Capital One does offer a high yield savings account called 360 Performance Savings

Capital One's 360 Performance Savings account is a savings product that pays interest on the money you deposit. It is offered through Capital One Bank, which is an online bank — meaning you manage it through a website or app rather than visiting a physical branch.

The account has no monthly maintenance fee and no minimum balance requirement to open it. You can deposit money, earn interest on your balance, and withdraw funds whenever you need them. The interest rate changes over time based on what the Federal Reserve does with its benchmark rates, so the amount you earn will go up or down.

This account is different from a regular savings account because "high yield" means the interest rate is higher than what most traditional banks offer. However, the actual rate varies depending on market conditions, so you should check Capital One's website to see the current rate before opening an account.

Key Takeaways

  • Capital One's 360 Performance Savings account charges no monthly fee and has no minimum opening deposit.
  • Interest rates on this account change with Federal Reserve decisions, so the rate you earn today may be different in three months.
  • You can open and manage the account entirely online through Capital One's website or mobile app.
  • The account includes FDIC insurance up to $250,000, which protects your money if the bank fails.
  • You can withdraw money at any time, though some transfers may take one to two business days to complete.

How the interest rate works

Capital One advertises a rate for 360 Performance Savings, but that rate is not locked in. It changes whenever Capital One decides to change it, which usually happens when the Federal Reserve raises or lowers its benchmark interest rate. When rates go up in the economy, Capital One typically raises what it pays you. When rates fall, your earnings fall too.

The rate you see advertised is what new customers get when they open an account that day. Existing customers may earn a different rate depending on when they opened their account and what Capital One's policies are. You should log into your account regularly to see what rate you are currently earning, or check Capital One's website for the posted rate.

How to open a 360 Performance Savings account

You can open the account online through Capital One's website without visiting a branch. You will need to provide your name, address, date of birth, and Social Security number. Capital One will verify your identity and check your banking history through ChexSystems, which is a system banks use to see if you have had problems with previous accounts.

The process usually takes a few minutes. Once your account is open, you can transfer money from another bank account or deposit a check using your phone's camera. Some transfers from other banks take one to two business days to arrive.

Limits on how often you can withdraw

Federal law used to limit savings accounts to six withdrawals per month, but that rule changed in 2020. Capital One's 360 Performance Savings account now allows unlimited withdrawals and transfers. This means you can move money out whenever you need it without hitting a limit.

However, transfers to accounts at other banks may take one to two business days to process. Transfers within Capital One itself are usually faster. If you need cash when ready, you can use Capital One's ATM network or visit a Capital One Café location in some cities.

FDIC insurance and account safety

Your money in a 360 Performance Savings account is protected by FDIC insurance up to $250,000. FDIC stands for Federal Deposit Insurance Corporation, a government agency that guarantees deposits at member banks. If Capital One Bank fails, the FDIC will return your money up to that limit.

If you have more than $250,000 in savings, only the first $250,000 is protected in a single account. You can open multiple accounts at different banks to protect larger amounts, or ask Capital One about other account types that might offer additional coverage.

How this account compares to other savings options

High yield savings accounts at online banks like Capital One typically pay more interest than savings accounts at traditional brick-and-mortar banks. However, rates change frequently, and different banks offer different rates at different times. A high yield savings account at one bank might pay more than Capital One's account one month and less the next month.

Money market accounts are another option that sometimes pay similar rates but may require a higher minimum balance. Certificates of deposit (CDs) lock your money away for a set time period but often pay higher rates if you can leave the money untouched. Regular savings accounts at traditional banks usually pay much less interest but may offer the convenience of a physical location.

Frequently Asked Questions

Can I use a debit card with my 360 Performance Savings account?

No. The 360 Performance Savings account does not come with a debit card. You can transfer money to a checking account to spend it, or you can use Capital One's ATM network to withdraw cash. If you want a debit card, you would need to open a Capital One 360 Checking account.

What happens if the interest rate drops?

Your balance will still earn interest, but the amount you earn each month will be smaller. For example, if the rate drops from 4.5% to 3.5%, a $10,000 balance would earn about $37.50 per month instead of $37.50. You can move your money to another bank if you find a better rate elsewhere.

Is there a penalty for closing the account early?

No. You can close your 360 Performance Savings account at any time without a penalty. You will need to transfer or withdraw your balance first, then contact Capital One to close the account.

Can I set up automatic deposits to this account?

Yes. You can set up automatic transfers from another bank account on a schedule you choose — weekly, biweekly, monthly, or any other pattern. You can also have your paycheck deposited directly if your employer supports it.

What if I have questions about my account after I open it?

Capital One offers customer service through phone, email, and chat on their website. You can also manage most account tasks through the Capital One app or website, such as viewing your balance, making transfers, and updating your contact information.