Capital One Savings Account Interest Rates: March 2024 – Newsweek Vault (2024)

Vault’s Viewpoint on Capital One

• Capital One offers competitive interest rates for savings accounts.
• Capital One’s highly rated mobile app makes it easy to track your savings, make transfers and set up automatic savings to meet your financial goals.
• You can open an unlimited number of fee-free accounts at Capital One.

Overview of Capital One Savings Accounts

Capital One provides two savings options — the 360 Performance Savings account and the Kids Savings account for children under 18.

Capital One’s interest rate on savings is on the higher end, although it’s not the highest interest rate you can earn. For the 360 Performance Savings account, the APY (annual percentage yield) sits at a competitive 4.35%. The APY for the Kids Savings account is lower, at 2.50%, but still above the national average.

Fortunately, you can open a Capital One savings account online, through its highly rated mobile app or at a branch. You won’t need to pay monthly fees, put down a minimum deposit or maintain a certain balance.

Interest on the 360 Performance Savings and Kids Savings accounts compounds monthly.

The Capital One Kids Savings account is available to children under 18, earning a competitive 2.50% APY compared with other kids savings accounts options.

If they’re under 12, a child’s parent or legal guardian must open the account on their behalf. For kids over 12, a grandparent can open the account. Money can be transferred to and from any linked account with Capital One or a different bank. You can set up automatic savings to make regular deposits for allowance, gifts and other milestones. Like the 360 Performance Savings account, there’s no limit to how many accounts you can open for a child.

Both savings accounts require personal information to set up. The 360 Performance account requires your full name, date of birth, email and mailing address, mobile phone number, annual income and employment information, citizenship information and Social Security number. To open a Kids Savings account, you’ll also need the child’s full name, date of birth, mailing address and Social Security number.

Pros and Cons of a Capital One Savings Account

Pros

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Capital One Savings accounts have much to offer, especially if you’re looking for a no-fee account that pays a competitive interest rate and is easy to open. Here are some of the reasons to consider a Capital One Savings account for yourself or your child:

• Highly rated mobile app
• Multiple savings accounts for different goals
• No fees or account minimums
• Automatic savings

Cons

Although Capital One’s no-fee savings accounts provide several pluses, they might not be the right fit for everyone. Here are some factors to weigh when comparing Capital One to other banks:

• Higher interest rates at online-only banks
• No welcome bonus for opening an account
• Must transfer money to a Capital One checking account or an external account to withdraw funds
• No ATM access

How Much Can You Earn With a Capital One Savings Account?

Capital One offers a competitive 4.35% APY for its 360 Performance Savings account but a less competitive 2.50% APY for its Kids Savings account. Each account earns interest that’s compounded and credited monthly. How much interest you’ll earn depends on the amount of money in the savings account and how long you keep the account open.

The longer you leave the money in an account to help meet your savings goals, the more you’ll earn in interest. The table below shows how much you’d earn in a Capital One savings account over the course of a year, based on the current APY and a $10,000 deposit.

How to Open a Savings Account With Capital One

Here are the directions for opening a Capital One savings account online:

1. After you click “Open account,” you’ll be prompted to log into your Capital One account if you already have one. Logging in will help you open a savings account faster, since Capital One automatically fills in part of the application for you. If you don’t already have an account at Capital One, click “No.”
2. You’ll then click “Continue” to open an account. Enter your legal first and last names on the following screen and click “Continue.”
3. Enter your email address and then click “Continue.” Then, you’ll enter your mobile phone number to obtain account information and verify your identity.
4. Now, you’ll enter your home address and continue to the next screen, where you’ll provide your annual income, job title and current employment status. The next screen asks for your birthdate and Social Security number (SSN).
5. After that, you’ll review the terms and conditions, paperless-statement agreement, privacy policy and SSN verification authorization. You’ll check each box certifying that you’ve read and agreed to the terms and conditions, such as letting Capital One use your personal data to confirm your identity. After clicking “Continue,” your Capital One savings account should be open as long as your application is approved.
6. Once your account is open, you can add a joint account holder, fund the account and set up your preferences.

Opening a Kids Savings account involves adding information about your child or grandchild, too.

Alternatives to a Savings Account With Capital One

Although the Capital One high-yield savings account is a great choice, it’s not the only option. Here are some alternatives to consider.

SoFi High-Yield Savings Account

SoFi Bank might be a great option if you’re looking for a combo of a checking and savings account.

With SoFi, you can get a high-yield savings account at a highly competitive 4.60% APY while enjoying the benefits of checking account features like direct deposit, overdraft protection and mobile banking. The checking portion of the account pays an APY of 0.50%. Direct deposits must be set up to earn these interest rates.

SoFi pays a cash bonus if you set up an eligible direct deposit for your online account. You’ll get $50 if the direct deposit amount is between $1,000 and $4,999 and $300 for a direct deposit of $5,000 or more.

UFB High Yield Savings Account

Another alternative is the UFB Direct high-yield savings account. It offers one of the highest APYs for a high-yield savings account, at 5.25%, and there are no minimum requirements to earn it. Furthermore, you won’t be charged any monthly fees. However, you’ll pay $5 per month if you want paper statements mailed to you. You’ll receive an ATM card to make purchases, which isn’t always an option with an online bank savings account.

In addition to its high-yield savings account, UFB Direct offers a money market account, which is free as long as you maintain at least a $5,000 balance. And if you have more than $250,000 in savings, UFB Direct’s InsureGuard+ Savings feature will protect up to $225 million in deposits. Standard FDIC insurance covers up to $250,000 per bank, depositor and account type.

Citizens Access Savings Account

The Citizens Access online savings account is another great option with no fees or hidden costs. It earns a competitive 4.50% APY on balances of at least $0.01, the minimum deposit required to open the account. Citizens Bank also offers 1-, 2-, 3-, 4- and 5-year CDs, with a 5.00% APY on its 1-year CD and a $5,000 initial deposit.

Citizens doesn’t have any physical branches or ATM access, so you’ll need to link your savings account to an external bank account to make deposits and withdrawals. Its savings accounts and CDs are FDIC-insured.