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Capital One 360 Performance Savings Account Interest Rate 2024

  • Capital One offers competitive savings rates.
  • As of June 2024, the Capital One 360 Performance Savings Account has a variable APY of 4.25%.
  • How much you earn in interest depends on your initial deposit, how much money you deposit each month and how many withdrawals you make each year.
  • A Capital One 360 Savings Account may be a good fit for you if you want to take advantage of high rates without paying monthly fees.
  • You can open a Capital One 360 Performance Account without applying for a credit card or establishing a checking account with Capital One.
  • Alternative high-yield savings accounts include Western Alliance (5.22% APY) and Synchrony (4.75% APY).

One of the best ways to secure your financial future is to get into the habit of saving.

Money doesn’t solve every problem, but it sure helps when your car breaks down, the furnace stops working or you can’t work due to illness or injury. Once you get into the habit of saving money, you can grow your balance even faster by opening an account with a high interest rate.

The Capital One savings account interest rate changes with the market, but it’s often higher than the rates offered by other banks. To help you maximize your savings, we took a look at the Capital One 360 Performance Savings Account, which has no monthly fees and no minimum balance requirement.?

Join us as we answer these questions:

  • How much can you expect to earn with the Capital One 360 Performance Savings Account?
  • Is this Capital One 360 account a good fit for your needs?
  • What other savings account options does Capital One offer?

Our top picks for savings accounts

Capital One savings account interest rates

The Capital One 360 Performance account is a high-yield savings account.

This means that it offers a much higher interest rate than a traditional savings account. According to the National Credit Union Administration, it’s common for banks and credit unions to offer?rates lower than 1%, thus making it difficult to grow your account balance. A high-yield savings account gives you access to much better rates.

As of June 2024, the Capital One 360 Performance Savings Account has a variable?APY of 4.25%. APY stands for annual percentage yield. It’s the amount of interest you earn if you leave your money in a savings account for a full year. Capital One doesn’t offer tiered rates, so you get the same rate whether you have a balance of $500 or $500,000.

This high-yield savings account also has no minimum deposit requirement, no minimum balance requirement and no withdrawal limit. However, Capital One does reserve the right to require you to give seven days’ notice before you make a withdrawal. Per the company’s terms of service, this “hardly ever happens,” but be aware that Capital One does have the right to require advance notice of withdrawals.

Best of all, the Performance Savings Account has no monthly fees or maintenance fees. You can open a Capital One account online or visit a local branch to discuss your needs with a banker.

Capital One 360 Performance Savings Account Interest Rate & Fees

APY Monthly fee Minimum opening deposit
4.25% $0 No minimum deposit requirement

How much can I earn with the Capital One savings account?

With Capital One, your APY is compounded and credited monthly, making it a little easier to reach your goals.?

Here’s an example of how monthly compounding benefits you.

Let’s say you deposit $2,000 into your high-yield account. To calculate how much interest you’ll earn per month, you need to divide your APY by 12. In this case, it works out to 0.3625% (4.25% divided by 12). Now divide 0.3625 by 100. That’s 0.003625.

Now comes the fun part. To determine your interest earnings for the month, multiply your balance ($2,000) by 0.003625. That works out to about $7.25. This is your interest earnings for the first month.

Once Capital One credits the interest to your account, you’ll have $2,007.25. Assuming you don’t add more money to your high-yield savings, you’d multiply $2,007.25 by 0.003625 to figure out your interest earnings for the second month. This works out to just under $7.28, bringing your total balance to about $2,014.53. Every month, you earn a little bit more thanks to the magic of compounding.

Here’s another example to show you how much you can earn if you make regular deposits.

Assume that you deposit $1,000 when you open your account and $100 every month thereafter. During the first month, you’d earn $3.63 in interest ($1,000 x 0.003625), bringing your balance to $1,003.63.

Once you deposit your first $100, your balance becomes $1,103.63, increasing your interest earnings to $4.00 ($1,103.63 x 0.003625) for the second month. This gives you a balance of $1,107.63. As long as you keep adding money and letting the interest compound, your balance will keep increasing, allowing you to grow quite the nest egg.

Factors that affect your earnings

Many factors affect the amount of interest you earn with a savings account:

The table below has a few examples to show you how compounding works in real life.*

Number of Years Interest Earned on $500 Interest Earned on $5,000
1 $22.19 $221.89
3 $69.56 $695.65
5 $121.24 $1,212.38

*The calculations shown are just a simple example. Always seek advice from a qualified professional before making important financial decisions or long-term agreements.

How the Capital One savings account interest rate compares

Capital One blows many traditional banks out of the water when it comes to the interest rate on the Performance Savings Account.

As noted previously, Capital One offers an APY of 4.25%. According to the?Federal Deposit Insurance Corporation (FDIC), the interest rate on traditional savings accounts is averaging 0.45%. That’s a huge difference.

The average savings rates published by the FDIC are based on the $2,500 account tier. You may earn a little more if your savings account has a large balance, but most banks still can’t beat the interest rate on this high-yield savings account from Capital One. Additionally, because Capital One 360 gives you the same rate regardless of your balance, it doesn’t matter if you deposit $1,000 or $10,000. You can still benefit from the same APY, maximizing your earning power.

Compared to other big banks, Capital One is extremely competitive. A few banks offer higher savings account interest rates, but they may charge maintenance fees or have high balance requirements. Capital One offers a high interest rate without any fees, giving you the best of both worlds.

For example, CIT Bank Platinum Savings Account offers an APY of 5.00%. However, you can only get 5.00% if you maintain a balance of $5,000 or more. Not everyone has $5,000 available, so not everyone can benefit from the higher interest rate. If this describes your situation, you’re better off opening a Capital One savings account.

Is a Capital One savings account right for you?

This high-yield option may be right for you if you’re looking to maximize your interest earnings without paying fees or having to maintain a minimum balance.?

Capital One is a well-established bank with branches all over the United States. If you’re looking to open a savings account with one of the most trusted brands in banking, consider taking advantage of the high-yield savings option at Capital One.

Consider these pros and cons before opening an account.

Pros of Capital One 360
  • High-yield savings option (4.25% APY)
  • No maintenance fees
  • No minimum opening deposit
  • No minimum monthly balance
Cons of Capital One 360
  • Some banks offer higher APYs
  • No debit card
  • No ATM card
  • No welcome offer/sign-up bonus

How to open a Capital One savings account

If you think Capital One is a good fit for your needs, take these steps to open a Performance Savings Account.

Other Capital One savings options

If this Capital One 360 savings account isn’t a good fit for your needs, here are a few other options to help you reach your financial goals:

Our top picks for savings accounts

FAQs: Capital One Savings Account

Is Capital One good for savings?

Yes. In addition to the Capital One 360 traditional savings account, the company offers a money market account and a savings account just for kids, giving you extra flexibility. The Performance Savings Account is a high-yield account, which means you have the opportunity to earn much more in interest than you would with a standard savings account.

Additionally, the standard Capital One 360 account has no monthly fees, no minimum balance requirement and no minimum deposit requirement. That means you can open an account with just a few dollars instead of waiting until you have a large amount of money available.

How often does Capital One pay interest?

Capital One compounds your interest monthly, which means the interest amount is added to your balance at the end of each month.

Is Capital One 360 a high-yield savings account?

Yes. Capital One 360 offers an APY that’s much higher than the national average. This is one of the?defining features?of a high-yield savings account, according to the FDIC.

Can you open just a Capital One savings account?

Yes. You can park your savings in a Capital One 360 account even if you don’t have a checking account, credit card or money market account with Capital One. This is another benefit of signing up for Capital One 360. Some banks won’t let you open a savings account unless you already have one of their other financial products. This forces you to open accounts that you may not need, making it more difficult to manage your finances.

The fact that you can open a Capital One 360 account without signing up for other services makes Capital One a good fit for consumers with a variety of financial circumstances. For example, if you just need a safe place to put your money, you can open a savings account without having to worry about meeting minimum deposit or balance requirements.

If you have a complex financial situation, you can focus on products and services that maximize your earnings and minimize your expenses. For example, you can take advantage of Capital One’s 4.25% APY without sacrificing better rates on credit cards or money market accounts.

How long does transferring money from a Capital One savings account take?

It typically takes one to three business days to complete a transfer from your Capital One account to an external bank account. Weekends and federal holidays don’t count as business days, so give yourself plenty of time for the money to reach your external bank account.

For example, if you make a transfer on the Saturday before Labor Day, the clock won’t start running until Tuesday. Therefore, you may not be able to access the funds until Wednesday, Thursday or Friday the following week.

About the Author

Leigh Morgan
Leigh Morgan Personal Finance

Leigh Morgan is a seasoned personal finance contributor with over 15 years of experience writing on a diverse range of professional legal and financial topics. She specializes in subjects like navigating the complexities of insurance, savings, zero-based budgeting and emergency fund development.

In the last five years, she’s authored over 300 articles for credit unions, digital banks, and financial professionals. Morgan is also the author of “77 Tips for Preventing Elder Financial Abuse,” a book focused on helping caregivers protect the elderly from financial scams.

In addition to her writing skills, she brings real-world financial acumen thanks to her previous experience managing rental properties as part of a $34 million real estate portfolio.

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