Capital One is a full-service online bank that offers adult and child savings accounts. Higher yields can be found elsewhere, but Capital One’s rates are higher than those of most other large banks, and the accounts are conveniently accessible. The Capital One 360 Performance Savings Account, Capital One’s primary savings account, offers a highly competitive APR with no minimum deposit and no monthly or maintenance fees. It can be an appealing option if you’re seeking a fresh place to save money for today’s crises or tomorrow’s aspirations. Here’s a review of how the Capital One 360 savings account works, including the interest rates and how you can save.
Interest Rates on Capital One Savings
Capital One’s primary savings account is intended for savers seeking for a straightforward way to increase their money.
These are the Capital One 360 Performance Savings Account interest rates.
Account name: Capital One 360 Performance Savings
APY: 3.40%
There is no minimum deposit.
Interest Rates on Capital One Savings
Despite the fact that it has hundreds of physical branches and cafés, Capital One’s savings rates are equivalent to those offered by online-only banks. Because of its attractive interest rates, the Capital One 360 Performance Savings Account is classified as a high-yield savings account.
The account can be opened online, via the Capital One mobile app, or in person at a Capital One bank or cafe. There is no minimum deposit required to open an account.
While some banks provide different savings rates depending on your balance, Capital One offers the same 3.40% APY on all balances. That is, whether you save a little or a lot in your account, you will still receive the same reasonably high rate.
On a monthly basis, interest is compounded and credited. Capital One calculates interest using the daily balance approach.
Overall, this account has few fees. It lacks:
- Monthly charges
- Fees for maintenance
- Excessive withdrawal charges
Outgoing wire transfers cost $30, and cashier’s checks cost $10 if purchased with your savings account balance.
A Capital One checking account is not necessary to open a Performance Savings Account. Nevertheless, if you have checking and savings accounts, you can link them for simple and even scheduled savings transfers to help you boost your balance.
Capital One recommends that consumers open numerous 360 Performance Savings Accounts for various financial goals.
How Much Money Can You Make?
You’ll want to know how much interest you could earn over time before opening a savings account. Use the calculation below to see how much money you stand to earn.
Enter your initial deposit, monthly contribution, and the 3.40% APY to calculate how much you could make over a set number of months or years.
A Capital One 360 Performance Savings Account will generate significantly higher interest over a 10-year period than an account at several other large banks. A savings account with a 0.01% APR, which is normal, would earn only $1 over a decade.
Capital One 360 Performance Savings Account Benefits
While the current 3% APY offered by the Capital One 360 Performance Savings account will not make you wealthy, it is competitive when compared to savings rates over the last few years. It’s also a very competitive rate when compared to other online savings accounts offered by online banks, such as the American Express High Yield Savings account.
There are no monthly or maintenance fees, and there are no minimum deposit restrictions with the Capital One 360 Performance Savings account. This means that practically anyone can create this account and start earning interest without worrying about your balance going too low or fees eating away at your savings earnings.
A significant benefit of the Capital One 360 Performance Savings account is the power placed in the palm of your hand via the Capital One mobile app, which has received rave ratings from consumers across all major platforms. We like how the Capital One app lets you manage your savings account from the palm of your hand, including depositing checks. The Capital One mobile app also has built-in savings features and allows users to move money seamlessly between Capital One accounts and external accounts at other banks.
The Capital One 360 Performance Savings account is also extremely simple to open, whether in person at a Capital One bank office, online, or via the Capital One app. According to Capital One, opening an account takes five minutes or less, but you must transfer money and fund the account within 60 days.
Capital One vs. Other Banks
Capital One, America’s tenth-largest bank by deposits, stands out among major banks in terms of savings interest rates.
True, Capital One is a household name in online banking, but how does the 360 Performance Savings Account compare to the top savings accounts from online-only banks? They often provide higher rates because their costs are lower than those of traditional banks.
While there are a few exceptions that provide greater rates than Capital One, it ranks near the top of the list overall. The bank is also fee-friendly, which makes it easier for depositors to keep more of their interest returns.
Capital One 360 offers a variety of different methods to save in addition to its 360 Performance Savings Account. It provides certificates of deposit as well as savings accounts for children.
Capital One 360 CDs are available in nine different maturities ranging from six to sixty months. To open a CD with Capital One, no minimum deposit is required.
Capital One 360 CD rates are just as low as savings account rates. A six-month CD currently has an APY of 3.30%, and a 60-month CD has an APY of 4.10%.
CD vs Savings Account
The main distinction between a CD and a savings account is accessibility. With a Capital One 360 Performance Savings Account, you can withdraw funds whenever you choose. You can’t usually withdraw money from a CD account before it matures, or you’ll suffer a CD early withdrawal penalty.
The Kids Savings Account is intended for first-time savers. It offers a 0.30% annual percentage yield with no minimum balance restriction and no fees.
You can link your Capital One deposit accounts to a Kids Savings Account for simple transfers and deposits, including regular recurring deposits.
If your child has numerous savings objectives, you could open more than one savings account. Each account would earn the same 0.30% APY and require no minimum balance.
Capital One 360 Savings Review And Ratings
Capital One 360 may be a good option if you want a user-friendly online bank with no monthly service fees or overdraft fees.
General Assessment
Capital One has one of the best combinations of internet banking benefits — no checking or savings fees, a competitive savings rate, and high CD rates — with a physical presence. It provides a top-tier banking experience with excellent customer service and does not impose overdraft fees.
Best for consumers that desire free checking and savings accounts with high-interest rates, are prone to overdrafts and prefer an online-only bank.
Pros
- Interest rates that are competitive.
- There are no monthly costs.
- There is no minimum balance required to start a checking, savings, or CD account.
- There are no overdraft costs.
Cons
Cash deposits are only accepted at Capital One ATMs; ATMs in partner networks Allpoint and MoneyPass do not accept cash.
No monthly fee and a fixed rate:
The interest rate on the Capital One 360 Performance Savings Account is 3.40% APY, which is much higher than the national average of 0.37%. This account has no minimum deposit requirement and no monthly maintenance cost.
Attractive CD rates and no minimum beginning deposit:
Capital One 360 CD rates compares to those of rival banks and credit unions. There is no minimum balance requirement, and if you withdraw early, the most you will pay is six months’ interest, even on five-year terms. Some banks charge interest for a year.
No monthly cost and collecting interest:
It’s unusual to find a checking account that pays interest without a monthly charge, but Capital One 360 Checking does: 0.10% APY on all balances. There is also no requirement for an opening balance.
ATM network available for free across the country:
Check deposits and cash withdrawals are free at Capital One-branded ATMs as well as ATMs in the Allpoint and MoneyPass networks, for a total of over 70,000 ATMs. Some of these machines are available in CVS®, Target, and Walgreens stores. But, you can only deposit cash via an ATM at one of the over 1,800 Capital One-branded machines. Another method for depositing cash is to use the bank’s mobile app to add cash at a CVS shop.
Banking knowledge
High app ratings and a variety of support options: Capital One 360 accounts offer some of the greatest mobile experiences available from a bank, with outstanding reviews from both iOS and Android customers. If you need to speak with someone, representatives are available via phone from 8 a.m. to 11 p.m. EST every day. Eno, Capital One 360’s virtual assistant, can be reached through SMS or app. Capital One Cafes also offer Twitter support and in-person assistance.
Branch locations are an uncommon bonus for an online bank. Capital One Cafes are hybrid offices in certain states where you can explore banking options, speak with a staff, obtain refreshments and snacks, and use free Wi-Fi.
Capital One has locations in less than ten states and Washington, D.C. Yet, the bank has hundreds of branches, which is unusual for online banks, many of which have no branches at all.
Customer satisfaction is well-known: Significantly, Capital One was ranked first in the 2021 J.D. Power National Banking Satisfaction Survey for the second year in a row.
Overdraft fees are not charged:
Capital One will no longer levy fees for overdrafts or insufficient funds as of 2022. Overdraft costs are being eliminated or reduced by an increasing number of banks, although some still charge as much as $37 per overdraft, and some levy the amount up to six times each day.
Overdrafts can be handled in a variety of ways: Customers of Capital One have three alternatives for dealing with overdrafts. You may:
- Allow your bank to automatically reject transactions that would overdraw your account.
- Set up automatic transfers from a linked savings or money market account to cover any overdrafts (some banks charge $10 or more for this service).
Overdrafts can be handled by the bank for free. To be eligible for this overdraft option, you must make frequent deposits to your checking account. When Capital One covers your overdrafts, you must immediately deposit funds to cover the overdraft. If your balance remains negative, the bank may refuse further overdrafts and potentially cancel your account.
Is Capital One 360 Savings Worth It?
This account is worthwhile to explore because of its numerous benefits, ease of use, high APY rate, and accessibility alternatives.
Which Bank Offers 7% Interest On Savings Account?
Banks in the United States do not pay 7% interest, but one credit union, Landmark CU, does, with significant conditions and stipulations.
Can I Withdraw From My Capital One 360 Savings?
Because there is no ATM card, you cannot withdraw funds from your Capital One 360 Performance Savings account. To withdraw money from an ATM, you must first transfer monies to another account, whether it is a Capital One checking account or another bank.
Does Capital One 360 Have Zelle?
Because Capital One does not charge commissions for utilizing Zelle on its platform, you will only gain by adding it to your account.
In Conclusion,
Capital One’s savings account interest rates are among the finest in the industry. The 360 Performance Savings Account provides an excellent combination of a high APY and low costs. Comparing rates, fees, and minimum deposit requirements at various banks will help you identify the best savings account option for your needs.
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