Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.
Business Insider's personal finance team compared Capital One's savings account to the best high-yield savings accounts and found it to be a standard offering. Capital One 360 Performance Savings offers a solid rate with no monthly service fees, but the top high-yield savings accounts offer better savings account rates.
Capital One Savings Account Overview
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. The account for kids interest rates are significantly lower than the standard savings account's rates.
Capital One Savings Accounts
The Capital One 360 Performance Savings account pays 4.10% (rate as of 9/27/24) APY (Annual Percentage Yield) on all account balances. This is significantly higher than the national average of 0.46% 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 keep in mind that rates can fluctuate at any time.
Capital One 360 Performance Savings
Capital One, Member FDIC
Insider’s Rating
4.5/5
Perks Rate as of 9/27/24
Earn 4.10% Annual Percentage Yield (APY) on any balance. FDIC Insured.
Annual Percentage Yield (APY)
Rate as of 9/27/24
4.10% (rate as of 9/27/24)
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
How Capital One Savings Works
Capital One Savings Account Setup Process
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 Savings Earnings
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 Account Fees and Charges
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.
Capital One does charge 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 User Experience and Accessibility
Capital One Savings Mobile App Features
Capital One's mobile banking app is well-rated, having a 4.5 rating on the Google Play store and a 4.8 on the Apple App Store. Capital One is also ranked highest in banking app satisfaction for national banks, according to J.D. Power. If you expect to bank from your phone frequently, Capital One might be a good bank for you.
Capital One Savings Online Banking Experience
Capital One allows you to bank through its online website, which could be helpful if you want to bank from home. You're also able to open new accounts from the website or talk to customer service via live chat if you're a customer.
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.
Capital One Savings Security
Capital One is FDIC-insured, which means that your money will be ensured up to $250,000 per depositor, per account type. Capital One also encrypts your personal information and provides fraud protection through avenues like multi-factor authentication and letting you lock your debit card from the mobile app in case of theft.
Capital One Savings Pros and Cons
Capital One Savings Pros
- Strong digital banking platform
- High interest rate
- $0 minimum opening deposit
- No monthly service fees
Capital One Savings Cons
- Other online banks may offer higher interest rates
Is a Capital One Savings Account Right For You?
Capital One 360 is an excellent option overall if you'd like to bank with a popular online financial institution with decent savings rates and in-person branches. It's also listed as one of our best online banks because it has strong customer service and manageable bank accounts. You can find smaller financial institutions with 5% interest savings accounts, though, so if you're only looking for a high-yield savings account you might find more compelling options elsewhere.
Capital One Savings Account Alternatives
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. Currently, the Ally Savings Account pays 4.00% 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 4.35% APY regardless of your account balance. Meanwhile, the CIT Bank Platinum Savings may be better for higher account balances since it pays 4.70% 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
Why You Should Trust Us: How We Reviewed Capital One 360 Performance Savings
For our Capital One savings account review, Business Insider's personal finance team uses a bank account methodology that rates bank accounts on a scale from zero to five stars. We looked 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 for Capital One.
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.
What interest rates does Capital One offer?
Current Capital One's savings account interest rates are 4.10% (rate as of 9/27/24) APY for Capital One 360 Performance Savings and 2.50% APY for Capital One 360 Kids Savings Account.
How do I open a Capital One savings account?
There are a few ways you can open a Capital One savings account. You can go to the Capital One website and fill out an application, you can open an account over the phone with customer service, or you can go into an in-person Capital One location.
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.
Is Capital One secure?
Yes, Capital One is secure. Capital One is FDIC-insured, so your savings are safe up to $250,000 for an individual account or $500,000 for a joint account. Capital One also has fraud protection features, such as making it easy to turn your debit card off in the mobile app if it's stolen.
Banking reporter
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.ExperienceIn college, Kit worked as an undergraduate research assistant in a psychology lab. While there, they found that they were passionate about writing and helping others write about topics that matter.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.Their work has been featured in Business Insider and MSN. They were part of the My Financial Lifeseries with Business Insider.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.
Compliance and Operations Associate
Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
Top Offers From Our Partners
Western Alliance Bank High-Yield Savings Premier Take advantage of today's rates and earn 5.01% APY on your entire account balance The annual percentage yield (APY) is accurate as of 10/8/2024 and subject to change at the Bank’s discretion. Refer to product’s website for latest APY rate. Minimum deposit required to open an account is $500 and a minimum balance of $0.01 is required to earn the advertised APY.
Editorial Note: Any opinions, analyses, reviews, or recommendations expressed in this article are the author’s alone, and have not been reviewed, approved, or otherwise endorsed by any card issuer. Read our editorial standards.
Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
**Enrollment required.
