Author Topic: Capital one 360  (Read 6703 times)

felizcortez

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Capital one 360
« on: July 02, 2015, 01:03:50 PM »
I'm thinking about taking advantage of the sign up bonus on Capital One 360 both with me and my wife.  The plan would be we would put 100k cash (50k each) into a separate account for 90 days and earn the 500 dollar sign up bonus.  The plan would be to then invest the money afterwards.  I'm toying with doing it this way or just throwing the 100k into the market.

Any thoughts

zephyr911

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Re: Capital one 360
« Reply #1 on: July 02, 2015, 01:18:58 PM »
I'm thinking about taking advantage of the sign up bonus on Capital One 360 both with me and my wife.  The plan would be we would put 100k cash (50k each) into a separate account for 90 days and earn the 500 dollar sign up bonus.  The plan would be to then invest the money afterwards.  I'm toying with doing it this way or just throwing the 100k into the market.

Any thoughts
That works out to a 0.5% return, or 2.027% annualized. I can think of plenty of ways to beat that.

tarheeldan

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Re: Capital one 360
« Reply #2 on: July 02, 2015, 01:21:09 PM »
I think it's 1% and 4.054% annualized as it's $500 bonus of $50,000.

johnny847

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Re: Capital one 360
« Reply #3 on: July 02, 2015, 01:32:10 PM »
Yea this is terrible. There are plenty of bank account bonuses that beat this. Head over to the doctor of credit blog

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joeh

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Re: Capital one 360
« Reply #4 on: July 11, 2015, 09:27:39 AM »
Not sure if this is worth $500 but seems like an annoying way to get $500, I'd rather sell a few things around the house.

Edit: It's also worth noting you'll have to pay taxes on that $500. So, it'll be more like $425 (for 15% income tax).

If you are thinking of sticking with Capital One: I recently closed all my Capital One accounts. I started with them when they were ING Direct (and had the highest interest rate) but have become increasingly annoyed by their services. I moved everything to Ally(savings)/Vanguard(rIRA) yesterday...
« Last Edit: July 11, 2015, 09:29:31 AM by joeh »

TomTX

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Re: Capital one 360
« Reply #5 on: July 11, 2015, 11:29:48 AM »
Not sure if this is worth $500 but seems like an annoying way to get $500, I'd rather sell a few things around the house.

Edit: It's also worth noting you'll have to pay taxes on that $500. So, it'll be more like $425 (for 15% income tax).

If you are thinking of sticking with Capital One: I recently closed all my Capital One accounts. I started with them when they were ING Direct (and had the highest interest rate) but have become increasingly annoyed by their services. I moved everything to Ally(savings)/Vanguard(rIRA) yesterday...

Some feedback on Ally would be good. We are also ING customers, still at Cap One 360 from inertia.

MrsStubble

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Re: Capital one 360
« Reply #6 on: July 11, 2015, 11:33:45 AM »
i just opened an ally account as well.  I like what i'm seeing but they are a little slow on the opening account process. They will mail you signature cards a week after your first deposit and if you open a checking account the debit cards come a week after that so here i am 3 weeks in, still not using the whole account yet.  The billpay seems nice and easy though and their webpage is simple and easy to use from a UI standpoint. Will keep you posted about the account once we get it up and going

joeh

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Re: Capital one 360
« Reply #7 on: July 11, 2015, 12:17:12 PM »
Not sure if this is worth $500 but seems like an annoying way to get $500, I'd rather sell a few things around the house.

Edit: It's also worth noting you'll have to pay taxes on that $500. So, it'll be more like $425 (for 15% income tax).

If you are thinking of sticking with Capital One: I recently closed all my Capital One accounts. I started with them when they were ING Direct (and had the highest interest rate) but have become increasingly annoyed by their services. I moved everything to Ally(savings)/Vanguard(rIRA) yesterday...

Some feedback on Ally would be good. We are also ING customers, still at Cap One 360 from inertia.

I am using Ally purely for savings (emergency savings) with monthly deposits from my main checking account. Web interface is nice and simple. Had no issues opening account or transferring initial deposit. In Cap One, I had several "buckets" of money. It was marginally harder to do this in Ally (but ends up looking/acting same as Cap One 360).

I can't review the Ally checking account. My checking account is Simple Bank (https://www.simple.com/), I've been with them since they opened. Hands down the best checking account I've had. The only downsides are: no local branches (but their phone customer service is amazing) and no checkbooks (you can send checks by mail).

In summary: definitely happy I moved. I was getting tired of Capital One for various reasons (marketing, interface, lower rate, etc.) but nothing really urgent, so it also took me awhile.
« Last Edit: July 11, 2015, 12:20:52 PM by joeh »

RunHappy

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Re: Capital one 360
« Reply #8 on: July 11, 2015, 12:36:59 PM »
Not sure if this is worth $500 but seems like an annoying way to get $500, I'd rather sell a few things around the house.

Edit: It's also worth noting you'll have to pay taxes on that $500. So, it'll be more like $425 (for 15% income tax).

If you are thinking of sticking with Capital One: I recently closed all my Capital One accounts. I started with them when they were ING Direct (and had the highest interest rate) but have become increasingly annoyed by their services. I moved everything to Ally(savings)/Vanguard(rIRA) yesterday...

Some feedback on Ally would be good. We are also ING customers, still at Cap One 360 from inertia.

I've had an Ally savings account for a year now and really like them.  They are (as another said) slow to open an account, but very easy to use and manage.   I keep all my emergency fund in there.  For checking I still use the same credit union as I have been using for almost 20 years.  I only keep enough in there to pay bills and a small, separate savings for "house" stuff.

Jags4186

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Re: Capital one 360
« Reply #9 on: July 11, 2015, 04:12:17 PM »
Highly recommend doing this in place of having the money sit in a 1% savings or perhaps even a bond. I don't recommend selling stocks to do this. You can then take the money and move it to chase for a savings bonus, then to PNC for a bonus, etc. etc.

johnny847

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Re: Capital one 360
« Reply #10 on: July 11, 2015, 05:18:58 PM »
Highly recommend doing this in place of having the money sit in a 1% savings or perhaps even a bond. I don't recommend selling stocks to do this. You can then take the money and move it to chase for a savings bonus, then to PNC for a bonus, etc. etc.

I agree with one exception:
If you're going to tax loss harvest, then I think it's fine. Take the proceeds and chase bank account bonuses with it.
Of course, if you view these bank account bonuses as bonds (they are fixed income after all - so long as you close the account after the minimum account open requirement is up) then your asset allocation is now different. Adjust accordingly.

Rosy

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Re: Capital one 360
« Reply #11 on: July 13, 2015, 09:09:17 PM »
Highly recommend doing this in place of having the money sit in a 1% savings or perhaps even a bond. I don't recommend selling stocks to do this. You can then take the money and move it to chase for a savings bonus, then to PNC for a bonus, etc. etc.

I agree with one exception:
If you're going to tax loss harvest, then I think it's fine. Take the proceeds and chase bank account bonuses with it.
Of course, if you view these bank account bonuses as bonds (they are fixed income after all - so long as you close the account after the minimum account open requirement is up) then your asset allocation is now different. Adjust accordingly.

@johnny847 - What do you mean by "tax loss harvest"?

On the Capital One - I'm transferring my monies out tonight. I was an ING fan, because of their good rates, but guess what, my local credit union checking account pays the same interest as Ally bank and both pay more than Capital One. So good-bye Cap One!

johnny847

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Re: Capital one 360
« Reply #12 on: July 13, 2015, 09:31:02 PM »
Highly recommend doing this in place of having the money sit in a 1% savings or perhaps even a bond. I don't recommend selling stocks to do this. You can then take the money and move it to chase for a savings bonus, then to PNC for a bonus, etc. etc.

I agree with one exception:
If you're going to tax loss harvest, then I think it's fine. Take the proceeds and chase bank account bonuses with it.
Of course, if you view these bank account bonuses as bonds (they are fixed income after all - so long as you close the account after the minimum account open requirement is up) then your asset allocation is now different. Adjust accordingly.

@johnny847 - What do you mean by "tax loss harvest"?

On the Capital One - I'm transferring my monies out tonight. I was an ING fan, because of their good rates, but guess what, my local credit union checking account pays the same interest as Ally bank and both pay more than Capital One. So good-bye Cap One!

Tax Loss Harvesting

I did this once. I was planning on tax loss harvesting (TLHing) VTIAX sometime last year. I happened to also get a Chase Savings account bonus at the time - $150 for $10k deposit held for 90 days. I sold VTIAX to TLH, and used $10k of the proceeds to fund the savings account. I then sold my bonds for VTSAX in my IRA to adjust for the change in my asset allocation, because I viewed the bank bonus as a fixed income asset that returns $150 in 90 days.
After the 90 days, I moved $9700 back to VTIAX and sold VTSAX in my IRA back for bonds (the $300 difference there is because if I closed the account before the 180 day mark I would have to pay a $25 fee, and $300 is the minimum to avoid fees on the account).

Rosy

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Re: Capital one 360
« Reply #13 on: July 14, 2015, 08:31:59 AM »
@johnny847

THANK YOU:)

Parkingmeter

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Re: Capital one 360
« Reply #14 on: July 14, 2015, 12:08:50 PM »
You also get the .75% base interest rate with the 360 account, so that inches it up closer to the other 5% options available.

This is also much less effort and has a higher cap of 50k than most of the other options.

JoshTX84

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Re: Capital one 360
« Reply #15 on: July 14, 2015, 03:11:23 PM »
I think this is a great idea for a cash position that is part of your AA, or an emergency fund.  My wife and I just opened an account for the 1% bonus over 90 days and we will also get the .75% base interest rate mentioned above.  We will keep the money in there at least 90 days, but will consider moving it for another promotion afterward.

johnny847

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Re: Capital one 360
« Reply #16 on: July 14, 2015, 03:51:24 PM »
I think this is a great idea for a cash position that is part of your AA, or an emergency fund.  My wife and I just opened an account for the 1% bonus over 90 days and we will also get the .75% base interest rate mentioned above.  We will keep the money in there at least 90 days, but will consider moving it for another promotion afterward.

If you want to chase bank bonuses, there are MUCH better bank bonuses to be had. See my posts above.

Cycling Stache

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Re: Capital one 360
« Reply #17 on: July 14, 2015, 05:48:43 PM »
We are also Capital One 360 holdovers from the ING days.  I didn't realize that the current rates were way below market--I just assumed that it was a product of the cheap money in the US. 

I probably won't switch though because we fully embraced MMM's springy debt concept of using a HELOC as an emergency savings account and ended up draining the accounts.  So there's typically less than $3-4k in there, which doesn't seem worth the switch.

I think setting up an account just to get $500 seems like a lot of work/tied up capital for not that much return, especially if higher rates are available elsewhere.