Today we are certainly comparing two of the pioneers of the American Banking System, Capital One and Bank of America. Although they provide similar banking services like deposit accounts, loans, and credit facilities, one is way ahead of the other.
Capital One has more ATMs, better customer support, higher interest rates in their savings, checking, and CD accounts. Also, there are no overdraft fees and $0 minimum deposit fees in all accounts.
But, Bank of America has a slight edge in terms of more number of branches (almost 4,200+) and lower return deposit fees.
Let’s look at their comparison at a glance in the table below.
Capital One vs Bank of America: Overview
|Feature||Bank of America||Capital One|
|Checking Monthly Fee||$12 per Month||$0|
|Checking Minimum Deposit||$100||$0|
|Savings Monthly Fee||$8||$0|
|Savings Return||0.04% Annually||0.40% Annually|
|CD Earning||1 Year 0.03%, 5 Year 0.03%||1 Year 0.60%, 5 Year 1.00%|
|CD Minimum Deposit||$1,000||$0|
|Phone Hours||8:00-23:00 ET (Mon-Fri)|
|Overdraft Fee||$35, limit 4 per day||$0|
Capital One is a far better bank in almost every way when compared to Bank of America. However, there are a few tidbits where it lags.
For example, Capital One has only 320+ branches in the US as compared to Bank of America which has over 4,200+ branches. Moreover, the return deposit fees are a bit on the higher side.
As far as other aspects are concerned, the annual rates in checking, savings, and CD accounts are way higher in Capital One. Moreover, they have a $0 minimum deposit in every account and a superior online banking experience.
Who is Capital One for?
Capital One is for those customers who prefer an online banking experience, high return on their investments, zero monthly maintenance fees, and minimum overdraft fees.
Pros of being a Capital One Customer:
- A vast number of ATMs (70,000+)
- Higher APY rates
- $0 minimum deposit amounts
- 24/7 customer support
- No overdraft fees
- Zero account maintenance fees
Cons of being a Capital One Customer:
- A limited number of branches in the US (320+)
- High return deposit fees ($30)
Who is Bank of America for?
Customers who want better offline support and the convenience of more branches can choose Bank of America for opening their accounts.
Also, with Bank of America, the return deposit fee (for both domestic and international transfers) is a bit on the lower side.
Pros of being a Bank of America Customer:
- More number of branches (4700+)
- Low return deposit fees
Cons of being a Bank of America Customer:
- Low APY rates, both in Savings as well as CD accounts
- The minimum deposit amounts are high
- High overdraft fees
- High account maintenance fees
Capital One vs Bank of America: Checking Account Comparison
|Checking Account||Bank of America||Capital One|
|Monthly Maintenance Fee||$12||$0|
|Minimum Opening Deposit||$100||$0|
Capital One not only has $0 account maintenance fees, but it also provides an APY rate of 0.10 even at a $0 minimum account opening deposit.
This is crazy good when compared to the 0.01% APY rate and high $12 maintenance fees of Bank of America. However, you can waive off this fee through direct deposits of at least $250 each month or by maintaining a daily balance of $1,500 or more.
Capital One vs Bank of America: Savings Account Comparison
|Bank of America||Capital One|
|Monthly Maintenance Fee||$8 (Can be waived)||$0|
As we can see that the monthly maintenance fee of Capital One is $0. Moreover, the APY rates are almost 10x when compared to Bank of America. Moreover, Bank of America also charges $8 as an account maintenance fee.
However, the minimum deposit fee is also $0 in the case of Capital One account holders.
Capital One vs Bank of America: Certificate of Deposit Comparison
|Certificate of Deposit||Bank of America||Capital One|
|APY- 1 Year||0.03%||0.60%|
|APY- 3 Years||0.03%||0.75%|
|APY- 5 Years||0.03%||1.00%|
Opening a Certificates of Deposit account in Bank of America is pointless. You will get far attractive returns in Capital One. Moreover, the minimum deposit to open a CD is $0.
Capital One vs Bank of America: Fees Comparison
|Bank of America||Capital One|
|Return Deposit||Domestic- $12 Foreign- $15||$25- Flat|
|Wire Transfer||Domestic: $30|
|Domestic: $0 (incoming)|
Domestic: $30 (outgoing)
International- $0 (incoming)
Here we can see that if you compare ATM fees and Overdraft fees, Capital One has a complete advantage as it charges $0.
However, for the stop payment and wire transfer fee, both of them charge more or less the same amount. But, Bank of America has a slight advantage on the return deposit fee as it charges up to $10 less.
Capital One vs Bank of America: Verdict
Overall, Capital One is the winner. It has zero account maintenance and overdraft fees, zero minimum deposit value, and higher APY returns.
Benjamin is a certified financial advisor, with over 10 years of experience in the industry. He is knowledgeable about various business and financial topics, such as retirement planning and investment management. Ben has been recognized for his work in the financial planning industry. He has also been featured in various publications.