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Capital One 360 is an excellent option overall if you'd like to bank with a popular online financial institution with great savings rates.
It's also listed as one of our best online banks because it has strong customer service and manageable bank accounts.
What is a Capital One Savings Account?
Capital One 360 Performance Savings
Capital One, Member FDIC
Insider’s Rating
4.5/5
Perks Rate as of 4/11/24
Earn 4.25% Annual Percentage Yield (APY) on any balance. FDIC Insured.
Fees
no monthly service fee
Annual Percentage Yield (APY)
4.25%
Minimum Opening Deposit
$0
Bonus
N/A
Pros
- Competitive APY
- No opening deposit or minimum account balance
- No monthly service fee
- Easy to save for various goals
- 24/7 live chat
Cons
- Limited access to customer service by phone
Insider’s Take
Capital One is a strong bank overall. You'll earn competitive interest rates on online savings accounts and CDs.
Product Details
- Over 280 branches in NY, LA, TX, MD, VA, NJ, and Washington, DC
- Interest compounded daily, paid monthly
- FDIC insured
Capital One is a large, nationwide online bank. Unlike most online banks, Capital One has branches across the U.S.
It offers two savings accounts: Capital One 360 Performance Savings, which is a general account, and the Capital One 360 Kids Savings Account, which is a more specialized savings account for kids that parents can open. Capital One 360 Kids Savings Account interest rates are significantly lower than Capital One 360 Performance Savings's rates.
Capital One Savings Rates
The Capital One 360 Performance Savings account pays 4.25% APY (Annual Percentage Yield) on all account balances. This is significantly higher than the national average of 0.45% APY.
Capital One pays much higher rates than you'll earn with brick-and-mortar banks. You'll find better rates at other online banks, as there are savings accounts with over 5% interest, but because rates fluctuate, the bank with the highest rate will depend on when you look.
Capital One Savings Pros and Cons
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Compare Today's Rates
Key Capital One Savings Features and Benefits
Capital One Savings Interest Rates
Capital One 360 Performance Savings has a good interest rate, but it isn't as high as the best savings accounts for high interest rates. Most of the best interest rates are with smaller banks or credit unions that either don't have physical branches or only have a few. If you want to be able to bank in-person nationwide, Capital One might offer the best of both worlds.
The bank compounds interest monthly instead of weekly or daily, which could make a difference depending on how much money you're storing in the account. Use a compound interest calculator to discover how big of a difference it will make for your savings.
Capital One Savings Monthly Maintenance Fees
Capital One 360 Performance Savings doesn't charge monthly maintenance fees or a minimum opening deposit, making it a good bank if you want to avoid bank fees. The only fees Capital One will charge are fees to send a wire transfer or make a cashier's check.
While Capital One doesn't charge fees for overdrafts, it also doesn't let you overdraft at all with your savings account. It's still one of the best banks for overdrafts for checking accounts due to that account's overdraft protection features, though. You also might be charged $2 or more if you use an out-of-network ATM.
Online and Mobile Capital One Savings Access
Capital One offers more ways to access your account than most online banks. You can physically go into a branch to bank with Capital One; you can also use Capital One's mobile banking app, website, or phone line for your banking needs.
Capital One Customer Service and Support
Capital One doesn't offer 24/7 customer service, but it does offer extended customer service hours every day of the week. Its automated services are up 24/7, however, so if your question can be answered without the help of a real person, you won't need to wait.
How to Open a Capital One Savings Account
Step-by-Step Guide to Opening a Capital One Savings Account
You can open a Capital One 360 Performance Savings account online, over the phone, or in-person at a branch.
You'll want to gather what you'll need to open a bank account before you start the application process. For Capital One, that includes your name, date of birth, mailing address, email, phone number, employment information, annual income, Social Security number, and citizenship information. You'll also need to be a U.S. citizen or permanent resident. You'll fill out an application with your information, and you'll be able to open an account as soon as you pass a credit check.
Capital One does not allow you to use your individual taxpayer identification number to open an account unless you go into one of its physical locations.
Capital One Initial Deposit and Minimum Balance Requirements
Capital One doesn't have minimum opening balance requirements to open a savings account, but you will need to put some amount of money in your account before 60 days are up if you want to keep your account open.
Managing Your Capital One Savings Account
Tips for Maximizing Capital One Savings
Luckily, Capital One 360 Performance Savings doesn't require you to keep a certain amount of money in it to avoid fees or get the highest interest rate. It does offer some perks to help you figure out how to budget your savings, though.
Capital One 360 Performance Savings works like a savings account with buckets, in that it lets you make multiple savings accounts that can be labelled for individual savings goals. It also lets you set up automatic transfers, ensuring that a part of your paycheck is saved every time.
Understanding Capital One Savings Account Fees and Charges
Capital One 360 Performance Savings doesn't come with a lot of fees. The main one to be aware of is its out-of-network ATM fees; you might be charged $2 or more each time you use an out-of-network ATM, and Capital One does not reimburse out-of-network ATM fees. The best banks for avoiding ATM fees will reimburse a certain amount of out-of-network ATM fees each month.
Capital One Savings FAQs
What types of savings accounts does Capital One offer?
Capital One offers two types of savings accounts: the Capital One 360 Performance Savings, a general account with a good interest rate, and the Capital One 360 Kids Savings Account, an account designed for parents who want to open a savings account for their child.
Are there any fees associated with Capital One savings accounts?
The Capital One 360 Performance Savings isn't associated with a lot of fees; it doesn't have any monthly service fees or minimum opening deposit, it doesn't charge for ACH payments, and it doesn't charge for overdraft (although it also doesn't let you overdraft from a savings account). It does charge for outgoing wire transfers and to make a cashier's check, though, and you might be charged $2 or more if you use an out-of-network ATM.
How competitive are Capital One savings interest rates?
Capital One savings interest rates are competitive for brick-and-mortar banks, but not quite as competitive in the online banking sphere. Still, if you want to bank in-person, this might be a good choice for you.
Who is eligible to open a Capital One savings account?
U.S. citizens or permanent residents who have a Social Security number and a physical address are eligible to open a Capital One savings account, assuming they pass a credit check. You can also use your individual taxpayer identification number to open an account as long as you go to one of its physical locations.
How can I maximize my savings with a Capital One account?
The Capital One 360 Performance Savings comes with some budgeting tools to help you maximize your savings. Consider making multiple accounts to save for specific savings goals or setting up automatic transfers so you're saving money each paycheck.
How Capital One Savings Rates Compare
Capital One Savings vs. Ally Savings
Ally savings rates work similarly to the rates at Capital One. Both pay above the national average on all balances, compound interest daily, and pay interest monthly. Currently, the Ally Savings Account pays 4.20% APY, which is slightly lower than the Capital One 360 Performance Savings.
Both banks also have savings features that allow you to set multiple savings goals in one account. For example, you could create a goal to set aside money for "Emergency Savings" and "Travel Fund," and track your progress over time.
When comparing Capital One savings accounts to other banks, your choice may ultimately depend on what you prioritize in your banking experience.
Capital One is considered an online bank, but it also has over 280 branches in eight U.S. states and Washington, DC. You might prefer Capital One if you live near a branch and want the option to speak with a banker face-to-face.
If you'd like to open other types of savings accounts, also note that Ally has a money market account while Capital One doesn't.
Ally Bank Review
Capital One Savings vs. CIT Bank Savings
CIT Bank high-yield savings accounts are competitive. You can choose between two savings accounts: CIT Bank Savings Connect and CIT Platinum Savings. CIT Bank Savings Connect pays 4.65% APY regardless of your account balance. Meanwhile, the CIT Bank Platinum Savings may be better for higher account balances since it pays 5.00% APY on balances of $5,000 or more.
Keep in mind that savings rates fluctuate, so just because one bank pays higher rates now doesn't mean that will always be the case.
If you'd like to open a savings account with a $0 minimum opening deposit, Capital One will likely stand out to you more.
CIT Bank Review
Is a Capital One Savings Account Right For You?
Capital One 360 Performance Savings may be a great option if you're looking for an account with a $0 minimum opening deposit and no monthly service fees. It also offers a solid rate, but bear in mind the best high-yield savings accounts may offer even higher interest rates right now.
Why You Should Trust Us: How We Reviewed Capital One 360 Performance Savings
We rate bank accounts on a scale from zero to five stars. For our savings account review, we used our bank account methodology which looks at interest rates, minimum opening deposits, monthly service fees, customer support availability, mobile app ratings, and the ethics of the company to determine savings account ratings.
Personal Finance Reviews Editor
Laura Grace Tarpley (she/her) is an expert in mortgage rates, refinance rates, lenders, bank accounts, and borrowing and savings tips for Personal Finance Insider. She worked on Business Insider's "The Road to Home" series, which won a Silver award from the National Associate of Real Estate Editors.She has written about personal finance for over seven years. Before joining the Business Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU.
Personal Finance Insider editorial fellow
Kit Pulliam (they/them) is a banking expert who specializes in certificates of deposit, savings accounts, and checking accounts. They’ve been reporting, editing, and fact-checking personal finance stories for more than four years.ExperienceKit has spent their career making complicated concepts more accessible to the average person. As a tutor in math and reading comprehension after college, they melded the certainty of numbers with the flexibility of words, a skill that has served them in the personal finance field since.Before Business Insider, Kit was an editorial specialist for Tax Analysts, diving into the tax code to help readers get the best information about a confusing but necessary subject.They find banking similar to taxes in that way: There are some things everyone needs to know because just about everyone needs to work with a bank — and you don’t want to end up with an account that doesn’t serve your needs.As interest rates change, they enjoy the fast pace of reviewing rates for products like CDs and high-yield savings, which can change daily and have a direct impact on readers’ money.ExpertiseTheir expertise includes:
- Certificates of deposit
- Savings accounts
- Checking accounts
- CD rates
- Bank reviews
EducationKit is an alumnus of Vanderbilt University, where they studied English and psychology and received the Jum C. Nunnally Honors Research Award for their senior thesis.Outside personal finance, Kit enjoys reading, film, video games, and cross stitching. They are based in the DC area.
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