you have a Capital One credit card, you are borrowing from the company. If you have a checking or savings account at Capital One Bank, you are depositing money with the bank. Some customers use both products, but they are separate services with different terms and customer service lines.
Can I get a mortgage from Capital One?
Yes, Capital One offers mortgages for home purchases and refinancing. You can start the process online or at a branch. Mortgage terms, interest rates, and approval depend on your credit score, income, employment history, and the property you are buying. Capital One also services mortgages for customers who refinance or transfer loans from other banks.
How do I close a Capital One account?
Contact Capital One customer service by phone or through your online account. For checking or savings accounts, you can request closure and arrange to withdraw your balance or transfer it to another bank. For credit cards, you can request the account be closed, though the bank may close it automatically if you do not use it for an extended period. Closing a credit card can affect your credit score, so consider the impact before requesting closure.
Does Capital One charge monthly fees on checking accounts?
Capital One offers checking accounts with no monthly maintenance fee if you meet certain requirements, such as setting up direct deposit or maintaining a minimum balance. Some accounts have a monthly fee if you do not meet these conditions. Check the specific account terms on Capital One's website or ask a banker at a branch to find an account that fits your needs.