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Capital One’s primary savings account, the Capital One 360 Performance Savings Account, offers a very competitive APY with no minimum deposit requirement and no monthly or maintenance fees. This can be a great option if you’re looking for a new place to put the money you’re putting aside for today’s emergencies or tomorrow’s goals.
How do Capital One Savings Account rates measure up? Here’s more information on how to save with Capital One and what kind of interest you can expect to earn. Rates are accurate as of May 10, 2022.
Capital One Savings Interest Rates
Capital One’s premier savings account option is designed for savers looking for an easy way to grow their money.
These are the rates for the Capital One 360 Performance Savings Account.
Capital One Savings Interest Rate Overview
Although it operates hundreds of physical 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 due to 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 required to open an account.
While some banks have tiered savings rates, depending on your balance, Capital One applies the same 0.60% APY to all balances. This means that you always get the same relatively high rate whether you save a little or a lot in your account.
Interest is compounded and credited monthly. Capital One uses a daily balance method to calculate interest.
Overall, this account is light on fees. He does not have :
- Monthly fee
- Maintenance fees
- Excess withdrawal fees
You’ll pay $30 for outgoing wire transfers and a $10 fee if you buy a cashier’s check using your savings account balance.
You don’t have to have a Capital One current account to open a Performance Savings Account. But if you have checking and savings, you can link them for easy and even automated savings transfers to help you build your balance.
Capital One encourages savers to open multiple 360 Performance Savings Accounts, for different financial goals.
How much can you earn?
Before you open a savings account, you’ll want to know how much interest you could earn over time. Here’s how your savings could grow over 10 years with a Capital One 360 Performance Savings Account, assuming an initial deposit of $1,000 and APY of 0.60%.
The table assumes that you make no further deposits to your account in the 10 years. An online savings calculator can help you see how your money could grow if you make additional deposits.
You would earn slightly more interest over a 10 year period with a Capital One 360 Performance Savings Account compared to an account at another major bank. A savings account earning only an APY of 0.01% – which is not uncommon – would only earn $1 over a decade, compared to more than 60 times more at Capital One.
Capital One versus other banks
Capital One, the 10th largest bank in the United States by deposits, stands out among the big banks in terms of the interest you can earn on savings. The bank’s APY checking savings account is 10 times the national average savings rate of 0.06%, reported by the FDIC in April 2022.
Capital One is a big name in online banking, but how does the 360 Performance Savings Account compare to the top savings accounts from banks that operate strictly online? They usually offer more generous rates because they have lower costs than banks with physical 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 keep more of their interest income.
Other Capital One 360 savings options
Besides its 360 Performance Savings Account, Capital One 360 offers several other ways to save. It offers certificates of deposit and savings accounts for children.
Capital One 360 CDs come with nine possible terms ranging from six months to 60 months. No minimum deposit is required to open a CD with Capital One.
Capital One 360 CD pricing is just as competitive as savings account pricing. A six-month CD currently offers an APY of 0.50%, and you could earn an APY of 2.15% with a 60-month CD.
The big difference between a CD account and a savings account is accessibility. With a Capital One Performance 360 Savings Account, you can make withdrawals at any time. With CD accounts, you usually cannot withdraw money before maturity, or you will face a CD early withdrawal penalty.
The Kids Savings Account is for young savers. It pays an APY of 0.30% and has no minimum balance requirement or fees.
You can link your Capital One deposit accounts to a children’s savings account for easy transfers and deposits, including recurring automatic deposits.
You can open more than one savings account if your child has multiple savings goals. Each account would earn the same 0.30% APY and have no minimum balance requirement.
Find the best online savings accounts of 2022
Conclusion
Capital One’s savings account interest rates are among the best savings rates available. The 360 Performance Savings Account offers a solid combination of high APY and low fees. Taking the 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 (FAQ)
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 are more likely to come across high yield savings accounts at online banks than at 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 Capital One Performance Savings Account or 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, financial experts recommend keeping at least three to six months of living expenses in an emergency savings account.
Can I have more than one savings account?
Of course, you can keep more than one savings account, and that can make sense if you’re saving for different goals. For example, you can open a savings account for your emergency fund, another to save for a vacation, and yet another to set aside money for a down payment on a house.
