Capital One vs. Bank of America: Which is right for you?

‌Capital One and Bank of America are two of the largest and best-known banks in America. Both are full-service banks, offering a full range of personal and business banking services.

In doing a side-by-side comparison of Capital One and Bank of America, we’ve analyzed four specific deposit accounts from each bank: checking accounts, savings accounts, certificates of deposit (CDs), and money market accounts. Our analysis is limited to the most popular accounts for each bank in each deposit account category.

In most comparisons between major banks, we are unable to come up with a winner. But that’s not the case in this comparison. There is a clear winner, at least when it comes to the deposit accounts we reviewed.

Let’s dive in and see what we came up with.

Capital One vs. Bank of America: Checking

Here we will do a side-by-side comparison of two of the most popular checking accounts offered by each bank, Capital One 360 Checking vs. Bank of America Advantage Plus Checking.

‌Capital One 360 Checking is the overwhelming winner in the head-to-head comparison between these two checking accounts. Though it doesn’t offer a bonus, the way Bank of America Advantage Plus Checking does, the account pays interest of 0.10% APY, has no ATM fees (even if you use an out-of-network ATM ), no monthly fees, and no minimum balance requirement.

*Applies to out-of-network fees for ATM transactions.

You can waive the monthly fee on the Bank of America Advantage Plus Checking with any of the following:

• Have at least one qualifying direct deposit of $250 or more each month.
• Maintain a minimum daily balance of at least $1,500.
• Enroll in Bank of America Preferred Rewards.

Capital One vs. Bank of America: Savings

Here the comparison is between the Capital One 360 Performance Savings account and the Bank of America Advantage Savings account.

Capital One wins on the savings account front as well. 360 Performance Savings requires no minimum deposit and charges no monthly fee or ATM fees. And if that’s not enough, it pays interest at a rate of 4.30% APY on all balances.

The monthly fee on Bank of America Advantage Savings can be waived with any of the following:

• Maintain a minimum daily balance of $500.
• Link your Bank of America Advantage Savings to your Bank of America Advantage Relationship Banking account.
• When you are a Bank of America Preferred Rewards member.
• The account owner is under 18 years old, or under age 25 and qualifies as a student.

Capital One vs. Bank of America: Certificates of deposit

CD comparisons are a bit tricky because the two banks offer certificates in slightly different terms. The table below summarizes rates paid on almost identical terms. However, Capital One offers a wider variety of terms. For example, they offer an 18-month CD paying 5.25%, a 48-month term paying 4.30%, and 60 months at 4.10%.

Which of the two banks you might choose to park longer-term savings will depend on the CD maturity you’re interested in. But Capital One does offer longer-term CDs, and they provide very competitive rates.

Early withdrawal penalties for Capital One CDs are as follows:

• Less than 12 months: three months interest.
• More than 12 months: six months interest.

You should also be aware that Capital One does not permit early partial withdrawals from CDs.

Bank of America early withdrawal penalties on CDs of various terms are as follows:

• Less than 90 days: the greater of all interest earned on the amount withdrawn or an amount equal to seven days of interest on the amount withdrawn.
• 90 days up to 12 months: 90 days interest on the amount withdrawn.
• 12 months up to 60 months: 180 days interest on the amount withdrawn.
• 60 months or longer: 365 days interest on the amount withdrawn.

Capital One vs. Bank of America: Money market accounts

Neither Capital One nor Bank of America currently offer a money market account.

Other Accounts and Services Offered by Capital One and Bank of America

Both Capital One and Bank of America are full-service commercial banks offering very similar product lines. Bank of America offers investing, mortgages, and home equity loans, while Capital One does not.

Other products and services offered by the two banks are listed in the table below:

Capital One vs. Bank of America: Which bank is right for you?

‌Capital One is the clear winner when it comes to checking and savings accounts, since they pay interest on both account types while charging no fees. They also require no minimum deposit to open an account and offer a fee-free ATM network with more than 70,000 locations. This dwarfs the 16,000 location network Bank of America offers.

In addition, Capital One offers some of the very best credit cards available anywhere.

But that doesn’t mean that Bank of America is without its virtues. Bank of America is a true full-service bank, offering all services. That includes mortgages, home equity loans, and investing. Capital One offers none of these services. You may also like the fact that Bank of America has nearly 200 branch locations in New Jersey, while Capital One has only 19.

If any of these factors appeal to you, you may find Bank of America to be a better choice than Capital One, despite the fact that Capital One generally has superior deposit accounts.