Capital One 360 and Discover Top-Rated Direct Banks

July 3, 2017, Written By Bill Hardekopf

According to J.D. Power’s first Direct Retail Banking Satisfaction Study, Capital One 360 is the highest ranked direct bank in terms of customer satisfaction. It earned a score of 882 (out of a possible 1,000 points). Discover was close behind, earning 869 out of 1,000 points.

A direct bank is one without any branches that offers services remotely through online banking, telephone banking, mobile banking, ATMs and the mail.

Capital One 360 earned top marks because it offers the lowest incidence of ATM fees, overdraft fees, and fee structure changes of the nine banks included in the study. It is also received points for online and mobile platforms that offer easy navigation and a pleasing appearance.

Discover scored highly due to the following features:

  • Competitive interest rates on CDs, IRA CDs, savings and money market accounts
  • Cashback Checking with no monthly fees or balance requirements
  • Savings accounts with no fees or balance requirements
  • 24/7 customer service from U.S.-based customer care representatives
  • An online resource center with interactive calculators

The study, which surveyed 2,629 direct bank customers in the United States, found direct banks are outperforming traditional retail banks. Direct bank users also tend to be more loyal than their traditional banking counterparts. More than three-quarters of direct bank users (76%) said they “definitely will” recommend their bank, and 72% said they “definitely will” reuse their bank, compared to 57% and 56% of traditional bank customers.

E*Trade Bank ranked third in customer satisfaction with a score of 868.



The information contained within this article was accurate as of July 3, 2017. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.