Capital One 360 Savings Account Review – Budget and Save Like a Boss

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Whether you follow a monthly budget or not, a Capital One 360 Savings account will help you accomplish your savings goals throughout the year.  I’ve been using a Capital 360 Savings account since 2005.  I’d like to share how my account is setup and how it can be of benefit to anyone.

 

Multiple Savings Accounts

The Capital One 360 Savings is designed for budgeting and multiple savings goals.  After you sign up and create an account, you have the ability to create up to 25 total savings accounts.  You can name each savings account which allows you to categorize anything you may be saving for.

I have found over the years that there are 3 categories of savings:

  1. Annual Recurring Expenses
  2. Long Term Goals
  3. Short Term Goals

I never liked the idea of having one savings account which I draw from for various reasons.  I like having defined savings categories as it is easier to monitor my saving progress.  There’s also a sense of accomplishment when you set a savings goal and you meet the goal.

I also find it easier to actually spend the money on the intended goal without remorse.  This is especially true when it comes to vacation savings.  Knowing what you can spend keeps your spending in check and it can also let you relax a little.

 

Capital One 360 Savings - Account Screen
You can set up multiple savings accounts with a Capital One 360 savings. Keep all your savings goals separated!

 

Annual Recurring Expenses

We all have recurring expenses which come up every year.  If your living on a tight income, these expenses can really throw you off as they come due.  It is much better to be prepared for these expenses and to write a check for the full amount due, than to be surprised at the billed amount and wondering how your going to pay for it.

Although I’m not living on a tight income now, there was a time when debt had a strangle on me.  I would dread these expenses when they came due.  I decided I did not like that feeling anymore.

The solution to my problem was to save for these expenses before they came due, instead of dragging out the payments and paying even more in interest.  The best way to do this was to set up separate savings categories in my Capital One 360 Savings account.

Here are some popular annual recurring expenses:

  • Car Insurance
  • Car Maintenance
  • Christmas Gifts
  • Life Insurance
  • Property Taxes
  • Vacation

I still use these categories in my savings account today.  The smallest amount I currently save for is Life Insurance which is $425.  I could pay this from my monthly income when it comes due, but I like to have it accounted for well in advance.  Consider these accounts to be similar to the envelope style method of budgeting.

I typically top off these recurring expense savings accounts at the beginning of the year before I save for anything else.  For example, I like to have $1,500 set aside for car maintenance (brakes, tires, major repairs).  Say I only spent $400 in the previous year on car maintenance.  When the new year begins, Car Maintenance will be one of the first accounts I top off so I can get it funded and out of the way.

 

Long Term Savings

I consider long term savings to be anything that I would like to save for that may be coming up in a few years.  Long Term Savings also includes my emergency fund.  The Capital One 360 Savings account let’s me create a category for each one of these.

Here are some examples of long term savings goals:

  • Emergency Fund
  • House Down Payment
  • Purchase Car

After all my recurring savings accounts are topped off for the year, then I focus on long term and short term savings.

I was glad to have the Purchase Car savings account in June when we paid cash for a used Acura RDX.  Knowing we had to buy 2 cars in the same year, there is still some leftover for a truck I plan on purchasing in the coming months.  This has been our main savings goal for the last year and half so most of our savings have been going in this account.  Once I purchase a truck, our next savings goal is to have as much money as possible to buy our next house.

 

Short Term Savings

Short term savings are for things we want within the year.  The great thing with the Capital One 360 Savings is you can rename your accounts.  I have 3 different accounts which are considered short term.  I have changed the purpose of these accounts many times over the years.  Some of the most recent uses include:

  • Baby Fund
  • Bedroom Furniture
  • Finish Basement
  • Outside Patio

We fund short term savings before long term savings.  While funding short term savings, we take a temporary break from funding long term savings to get things we want or need in the near future.  After we have reached our short term savings goals, then we revert back to the long term savings goals.

 

Capital One 360 Savings - Rename Account
Easily rename any of your accounts when you want to change to a new savings goal!

 

Automatic Savings

A great feature of the Capital One 360 Savings is the ability to set up automatic deductions from your checking account into any of your savings accounts.  You can transfer as little as $1 and setup the exact time you would like the amount deducted from your checking account.

With the automatic deduction feature, you don’t even have to think about moving money around once you have it setup.  You can also change the frequency and amount at any time.

I typically setup any transfers to occur the day before I get paid.  For example, I get paid on Fridays, but my transfer is setup for Thursdays.  The money doesn’t actually get taken out until Friday so everything hits my checking account all at once.  That way I don’t see the money still sitting in my checking account all weekend.

 

Capital One 360 Savings - Transfers
Setting up automatic transfers is simple and free! You can do a one time transfer, schedule a transfer for a later date, or a recurring transfer.

 

Savings Goals

If you have a certain savings goal in mind, you can set up your Capital One 360 Savings to track your progress.  On the main account screen, click “My Savings Goals”.

Choose the savings account you would like to set a goal with.  In my example below, I would like to save $3,000 in my Vacation account.  I then have two options on how to set up my goal.

Option 1

The first option for my savings goal is to set it by Amount.  I want to save $3,000 for my vacation and I need to do it by December 31st.  The calculator takes into account that I already have $908.31 in my Vacation account.  After I click “Calculate”, I am told how much I need to save each month in order to reach my goal.

You can also set it to calculate how much you need to save weekly, bi-weekly, on the 15th and last day of the month or by month.  These are all popular pay dates for when most people receive their pay.

 

Capital One 360 Savings - Savings Goal By Amount
Option 1 – Set your goal amount and a date for when you would like to achieve your saving goal. The calculator will tell you how much you need to save weekly, bi-weekly, on the 15th and last day of the month, or monthly.

 

Option 2

The second option for my savings goal is to set how much I would like to save each month.  The calculator will tell me the End Date for when my goal will be achieved.  I want to save $3,000 for my vacation but I can only contribute $200 every two weeks.  Taking into account that I already have $908.31 saved towards my vacation, the calculator tells me I will achieve my goal of $3,000 by January 27th.

 

 

Capital One 360 Savings - Savings Goal By End Date
Option 2 – Set your goal amount and how much you would like to save each week, bi-weekly, 15th & end of month, or monthly. The calculator will tell you when you will reach your goal.

 

When you set up a goal, there were be a progress indicator on your main account screen.  This helps you to see how far along you are for each of your savings goals.

 

Free Credit Score

Finally, one of the greatest features of having a Capital One 360 Savings account is unlimited free access to your credit score!  Capital One 360 Savings partners with Credit Wise to let you view your credit score for free!  Just click “Track my Credit Score” when you login to your account.

 

Capital One 360 Savings gives you unlimited free access to view your credit score!
Keep up to date with your credit score for free using your Capital One 360 Savings account.

 

Refer A Friend

Want to earn an extra $1,000?  The Capital One 360 Savings account has a referral program where you can make money by referring your friends to sign up for an account.

Here’s the deal I am making with you my readers.  The referral program with Capital One 360 Savings only let’s you earn a maximum of $1,000 for referring a friend.  That’s 40 people x $25 per referral.  If you sign up for a Capital One 360 Savings account through my referral link, “like” my Facebook page and follow me on Twitter, please let me know!

As soon as I max out my referral income, I will chose a random person who signed up using my referral link, and replace all my referral links with theirs on this blog post.  I will do this indefinitely!  This post should get a lot of traction so there is a chance for multiple people to max out their referrals and to make $1,000 from this blog post over time.  I will help you make money!

Here are the rules set in place by Capital One 360 for the referral program:

The $25 bonus is available only for new 360 Checking or 360 Savings accounts with a new Capital One 360 Customer as the primary account holder. Your $25 bonus will automatically be deposited into your account upon account opening. Bonus starts earning interest upon account opening, but is unavailable for withdrawal for 30 days, once the requirements are met.

 

Conclusion

The Capital One 360 Savings has many great features for anyone who lives by a budget or is trying to set a budget.  With free and easy transferring of money and scheduled automatic deductions, it’s easy to start saving for any recurring expenses and short or long term goals.  It’s also great to set savings goals and to watch your progress.  Also, the ability to monitor your credit score for free can be of benefit to anyone who may be applying for credit.  Don’t forget to let your friends know about these great features as well and earn a referral fee in the process!

 

 

Hi readers! If you do not have a Capital One 360 Savings account, are you interested in signing up?  Please ask me any questions below and I will be happy to answer them!

Want to get the latest posts from The Cash Lab? Make sure to subscribe on Facebook, Twitter, or by email or RSS reader (in the column to the right).

         

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Welcome to all aspiring early retirees! My wife and I still work however we have each been able to cut our hours worked from 40 each week to 24.

We have had no change in lifestyle as a result (except more time with family) and are building wealth every month.

I hope to share some of our ongoing story with you and be an inspiration to you on your path to financial freedom!
Cash Lab
Follow Me

Cash Lab

Welcome to all aspiring early retirees! My wife and I still work however we have each been able to cut our hours worked from 40 each week to 24. We have had no change in lifestyle as a result (except more time with family) and are building wealth every month. I hope to share some of our ongoing story with you and be an inspiration to you on your path to financial freedom!

4 thoughts on “Capital One 360 Savings Account Review – Budget and Save Like a Boss

  • September 8, 2016 at 5:40 am
    Permalink

    Great post about savings and all the accounts you can setup. I have a Capital One account already (had it back when it was ING), otherwise I would sign up with the refer a friend link.

    I really like the breakdown of recurring savings, short term, and long term. That helps me visualize what I’m aiming for. And then I can rename each account as needed…perfect. Thanks.

    Reply
    • September 8, 2016 at 6:21 am
      Permalink

      Nice Brian I think anyone who already has a Capital One 360 Savings account understands how great of a tool it is for budgeting and saving. I know it’s been a great catalyst for me to get ahead of the game with recurring expenses and all my savings goals.

      Reply
  • September 28, 2016 at 10:49 am
    Permalink

    Nice review and awesome offer to your readers!

    Savings accounts like these make great places to separate your savings goals and see your progress. I also always love that it takes several days to get your money back from these accounts because it’s a built-in impulse control mechanism.

    I also already have an account otherwise I would sign up with you!

    Thanks for sharing!

    Reply
    • September 28, 2016 at 1:13 pm
      Permalink

      Thanks Josh! The Capital One 360 Savings has definitely been a great tool for me when I was starting a budget.

      It’s true that it does take a few days for the money to be deposited back into your checking account if you need it. That’s pretty standard for online savings accounts and definitely something to think about if you are planning on pulling money out.

      I’ve already had some sign ups through my referral links which is awesome! Looking forward to maxing out this affiliate so I can help my readers as well.

      Reply

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