A decent 0.75% APY, no fees and no minimums make this a popular savings option.
Savings accounts are popular for parking your money and accumulating interest. And if you’re comfortable online, you’ll find options offering higher yields than you’ll typically find at your local bank, not to mention more dynamic features.
Here, we break down what you can expect with just one high-yield savings account: a deposit account offered by the online-only Capital One 360.
What is Capital One 360 known for?
Capital One 360 is an online bank owned by — you guessed it — Capital One, a Fortune 500 company that’s of the 10 largest commercial banks in the US.
Capital One offers financial services to commercial clients, small businesses and consumers across the US, Canada and the UK. It specializes in credit cards, home loans and banking and savings products that are highly rated among its customers.
To attract a younger audience, it also runs more than 20 Capital One Cafes, where you access free and speedy Wi-Fi, talk to a representative or recharge your phone or tablet over ethically sourced coffee and treats.
What are the benefits of a Capital One 360 savings account?
A high-yield account with Capital One 360 offers several money-saving advantages:
- High 0.75% APY. While not as high as some other online banks, the 0.75% APY is much higher than many national competitors that offer a dismal 0.05% APY.
- No minimum balance. Deposit as much or as little as you want into this savings account.
- No maintenance fees. Keep your savings goals on track with no associated fees.
- Automatic Savings Plan. Speed up your savings with automatic fixed transfers from your other Capital One 360 bank accounts.
- No initial deposit required. Open a savings account with Capital One 360 for free.
What should I look out for?
The Capital One 360 savings account offers opportunities to save, but here’s what you need to know before you open one:
- Limited transactions. You’re limited to six withdrawals or transfers from your Capital One 360 savings account monthly. Exceeding this limit could result in the bank closing your account.
- High wire transfer fee. You’ll pay $30 for each outgoing wire transfer you initiate.
- Deposit holds. Cash deposits, ACH direct deposits and incoming wire transfers are available on the same business day they’re deposited. All other deposits are subject to a hold of four business days before you can access the funds.
How do I apply?
1. It takes only a few minutes to apply for your account online: Go to Capital One 360’s savings accounts page and click Open Now.
2. Enter and confirm your email address, and then click Next.
3. Select whether you’re applying for an individual or joint account, and then enter your personal and contact information, citizenship details and employment status. Certify that you’ve read the savings disclosures and that your information is correct, then click Check my information.
4. Continue through the steps to fund your initial deposit. After you’ve confirmed your information, you’ll receive an account number to sign up for your online account.
What other savings options does Capital One 360 Bank offer?
In addition to its no-fee savings accounts, Capital One 360 offers several ways to save:
- 360 Money Market. Sign on for 1.10% APY on balances of $10,000 or more with this no-fee online account.
- 360 CDs. Terms range from six to 60 months with APYs of 0.40% to 2.10%.
- Kids Savings Account. Help your little people save for a rainy day with this no-fee, FDIC-insured account that doesn’t require a minimum balance.
Compare with other savings accounts
I remember hearing about a Capital One scandal a few years back. What was that about?
In July 2012, Capital One Financial was accused of manipulating its customers into paying more for payment protection after they applied and were approved for a new card. It was the first case brought by the government-oversight Consumer Financial Protection Bureau, established as part of the bipartisan Dodd-Frank Act.Found guilty of deceptive marketing, the bank paid out a cool $210 million to settle the claim and refund some 2 million of its customers. For good or for bad, it hasn’t slowed Capital One’s reputation as a fun, easy bank.
Bottom line
You aren’t subject to fees or minimum balances with Capital One 360’s high-yield savings account. Better yet, you’ll get a decent APY of 0.75% — which is higher than most brick-and-mortar banks but lower than offerings by CIT Bank or BankPurely.
Compare your full online options to find an account that offers the highest APY for your needs.