Capital One student account review: What you need to know

TransferWise
01.22.20
5 minute read

About to go to college and wondering how best to manage your money? You need the right account to help you balance convenience and cost, and keep on top of your finances.

We’ll look at all the options available from Capital One, and also an alternative for comparison - the borderless account from TransferWise - to help you find the best account for your needs.

Table of contents:

How to open a student account with Capital One

Capital One doesn’t have a specific checking account for students. Instead, you’re advised to open a Teen Checking account if you’re under 18¹ - and convert it to the low fee Capital One 360 Checking Account² after that. You can also apply for a specific student credit card - the Journey® Student Credit Card.³

Teen accounts are opened as joint accounts with a parent or guardian, giving both parties access to account and spending information.

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What kind of student bank account does Capital One offer?

Here’s all you need to know about the accounts offered by Capital One which might suit students - and some of the key features to consider.

Capital One Teen Checking Account

The Teen checking account can be opened for customers aged 8 or over, in joint names with a parent or guardian. You can hold this account until you’re 18, and will then need to switch to an adult account - the 360 Checking Account is the product Capital One recommends.¹

Capital One 360 Checking Account

Although it’s not a specific student account, the 360 Account has many of the perks you might expect from a product aimed at students. ² You’ll not pay any monthly service charge and there’s no minimum balance to worry about. You can get a linked debit card for ATM use and spending in stores, or apply for a student credit card from Capital One if you’d rather.

Journey® Student Credit Card

Capital One offers a credit card specifically aimed at students, which gives 1% cashback on purchases.³

International payments

Receiving an international payment into your Capital One 360 account is free. However, you can’t make outgoing international payments with the 360 Checking Account.


TransferWise Mastercard with balances

If you want to send payments to friends or family abroad, you might be better off with a borderless account from TransferWise. This multi-currency account lets you hold your money in dozens of different currencies and send payments overseas using the mid-market exchange rate with no markup. You’ll also get a linked debit card so you can make ATM withdrawals abroad, and spend internationally online or while you travel, with no international transaction fee to worry about.

Interest and overdrafts

You’ll earn interest on your balance in both the Teen Checking and 360 Checking Accounts - this is variable, but sits at 0.2% at the time of research.

With a 360 Account you have the option of an overdraft. You can manage your preferences online, and either choose to have payments declined when they might overdraw your account, link a savings account to cover the shortfall, take a credit line, or get a day’s grace to top up your funds. There are fees for some of these options - more on that in a moment.⁴

What are the requirements to open a student bank account with Capital One

Teen Accounts can only be opened in joint names, where one customer is aged 8 to 17 years old, and the other account holder is their parent or legal guardian. The parent or guardian will need to have another US bank account they can link to the teen account to be eligible.⁵

To open a 360 Checking Account, you’ll need to be a US citizen or permanent resident, aged 18 or older, and have a US address. To open your account online you must have a Social Security Number, although you might be able to open you account in a branch if you don’t have this, but do have a Taxpayer Identification Number (TIN).⁶

Capital One student account fees

Capital One doesn’t offer a specific student account, but recommends the 360 Checking Account instead. Let’s take a look at the fees and restrictions which might apply to this account.

Service Fee⁴ ⁷
Account opening and maintenance No fee
ATM fees Capital One does not charge a fee. If you use an ATM from outside the Capital One network, there might be a charge levied by the owner of the ATM.
Overdraft You can choose to have your account decline any payment which might cause you to go into you overdraft, and avoid any fees which may be applied. Alternatively, if you overdraw your account you have a few options. You can link a savings account to cover the shortfall, take a line of credit, or opt in to have a day of grace to top up your account. If you use a credit line there will be an interest charge to pay. If you fail to top up your account under the day’s grace policy, you’ll be charged $35.
Domestic wire payments Free to receive a payment from a US account Up to $40 to send a US domestic wire transfer
International wire payments Free to receive an international wire payment It’s not possible to make an international wire payment from you 360 Account⁸
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You’ll have plenty of choice when it comes to selecting an account to see you through your college years. A specific student account might be a good choice, but it’s also worth considering other low cost accounts like the Capital One 360 Account. If you want to send money overseas, or love to travel and want a cheap way to access your money when you’re abroad, you might also benefit from the borderless account from TransferWise. See if you can save, today.


Sources:

  1. https://www.capitalone.com/bank/checking-accounts/teen-checking-account/
  2. https://www.capitalone.com/bank/checking-accounts/online-checking-account/
  3. https://www.capitalone.com/credit-cards/journey-student/
  4. https://www.capitalone.com/bank/overdraft-options/
  5. https://www.capitalone.com/bank/checking-accounts/teen-checking-account/disclosures/#id_accounttermsandconditions
  6. https://www.capitalone.com/bank/checking-accounts/online-checking-account/disclosures/
  7. https://www.capitalone.com/assets/bank/media/360checking-pew.pdf
  8. https://www.capitalone.com/social-media/answers/#

All sources last checked on 22 January 2020


This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

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