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Capital One’s primary savings account, the Capital One 360 Performance Savings Account, offers a highly competitive APY with no minimum deposit requirement and no monthly or maintenance fees. It can be an attractive option if you’re looking for a new place to stash money you’re putting aside for today’s emergencies or tomorrow’s goals.
How do the Capital One savings account rates measure up? Here’s more on how to save with Capital One and the kind of interest you can expect to earn. Account details and annual percentage yields (APYs) are accurate as of January 2, 2024.
Capital One Savings Interest Rates
Capital One’s main savings account option is designed for savers who are looking for a simple way to grow their money.
These are the rates for the Capital One 360 Performance Savings Account.
Overview of Capital One Savings Interest Rates
Though it operates hundreds of brick-and-mortar branches and cafes, Capital One’s savings rates are comparable to the higher rates paid by online-only banks. The Capital One 360 Performance Savings Account is considered a high-yield savings account because of its attractive rates.
The account can be opened online, through the Capital One mobile app, or at a Capital One branch or cafe. No minimum deposit is needed to open an account.
While some banks have tiered savings rates, based on your balance, Capital One applies the same 4.35% APY to all balances. That means you still get the same relatively high rate whether you save a little or save a lot in your account.
Interest is compounded and credited on a monthly basis. Capital One uses a daily balance method to calculate interest.
Overall, this account is light on fees. It has no:
- Monthly fees
- Maintenance fees
- Excess withdrawal fees
You will pay $30 for outgoing wire transfers, and there’s a $10 fee if you purchase a cashier’s check using your savings account balance.
You’re not required to have a Capital One checking account to open a Performance Savings Account. But if you do have checking and savings, you can link them together for easy and even automated savings transfers to help build your balance.
Capital One encourages savers to open multiple 360 Performance Savings Accounts, for different financial goals.
How Much Can You Earn?
Before opening a savings account, you’ll want to know how much interest you could earn over time. Use the below calculator to see how money much you stand to earn.
Plug in your initial deposit, monthly contribution and the 4.35% APY to see how much you could earn over a specific number of months or years.
You’ll earn quite a bit more in interest over a 10-year period with a Capital One 360 Performance Savings Account compared to an account at many other big banks. A savings account earning a mere 0.01% APY—which is not uncommon—would earn just $1 over a decade.
Capital One vs. Other Banks
Capital One, America’s 9th largest bank by deposits, is a standout among major banks in terms of the interest you can earn on savings.
Capital One is a big name in online banking, but how does the 360 Performance Savings Account measure up to the best savings accounts from banks that operate strictly online? They typically offer more generous rates because they have lower costs than banks with brick-and-mortar locations.
While there are a few outliers offering higher rates than Capital One, it’s near the top of the pile overall. The bank is also fee-friendly, making it easier for savers to hold on to more of their interest earnings.
Other Capital One 360 Savings Options
Besides its 360 Performance Savings Account, Capital One 360 has a couple of other ways to save. It offers certificates of deposit, and savings accounts for kids.
Capital One 360 CDs come with nine possible terms ranging from six months to 60 months. No minimum deposit is needed to open a CD with Capital One.
The Capital One 360 CD rates are just as competitive as the savings account rates. A six-month CD currently offers an APY of 4.35%, and you could earn a 4.10% APY with a 60-month CD.
The big difference between a CD account and a savings account is accessibility. With a Capital One 360 Performance Savings Account, you could make withdrawals any time you want. With CD accounts, you generally can’t withdraw money before maturity, or you’ll face a CD early withdrawal penalty.
The Kids Savings Account is designed for young savers. It pays a 2.50% APY and has no minimum balance requirement and no fees.
You can link your Capital One deposit accounts to a Kids Savings Account for easy transfers and deposits, including recurring automatic deposits.
You could open more than one savings account if your child has multiple savings goals. Each account would earn the same 2.50% APY and have no minimum balance requirement.
Find The Best High-Yield Savings Accounts Of 2024
Capital One’s savings account interest rates are among the best savings rates available. The 360 Performance Savings Account offers a solid combination of a high APY and low fees. Taking time to compare rates, fees and minimum deposit requirements at different banks can help you find the best savings account option for your situation.
Frequently asked Questions (FAQs)
What is a high-yield savings account?
A high-yield savings account is an account that offers an above-average interest rate and APY. You’re more likely to encounter high-yield savings accounts at online banks than traditional banks. In addition to higher rates, high-yield accounts may come with fewer pesky fees.
Does Capital One offer money market accounts?
Capital One has stopped offering new customers money market accounts, which are interest-bearing accounts that often come with checks and debit cards. Savers can still earn interest with a Performance Savings Account or a Capital One CD account.
How much should I keep in savings?
Deciding how much to keep in savings can depend on your financial situation, needs and goals. As a general rule of thumb, financial experts recommend keeping at least three to six months’ worth of living expenses in a savings account for emergencies.
Can I have more than one savings account?
Sure, you can keep more than one savings account, and that might make sense if you’re saving for different goals. For example, you might open one savings account for your emergency fund, another to save toward a vacation and yet another to set aside money for a down payment on a home.