Capital One Spark Review

Pros

• Promotional rate on savings for 12 months
• No minimum balance requirements
• Branch offices available for in-person service
• Cash deposits allowed
• Unlimited free digital transactions
• Free overdraft protection

Cons

• Must apply in person, with branch sites limited to 8 states plus Washington, D.C.
• High APY on savings expires after 12 months
• Withdrawal limits on savings accounts
• High balance requirement to waive monthly fees on Unlimited Checking

Services Offered By Capital One Spark

Long-time credit card provider Capital One operates a direct bank, Capital One 360, that provides business banking services under its Spark line of financial services. With two types of checking accounts available, Spark Business Basic Checking and Business Savings, Capital One Spark aims to serve businesses of all sizes and needs.

With its deep list of Capital One credit card options for businesses, including some we count among the best credit cards available for businesses, Capital One Spark goes beyond basic business banking. Add in Capital One Spark’s merchant services option, and you have a fairly complete financial services package for businesses that goes beyond most of its competitors’ offerings.

Here’s a list of the financial services you can access via Capital One Spark:

• Two types of checking accounts
• Debit card
• Traditional checks
• Online bill pay
• ATM network
• Savings accounts
• Certificates of deposit
• Mobile app
• Branch access
• Cash deposits accepted
• Overdraft coverage
• Loans
• Lines of credit
• Credit cards
• Merchant services
• Next-day funding
• Cash-flow management tools
• Escrow services
• Commercial business services

Capital One Spark Rewards & Perks

Capital One Spark banking offers its users a few valuable rewards and useful perks. The list begins with the opportunity to earn above-average interest on savings accounts. Spark savings accounts come with a promotional rate that’s guaranteed only on new accounts and only for the first 12 months. Currently standing at 0.2%, this promotional rate applies to the first $5 million in savings.

While Capital One’s Spark checking accounts do not earn rewards, Spark banking customers can apply for a linked business credit card. Choose from a variety of Spark reward cards, including Spark Classic and Spark Cash options that come with cash-back rewards or Spark Miles, a card that lets users accrue travel miles. All cards come with business-grade benefits that include automatic payments, $0 fraud liability, year-end summary, free employee cards, virtual card numbers, and integrations with Quicken, QuickBooks, and Excel.

If you choose to use Capital One’s merchant services, you’ll be able to accept payment via major credit cards and digital wallets using smart terminals and mobile readers. You’ll also be able to build or enhance an online store, enjoy data security tools, receive clear reporting, and have next-day cash deposits into your account when you make sales.

Capital One Spark Pricing & Fees

Capital One offers two types of Spark checking accounts, each with its own minimums, requirements, and fees. Capital One Spark fees are straightforward for each type of account. First, it’s important to note that both accounts come with unlimited digital transactions each month. Here’s a quick overview of the two checking accounts:

Capital One Basic Checking

The $15 monthly maintenance fee for the Basic checking account can be waived if you maintain an average minimum balance of $2,000. This account allows $5,000 in cash deposits each month with no charge; you’ll pay $1 for every $1,000 in cash deposits after that limit. If you plan to make domestic wire transfers, expect to pay $15 per incoming wire and $25 for each outgoing wire. Although you can use your ATM card for free at Capital One Bank ATMs, out-of-network use will cost up to $5 each. Using your debit card internationally will draw a $2 fee per use. If you have funds in a linked account, you will not be charged an overdraft fee, although NSF transactions may cost you $35.

Capital One Unlimited Checking

Upgrade to Unlimited checking, and your monthly fee goes up to $35 and becomes a bit more difficult to waive: You can eliminate it only by maintaining a minimum balance of $25,000. In exchange for that higher fee, you’ll unlock no-fee monthly cash deposits up to $40,000 and free incoming domestic wire transfers in addition to five outgoing wires each month. (You’ll pay a $25 charge per transfer after that.) If you need foreign wire transfers, expect to pay $15 for incoming wires and $40 per outgoing transfer if in foreign currency and $50 per transfer if in US dollars.

If you also open a Capital One Spark business savings account, you’ll be subject to a $3 monthly service fee. Maintain a $300 minimum balance and you can have that fee waived. Linking your savings account provides overdraft coverage. Savings accounts allow up to six free account withdrawals per statement cycle.

Capital One Spark Eligibility Requirements

Capital One Spark business banking is open to all types of businesses, with no income requirements or minimum length of time in business needed. A reasonable minimum deposit of $250 is required to open a checking account with Capital One Spark.

That makes Spark business banking a good choice for startups as well as more established businesses. You’ll need to be prepared to show the standard documentation required to open a business bank account. At a minimum, expect to show government-issued identification that shows you are a legal US resident at least 18 years old. You’ll also need to show documentation for your business that will vary depending on your business structure, e.g., sole proprietorship or corporation.

Note that Spark business banking is available only to US-based businesses. Additionally, Capital One says that its business checking accounts are intended for businesses with annual sales revenues under $10 million; the bank reserves the right to convert accounts that exceed that limit to other types of banking services.

Unlike other business bank accounts, Capital One Spark bank requires applicants to visit a local branch to start the application process. This could present a wrinkle in the area of eligibility since you cannot apply for Capital One’s business banking services online. Check for a location near you before you decide to open a Capital One business bank account. At the time of this review, although you’ll find 900+ Capital One bank branches, you’ll find them only in  Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia, and Washington, D.C. To be clear, you don’t need to live in one of those areas to open a Capital One Spark business account, but you’ll need to visit a branch in-person to do so.

Capital One Spark Features

Capital One Spark business delivers a complete set of financial tools for small to medium-sized businesses. With a reasonable $250 opening balance requirement and two checking options that start at a $35 monthly fee (that can be waived with a $2,000 minimum balance), Capital One Spark banking is appropriate even for startups and independent contractors.

Let’s take a look at some of the basic features Capital One Spark business banking delivers:

In addition to these features, Capital One Spark business accounts offer a few noteworthy features:

• High-Yield Savings: Although we note it’s a promotional rate, valid for the first 12 months, it’s worth pointing out that Capital One Spark business accounts offer an above-average interest rate on savings accounts. At the time of this review, that rate stands at 0.2% on the first $5 million in savings.
• No Fees: Users will pay no fees on unlimited digital transactions and electronic bill payments. Checking accounts have reasonable monthly fees that many users will be able to waive.
• Cash Deposits: With many business accounts accepting very limited cash deposits, charging fees for cash deposits, or refusing them altogether, Capital One Spark business banking stands out with its relatively generous cash deposit limits. Basic checking allows up to $5,000 in cash deposits each month, and Unlimited allows up to $40,000. Exceed those limits and you’ll pay $1 for each additional $1,000 in cash deposited.
• Access To Credit: Capital One Spark banking stands out for the range of credit cards made available to users. This is in addition to loans and lines of credit. Choose a credit card that earns mileage credit or cash back, set automatic payments, enjoy $0 fraud liability, download records into Quicken, QuickBooks, and Excel, and give your employees cards that let you track their spending and set controls.

Under most circumstances, deposits to a Capital One Spark business bank account are readily available. The bank’s general policy is to make funds available on the first business day after deposit. The consistent exception is electronic deposits received; those are available the same business day they are received. If a delay applies to funds availability, they will generally be available on the second business day, with the first $200 generally available the first business day. A “business day” is defined as every day except Saturdays, Sundays, and federal holidays. Deposits made at a branch office on a business day generally will be available that day.

Capital One Spark Customer Service

I found no shortage of reviews online from users who were frustrated by poor customer service from Capital One. My experience was different, however. I called the general helpline and made my way through the phone tree with no trouble and in less than two minutes I was connected with an agent specializing in business banking. She identified herself with her agent number, spoke clearly, and answered my questions politely and efficiently. Although I’m not a customer seeking help in sorting out a thorny issue, it’s worth noting that based on my own personal experience, brief and general though it was, I would expect a similar professional approach in a more serious situation.

The following options are available for Capital One Spark business banking customer service:

• Phone: Phone support is available.
• Digital Assistant: Access “Eno,” Capital One’s digital assistant, through chat, on the mobile app, via text message, through your browser, and more.
• Support Center: Visit the searchable online help center for answers to common questions.
• Social Media: Capital One maintains active accounts on Instagram, Twitter, Facebook, and LinkedIn. Not all posts are related specifically to business banking.
• Videos: Visit Capital One’s YouTube channel for promotional and informational videos.
• Postal Mail: General correspondence and specific requests can be sent via mail to various post office boxes in Salt Lake City.

Capital One Spark Reviews & Customer Complaints

Capital One Financial Corporation is accredited by the Better Business Bureau and maintains an A rating there, despite a variety of complaints filed against the company with the BBB. Tellingly, it’s possible to find positive reviews and complaints that focus on the same topic, like the mobile app or customer service. This may be a company that delivers a range of service depending on users’ needs and expectations. In that case, let the buyer or, rather, the business owner beware.

What Users Like

• Friendly customer service
• Easy to use mobile app
• High APY
• Good credit builder

What Users Dislike

• Unhelpful customer service
• Problems with direct deposits
• Buggy app

Is Capital One Spark Safe?

A Capital One Spark business bank account is a safe place to deposit your funds. Capital One Spark accounts are FDIC insured to the legal maximum of $250,000 per depositor. The bank takes online security seriously, offering secure login options, real-time alerts for account activity, and enhanced alerts on suspicious transactions.

Should problems arise, processes are in place to help you submit a claim, report fraud, lock your debit card, and reclaim any lost money.

Final Verdict: Is Capital One Spark Worth It?

Capital One Spark banking can be an attractive option for businesses looking for a truly all-in-one banking solution.

From merchant services that help you make the sale to interest-bearing savings accounts that put your money to work for you, a Capital One Spark bank account can meet your needs. And, as your business grows, you can take advantage of credit options, including loans and lines or credit, to fund your growth. Companies can also take their pick of Capital One Spark credit cards, which come with perks like cash back and mileage points, and deliver tools for managing employee spending.

With an opening balance requirement of $250, Capital One Spark banking is appropriate for even small businesses, though we think it might be most appropriate for those that are a little larger and looking for funding to help them grow. The bank’s monthly fees are reasonable and many users will find them easy to waive, by maintaining the required account minimums. We especially like the generous limit on cash deposits. With fewer banks accepting cash deposits at all, or without exorbitant fees, Capital One’s $40,000 monthly limit on the Unlimited account could be attractive to businesses that make cash sales.

Unfortunately, were we in the market ourselves for a business banking solution today, we would find it difficult to open a Capital One Spark business account. That’s because this bank does not accept online applications, requiring would-be customers to visit a branch office and present their business documentation in person. Since we don’t live in or near Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia, or Washington, D.C., it’s not a practical option in our area.

And that’s a shame because there’s a lot to like about Capital One Spark as a business bank. In fact, we rate it among the best bank accounts for small business. If you’re looking for an all-in-one solution to your business’s financial needs, with an above-average APY, low fees, unlimited fee-free digital transactions, and access to credit — and if you’re within reach of a Capital One physical bank location — this could be a good choice for your business needs.

Capital One Spark FAQs

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