Capital Bank Review

Capital Bank Capital Bank

0.15% APY

Capital Bank is a mid-sized regional bank with locations throughout the Southeast, concentrated in North Carolina, Tennessee and Florida. It has more than 300 bank branches, including those operated as First Tennessee bank (which has the same ownership as Capital Bank).

There are both commercial and personal banking services available at Capital Bank. On the personal banking side, it offers mortgages and consumer loans, credit cards, retirement help, and deposit accounts.

The checking and savings account offerings at Capital Bank are not especially impressive when compared with similar banks. Interest rates on savings accounts and certificates of deposit are fairly low, and policies on overdrafts and other account fees are somewhat stringent. In short, while Capital Bank may make sense for those who live near a branch for convenience alone, those seeking the best features and rates on their account should look elsewhere.

Products Offered

Capital Bank Interest Rate Comparison

Capital Bank Overview

Capital Bank, along with First Tennessee Bank, is part of the First Horizon family of banks. It was founded in North Carolina and expanded into South Carolina, Florida, and other southeastern states before joining the First Horizon family. Today, there are more than 300 Capital Bank and First Tennessee branches spread throughout the southeast.

The bank offers a plenitude of services, from commercial banking, to mortgages and home equity loans to consumer deposit accounts. It also has a variety of checking and savings account options.

Capital Bank Account Features

Capital Bank is a member of the Allpoint ATM network, which means checking accounts and other accounts that are linked to a checking account come with surcharge-free access to ATMs across the country. Likewise, most accounts come with free online and mobile access.

All Capital Bank accounts have a monthly service fee. Typically this fee can be waived based on either a minimum account balance requirement or a direct deposit. Pay attention to these fees, however, because they can eat away at savings.

Capital Bank Savings Account

Capital Bank offers one basic savings account called “Traditional Savings.” It has a relatively low balance requirement, with a minimum balance of just $250 needed to avoid the $5 quarterly fee. However, there are on some limitations on the account.

For starters, if you want ATM access to your money, you will also need to sign up for a checking account. As described in the checking account section above, that means either paying a monthly fee or making one monthly direct deposit into your account.

Furthermore, while the interest rate on this account is better than that offered at many national banks like Chase or Bank of America, it is not very high. At 0.15% APY, you will not be able to increase your savings significantly through interest alone.

Capital Bank Certificates of Deposit

Certificates of deposit at Capital Bank have terms from as short as 30 days to as long as five years. You receive a fixed interest rate for the length of your term, with higher rates for longer terms. You have to pay a penalty to withdraw funds before the end of your term, so if you need flexible access to your funds, a regular CD is not the account for you.

While rates on CDs at Capital Bank are higher than those offered on other accounts, they are not particularly high when compared with CD rates nationwide. For instance, while many banks offer CD rates of more than 2%, Capital Bank does not have any higher than 1%.

This is also a problem with Capital Bank’s more flexible CD, the Add-on CD. This account allows you to add funds as you go. But rates are lower even than those offered on a basic savings account, so the flexibility is not much of an advantage.

Capital Bank Money Market Account

A money market account is similar to a savings account. At Capital Bank, there are tiered interest rates on money market accounts, so if you are planning on depositing more than $25,000, you will be able to earn more interest with a money market account. Below that threshold, however, there is not much advantage to a money market account.

While the initial deposit to open a money market account is only $50, you need at least $5,000 in deposits among all Capital Bank accounts to avoid a monthly $9 fee. Likewise, to have ATM access to your money market balances, you need to pair the account with a checking account. 

Capital Bank Checking Account

Capital Bank’s introductory checking account is called “Express Checking.” To open an account you need to make an initial deposit of at least $50. After that, there is no minimum balance requirement. However, there is effectively a direct deposit requirement — in order to avoid a monthly $7 fee, you need to make at least one direct deposit (likely from a paycheck or retirement payment) per statement cycle.

So, if you do not receive a paycheck or do not want to direct your funds into this account, this is probably not the account for you. 

Another option is Capital Bank’s interest checking account. This account pays a small amount of interest on deposits (interest rates depend on location and are available at your local branch). There is a monthly fee of $12, which is waived for customers who have total deposits of $5,000 among all Capital Bank accounts.

Both the regular and the interest checking account have some appealing additional features. First of all, your money should be easy to access. Capital Bank is part of the Allpoint ATM network, which is a nationwide network of surcharge-free ATMs, located at places like pharmacies, credit unions and other banks.

Likewise, you can also access your account through Capital Bank’s website or mobile app, with features like mobile check deposit and account activity alerts. Lastly, checking account holders receive bonus rates on CDs — read more about those in the CD section below.

Where Can I Find Capital Bank?

Capital Bank’s most substantial footprint is in North Carolina, where it has its greatest concentration of branches. It also has locations in South Carolina, Florida, Virginia, and Tennessee. It is part of the same family of businesses as First Tennessee bank, and customers of either bank can access services at all bank branches.

What Can You Do Online With Capital Bank?

There are a multitude of services available through Capital Bank’s website and mobile app. These include automatic bill pay, transfers between accounts, budgeting tools, mobile check deposits and account activity alerts. Best of all, all of these features are free.

How Do I Access My Money?

If you simply want to check up on your account, the website or mobile app are a great way to go. To withdraw funds, you can drop into a branch or use an ATM. Capital Bank is a member of the Allpoint ATM network, which has surcharge free ATMs all around the country. However, in order to use these ATMs, you need to have a checking account with Capital Bank — if you only have a savings account you may not get access.

How Can I Save More Money With Capital Bank?

There aren’t many great options for high-interest deposit accounts at Capital Bank. The highest interest rates are on certificates of deposit, but these are lower than rates on CDs at many other banks. In short, if you want to increase your savings at Capital Bank, the best way to do so is depositing more money.

What’s the Process for Opening an Account With Capital Bank?

If you want to open an account online, you can do so through Capital Bank’s website. The process requires an ID of some sort, your Social Security number and date of birth and some contact information. You also need an account funding source, like the account and routing numbers for another bank account.

Another option for opening an account is to do so at a Capital Bank branch. This process is straightforward, and requires the same basic information as the online process.

What’s the Catch?

If you are looking for high interest rates, Capital Bank is not a great choice. Rates on their savings accounts and certificates of deposit are fairly low. 

The bank’s ATM policy is also worth noting. While checking accounts have full ATM access, including access to the Allpoint ATM network, other accounts need to be linked to a checking account to get that same access. So if you are planning on opening a savings account and want to be able to access your money through an ATM, you will also need to open a checking account.

Bottom Line

Capital Bank is a regional bank, with more than 300 branches spread throughout the Southeast. Though it offers convenience for those who are located in that region, many of its account features are less-than stellar. Rates are not particularly high, and ATM access on savings accounts requires also signing up for a checking account.