What is the interest rate on Capital One savings accounts?
The 4.25% annual percentage yield (APY) offered with Capital One's 360 Performance savings account is competitive with the savings rates at several major banks. The 360 Performance savings account and the kids' savings account don't have minimum opening deposits, minimum balance requirements or maintenance fees.
Overview of Capital One Savings Interest Rates
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.
As of April 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.
Rate information - The Interest Rate on your account is 0.2996 % with an Annual Percentage Yield of 0.30% . The interest rates and annual percentage yields are variable and may change at any time at our discretion. Compounding and crediting - Interest on your account will be compounded and credited on a monthly basis.
Is Capital One Good for Savings? Unlike other banks that charge monthly fees and require minimum deposits of $500 or more, Capital One's savings accounts have no minimum deposit or monthly fees. Capital One is a good choice for those looking for a basic savings account to save for their goals.
- BrioDirect High Yield Savings Account: 5.35% APY.
- Ivy Bank High-Yield Savings Account: 5.30% APY.
- TAB Bank High Yield Savings: 5.27% APY.
- UFB Secure Savings: Up to 5.25% APY.
- EverBank Performanceâ„ Savings: 5.15% APY.
- Bask Interest Savings Account: 5.10% APY.
| Provider | Rate (AER) | Can you skip months? |
|---|---|---|
| Co-operative Bank | 7% variable for one year | Yes |
| Skipton BS (must have been a member since before 11 Jan 2024) | 7% fixed for one year | Yes |
| Coventry BS (must have been a member since 1 Jan 2023) | 6.75% | Yes |
| Nationwide | 6.5% variable for one year | Yes |
| Account Name | APY (Annual Percentage Yield) Accurate as of 4/17/2024 | Minimum Account Opening Balance |
|---|---|---|
| UFB Secure Savings | 5.25% | $0 |
| EverBank Performanceâ„ Savings | 5.15% | $0 |
| CIT Bank Platinum Savings | 5.05% (with $5,000 minimum balance) | $100 |
| Wealthfront Cash Account | 5.00% | $1 |
| Top standard easy-access accounts. Here are the highest paying traditional savings accounts. | ||
|---|---|---|
| Monument Bank | 5.01% | App (no joint accounts) |
| Cynergy Bank | 5% (rate drops to 3.75% after 12 months) | Online |
| Close Brothers | 5% (rate drops to 1% if balance drops below min deposit) | Online |
| Bank | APY | Min. deposit to open |
|---|---|---|
| DollarSavingsDirect | 5.00% | $0 |
| CommunityWide Federal Credit Union | 5.00% | $1 |
| Laurel Road | 5.00% | $0 |
| Varo Bank | 3.00% to 5.00% | $0 |
Is Capital One 360 savings account worth it?
Top perks. 4.25% APY: If you're opening a high-yield savings account, it's because you're looking to get better returns on your savings. The Capital One 360 Performance Savings is up there in the ranks of the best online savings accounts due to its higher-than-average APY on all balances.
FDIC deposit insurance protects Capital One customers. Bank customers don't need to purchase deposit insurance—it's automatic for any deposit account opened at Capital One. Deposits are insured up to $250,000 per depositor, per ownership category at Capital One.
Capital One Performance Savings accounts don't come with an ATM card, which means there is no way to deposit cash directly into the account or withdraw it unless you visit a physical branch.
- The 360 Performance Savings account doesn't include a debit card or an ATM card.
- Higher rates can be found at other online-only banks.
This is an online savings account with no fees and no minimum to open or keep the account. That means every dollar you earn is yours to save. Are savings accounts FDIC-insured? Capital One's 360 Performance Savings accounts are insured by the FDIC up to allowable limits.
Fitch Ratings - New York - 21 Feb 2024: Fitch Ratings has affirmed Capital One Financial Corporation's (COF) Long- and Short-Term Issuer Default Ratings (IDRs) at 'A-' and 'F1', respectively, and has affirmed the bank's Viability Rating (VR) at 'a-'.
| Account type | APY | Minimum opening deposit |
|---|---|---|
| Newtek Bank | 5.25% | $0 |
| Quontic Bank | 4.50% | $100 |
| Ally Bank | 4.25% | $0 |
| Cloudbank 24/7 | 5.26% | $1 |
Savings, money market, CD and rewards checking accounts are among the safest places for your money, as long as your bank or credit union is insured by the Federal Deposit Insurance Corp. or the National Credit Union Administration.
The IRS treats interest earned on a savings account as earned income, meaning it can be taxed. So, if you received $125 in interest on a high-yield savings account in 2023, you're required to pay taxes on that interest when you file your federal tax return for the 2023 tax year.
| Who Offers It? (Bank or Building Society) | Type or Name of Savings Account | Interest Rate |
|---|---|---|
| First Direct | Regular saver | 7.00% |
| Ford Money | Flexible saver | 4.60% |
| Goldman Sachs | Online savings account | 4.75% |
| Goldman Sachs | Cash ISA | 4.75% |
What is the best thing to do with a lump sum of money?
Upon receiving a lump sum, the immediate question is where to store it. A savings account is a common choice, offering a secure place to keep your money while earning some interest. There are several types of savings accounts designed to cater to different needs and goals.
A savings account is a safe place to put your money when you can't afford to lose any or think you'll need it in an emergency. It's also a good place to put some of your investments as a hedge against losses – you can't lose everything if some of your money is in an ordinary savings account, after all.
The rate environment is favorable
In fact, rates on high-yield savings accounts are currently hovering around 5%, and you may be able to find something even higher if you shop around for an online bank. On a $10,000 deposit, that would equate to $500 after one year.
All deposits at this Capital One banking institution are FDIC-insured to at least $250,000 per depositor, per ownership category.
Key Takeaways. There's no limit to how many savings accounts you can have. Having just one savings account can simplify money management. Having multiple savings accounts may let you easily stash cash for different goals.
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