So... pardon the wall of text, but I just wanted to be as detailed as possible in case this info is useful for anyone...
Some of you may not know this, but Capital One currently has two different banks under the same bank holding company: Capital One Bank and Capital One 360. Capital One Bank accounts are more or less defunct now but in the past could only be opened at brick-and-mortar branches, while Capital One 360 accounts can still be opened at branches, Capital One Cafés, or online.
Why is this? Short history lesson: Capital One started as a monoline credit card company and eventually expanded into consumer banking, first acquring some retail bank branches in various states and renaming them Capital One Bank, and later acquiring all US accounts from ING Direct, an online-only "direct bank," and creating Capital One 360. These institutions have been operating separately but with some overlap (360 account holders can use Capital One Bank ATMs, all accounts show up together on the website and mobile app) for a very long time - over 8 years.
Anyway, up until earlier this month I had a "High Yield Checking" account with Capital One Bank and a "360 Performance Savings" account with Capital One 360, but one day they closed my checking account and opened a new 360 Checking account in its place with the same account number but a different routing number. I only noticed when I checked my mobile app and saw the closed account.
The app directed to me to an FAQ page detailing the transition, but I still had some questions so I called in. The rep said they're essentially consolidating all branch bank accounts into 360 accounts, including all checking and savings products, so as to only offer 360 products going forward. It's a gradual switch over many months for all their customers, but that is their end goal. The rep even said to expect many more branch closures in the future, leaving some in high-traffic areas. On the bright side, 360 accounts are now fully serviceable at branches; if you search for older reviews of 360 products, you'll find this wasn't always the case.
I'll definitely miss some features of my High Yield Checking account, like the ATM fee reimbursements and free cashier's checks, but overall I understand why they're making the switch. They probably got tired of managing two separate financial institutions and the increased costs that go along with that.
So yeah, I guess this post is most useful for anyone that has a Capital One Bank account opened at a branch. They really only have branches in eight states (Connecticut, Delaware, Louisiana, Maryland, New Jersey, New York, Texas, Virginia) and D.C., but if you do bank with them, just be on the lookout for changes coming soon.
Also, if anyone has any questions of what the transition is like, I'll try my best to answer them from a long-time (6 year) customer perspective.
That's interesting. My account started as an ING Orange Savings account, which eventually became Capital One 360. I mainly used it for savings purposes, and since they kept things mostly the same, I didn't mind it. That's until I noticed that their HYSA rates we're getting lower and lower, and not reflective of other HYSA rates (thanks MyFICO). I did notice that they have a different savings account with a higher rate and thought of opening one of those, but it seems pointless, especially now that everything is merging. Will all the rates merge or average out?
You likely have the old 360 Savings account. They used to have two different types of online savings accounts: 360 Savings and 360 Money Market. The money market had the more competitive interest rate which better matched other online banks, but you needed a minimum of $10k in the account to get the best rate, otherwise it would be worse than the regular savings.
Sometime last year they discontinued both of those accounts and consolidated them into the 360 Performance Savings. This account gets similar rates to the old money market but without the $10k minimum balance.
You should open a 360 Performance Savings, transfer your money to that account, and close the old 360 Savings. That's what I did with my old money market. It sucks that they make you jump through that hoop rather than automatically converting your account, but it is what it is.