Capital One does offer high yield savings accounts, but only through one specific product
Capital One's high yield savings account is called the 360 Money Market Account. It is their only savings product that earns interest rates higher than a standard savings account. The account is available to customers who open it online or through a Capital One branch.
The 360 Money Market Account is different from a regular savings account because it typically offers a higher annual percentage yield (APY) on your balance. The exact rate changes based on Federal Reserve decisions and market conditions, so the rate you see today will not be the same six months from now. You can check the current rate on Capital One's website before you open the account.
This account comes with a debit card and check-writing privileges, which makes it more flexible than a basic savings account. You can withdraw money whenever you need it, though federal rules limit certain types of transfers to six per month.
Key Takeaways
- Capital One's 360 Money Market Account is their high yield savings product and earns interest at a rate that changes monthly based on market conditions.
- You can open the account online with no minimum deposit requirement, though some features may require a higher balance to activate.
- The account includes a debit card and check-writing ability, so you can access your money in multiple ways.
- Your deposits are insured by the FDIC up to $250,000, which protects your money if Capital One fails.
How the interest rate works and when it changes
Capital One sets the APY on the 360 Money Market Account based on what the Federal Reserve does with its benchmark interest rate. When the Fed raises rates, Capital One usually raises the rate on this account within days or weeks. When the Fed cuts rates, Capital One typically cuts the rate on this account as well.
The rate is not locked in for any period of time. Capital One can change it at any time without notice, though they typically announce changes on their website. This means the interest you earn in January may be different from what you earn in February.
You can compare the current rate to other banks' high yield savings accounts before you decide to open. Some online banks offer rates that are higher or lower than Capital One's rate on any given day, so shopping around takes a few minutes and can affect how much interest you earn over a year.
Minimum deposit and account opening requirements
Capital One does not require a minimum deposit to open the 360 Money Market Account. You can open it with $1 and begin earning interest immediately. However, some features of the account—such as check-writing or the debit card—may require you to maintain a certain balance, though Capital One does not currently enforce a minimum balance requirement to keep the account open.
To open the account, you will need to provide your Social Security number, date of birth, and address. Capital One will run a soft credit check, which does not affect your credit score. The entire process takes about 10 minutes online.
If you already have a Capital One checking account or credit card, opening the Money Market Account is faster because Capital One already has your information on file. You can link the accounts together so money moves between them easily.
Withdrawal limits and how to access your money
Federal law limits certain types of transfers from savings accounts to six per month. This rule applies to transfers you initiate to another bank account, transfers you request by phone or online, and automatic transfers you set up. Withdrawals at an ATM or in person at a Capital One branch do not count toward this limit.
The 360 Money Market Account comes with a debit card, so you can withdraw cash at any ATM that accepts Visa. Capital One does not charge a fee for using their own ATMs, but other banks' ATMs may charge you a fee. You can also write checks on the account, which means you can pay bills or people directly from the account without transferring money first.
If you exceed the six-transfer limit in a month, Capital One may charge a fee or convert the account to a checking account. The exact consequence depends on Capital One's current policy, so check their terms before you open the account if this is a concern.
FDIC protection and what happens if Capital One fails
Your money in the 360 Money Market Account is insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 per account holder per bank. This means if Capital One fails or goes out of business, the FDIC will return your money up to that limit.
The $250,000 limit applies to each account holder at each bank separately. If you have a Money Market Account and a checking account at Capital One, both accounts are combined under one $250,000 limit. If you have accounts at two different banks, each bank has its own $250,000 limit.
The FDIC has never failed to pay out insured deposits, and the insurance is backed by the full faith and credit of the U.S. government. Your money is safe even if Capital One's business struggles.
How the 360 Money Market Account compares to Capital One's other savings products
Capital One offers two main savings products: the 360 Money Market Account and the 360 Savings Account. The Money Market Account earns a higher interest rate and includes a debit card and check-writing ability. The 360 Savings Account earns a lower rate but is simpler—it has no debit card and no check-writing, so it is designed purely for saving money you do not plan to touch often.
If you want to earn the highest interest Capital One offers on savings, the Money Market Account is the choice. If you want a product that keeps you from spending the money because it is harder to access, the Savings Account may be better for your situation.
Capital One also offers checking accounts, which earn little to no interest but give you full access to your money through checks, debit cards, and transfers. Some people use a checking account for daily spending and a Money Market Account for money they want to save and earn interest on.
Fees and what to watch for
Capital One does not charge a monthly maintenance fee on the 360 Money Market Account. There is no fee to open the account, no fee to close it, and no fee to transfer money between your Capital One accounts.
You may be charged a fee if you exceed the six-transfer limit in a month, though Capital One's current policy is to convert the account to a checking account rather than charge a fee. You may also be charged a fee if you overdraft the account—that is, if you try to withdraw more money than you have. Check Capital One's current fee schedule on their website to see the exact amount.
If you use an ATM outside of Capital One's network, the other bank may charge you a fee. Capital One does not reimburse these fees, so using Capital One ATMs or branches is the cheapest way to access your cash.
Frequently Asked Questions
Can I move money from my Capital One credit card to the Money Market Account?
No. A credit card and a savings account are separate products. You cannot transfer a credit card balance to a savings account. You can use money from your savings account to pay your credit card bill, but that is a payment, not a transfer.
What happens to my interest if I withdraw money from the account?
You keep the interest you have already earned. Interest is calculated daily and added to your account monthly. If you withdraw money on the 15th of the month, you keep all the interest earned from the 1st through the 15th, and you stop earning interest on the amount you withdrew starting the 16th.
Is the Money Market Account the same as a money market fund?
No. A money market account is a bank savings product insured by the FDIC. A money market fund is an investment product sold by brokerages and is not FDIC insured. Capital One's 360 Money Market Account is a bank account, not an investment.
Can I set up automatic deposits to the Money Market Account?
Yes. You can set up direct deposit from your employer or automatic transfers from another bank account. These transfers do not count toward the six-transfer limit because they are incoming deposits, not outgoing withdrawals.
What if the interest rate drops to nearly zero?
The rate can drop, and it has in the past. If rates fall, you will earn less interest on your balance. You can move your money to another bank at any time without penalty, though you should compare rates at other banks before you decide to switch.