Capital One 360 Performance Savings High-Yield Savings Accounts Review

Whether you're just beginning to build savings or already have a healthy account balance, a no-fee high-yield savings account can help you reach your savings goals faster. Capital One’s 360 Performance Savings account may fit the bill. This Capital One 360 high-yield savings account review can help you determine if it’s the right option for stashing your savings.

Best high-yield savings account for beginners

A Capital One 360 savings account is ideal for the beginner saver because you earn the same high-yield annual percentage yield (APY) regardless of your account balance, and you don't have to worry about fees offsetting your savings.

But first, what is a high-yield savings account, and how does it differ from a traditional one? High-yield accounts allow you to earn a significantly higher APY on your investment than traditional savings accounts. However, some of these high APY accounts may have fees or strict account requirements that can be tough for new savers to meet. Capital One's absence of fees and balance requirements can help beginners and seasoned savers build savings faster.

Capital One 360 Performance Savings high-yield savings accounts pros and cons

Pros explained

Competitive APY

Capital One uses national percentile data from Informa Research Services to ensure its APY remains competitive with other high-yield offerings. Even if the variable APY on your Capital One account drops, you can feel confident it will remain competitive with other high-yield savings accounts.

No minimum opening or balance requirements

You don't have to carry a hefty account balance to earn Capital One's best APY. Whether you have $10, $100 or several thousand dollars in your account, Capital One applies the same competitive high-yield APY to your balance. You can also open a Capital One high-yield savings account with any amount, even if you start with just $1.

No fees

Capital One 360 savings accounts have no monthly maintenance fees, regardless of your account balance. There are a few exceptions, but unless you make frequent outgoing domestic wire transfers or purchase a cashier's check, you can save money entirely fee-free with Capital One.

Cons explained

No ATM account access

Capital One Performance Savings accounts don't come with an ATM card, which means there is no way to deposit cash directly into the account or withdraw it unless you visit a physical branch. You will need another deposit account at Capital One or another bank to make cash deposits that you can transfer into your savings account. Then, you must transfer funds from savings back to the other account when you need to withdraw.

No money market account option

Many banks have a high-yield money market account offering. Capital One limits its savings options to the Capital One 360 Performance Savings account, Capital One 360 CDs and Kids Savings account. (Take note that APYs for Capital One kids accounts are significantly lower than their 360 Performance Savings counterparts.)

No welcome bonus

To attract new savings account holders, some banks offer new customers a bonus for meeting specific deposit requirements. Capital One doesn't have new customer welcome bonuses on its savings offerings.

Capital One 360 high-yield savings account offerings

Capital One offers three types of savings accounts:

• 360 Performance Savings
• 360 CDs
• Kids Savings Account

None of these accounts have fees, minimum balance or opening minimum deposit requirements, and you can open all of them online. The Federal Deposit Insurance Corporation (FDIC) also insures each account type up to allowable limits. Here are more things to know about these savings options.

360 Performance Savings

With the Capital One 360 Performance Savings account, you earn a competitive, high-yield APY regardless of your account balance. Interest is compounded daily and credited to your account monthly. You can undoubtedly find higher APYs offered by some online banks and credit unions. Still, some financial institutions only apply that high APY to part of your account balance or have specific account requirements to earn it.

The Capital One 360 Performance Savings account doesn't come with an ATM card or check-writing privileges. However, you can easily transfer funds into and out of the account as necessary with the Capital One Mobile app or by logging in to the Capital One website. You can set up one-time or automatic transfers online or with the app. The mobile app also allows you to make mobile check deposits. You can make deposits and withdrawals at a physical Capital One branch too.

360 CDs

As with other savings accounts, the APY for Capital One’s 360 Performance Savings is variable and changes from time to time. If you'd prefer to put your money into a high-yield fixed-rate account, the APYs on Capital One 360 CDs are very competitive and generally higher than that of the 360 Performance Savings account. CD APYs are tiered and based on the account term. You can open a Capital One high-yield CD for any amount and choose a term as short as six months or as long as 60 months. Interest accrues daily and compounds monthly.

If you withdraw your money before the CD maturity date, you will pay an early withdrawal penalty, which is standard with most CDs. If the CD has a term of 12 months or less, the early withdrawal penalty for Capital One 360 CDs is three months of interest. The penalty jumps to six months of interest if the CD has a term longer than 12 months. Some banks charge as much as a 12-month early withdrawal penalty, which makes a Capital One CD an option worth considering. To avoid the possibility of an early withdrawal penalty entirely, you can opt instead to put your money in a savings account with no such penalties.

Kids Savings Account

The Capital One Kids Savings account isn't high-yield, but the APY is higher than what you'll find at some other banks. The higher APY and the account's lack of fees allow children to see results from their savings efforts. The account must have an adult joint account owner. If the child is under age 12, the adult must be the child's parent or guardian.

The Capital One account is an excellent first savings account for introducing kids to mobile banking. It allows the parent and child to have a unique account log-in for online and mobile app access. Children can monitor their savings progress and use the mobile app to deposit checks, but the adult account owner controls transfers.

Capital One 360 high-yield savings account pricing

You won't pay maintenance or withdrawal fees with a Capital One high-yield savings account. Outgoing domestic wire transfers have a $30 fee, and it costs $10 to purchase a cashier's check, but if you don't need these services, you can save for free with Capital One.

Capital One 360 high-yield savings account financial stability

According to Capital One Financial Corporation's 2022 Annual Report, 2022 was the company's second most profitable year to date. It delivered revenue of $34.3 billion, with its highest revenue growth rate of the previous 20 years. Additionally, 2022 was among the strongest in Capital One's history of new account originations.

By all accounts, Capital One's finances are stable, and 360 high-yield savings accounts are FDIC-insured up to the allowable limit if Capital One were to fail.

Capital One 360 high-yield savings account accessibility

Thanks to the Capital One Mobile app and online banking, Capital One is an easily accessible banking option even if there isn't a physical branch in your area. From availability to customer satisfaction, here’s what you can expect with a Capital One 360 high-yield savings account.

Availability

You don't need to visit a physical branch to open or manage a Capital One high-yield savings account. You can do all of your Capital One banking 24/7 with the Capital One Mobile app or online. However, unless you live near a physical branch, you must link another deposit account to your savings account, whether a Capital One 360 Checking account or an account at another bank. Since Capital One savings accounts don't come with ATM cards, you'll need this additional account to get cash and transfer money into and out of your Capital One 360 savings account. You can deposit checks into your Capital One 360 account at any time using the mobile app.

Contact information

Just as you can do your Capital One banking 24/7, you can reach a Capital One customer service anytime via the chat feature, whether through the app or by text. Assistance by phone is available between 8 a.m. and 11 p.m. EST by calling 1-800-655-2265.

User experience

Unless you live near one of Capital One's physical branches, you must rely on online banking and the Capital One Mobile app as a Capital One account holder. Even if you're new to online and mobile banking, you'll quickly realize that Capital One provides everything you need to open and manage accounts from home or on the go.

Capital One Mobile app users give it high praise. It has a 4.9 out of 5-star customer rating on the App Store and a 4.6-star customer rating on Google Play. It also ranks in the top 10 financial apps on both platforms. You can also feel confident about your account safety with the Capital One Mobile app. The app allows access to smartphone features such as fingerprint ID and facial recognition to ensure no one can access your account if your phone is lost or stolen.

Capital One 360 high-yield savings account customer satisfaction

Capital One's 100 million+ customers make it one of the largest retail banks in the U.S. Here’s how Capital One ranks among competing banks in the J.D. Power 2023 U.S. Retail Banking Satisfaction Study:

• Second in the U.S. South-Central region
• Second in the New York tri-state area
• Fourth in Texas
• Fourth in the U.S. mid-Atlantic region

Perhaps more importantly, it placed first in the 2023 U.S. Online Banking Satisfaction Study and second in the 2023 J.D. Power 2023 U.S. Banking Mobile App Satisfaction Study. Capital One also has an A+ rating by the Better Business Bureau (BBB) and has been BBB-accredited since 1995.

How we evaluated Capital One 360 high-yield savings account

We considered the following features in our evaluation of Capital One 360 high-yield savings accounts:

• APYs: We compared Capital One's APYs to those of other financial institutions to determine competitiveness.

• Fees: We reviewed account disclosures on the Capital One website to verify Capital One's fee-free offerings didn't have any hidden or other fees not clearly stated.

• Minimum balance requirements: We confirmed that no Capital One 360 savings account offerings require a minimum account balance.

• Accessibility: We considered how accessible Capital One 360 Bank is to customers based on its mobile app's features and customer reviews.

• Financial stability: We determined its financial stability by the Capital One Financial Corporation's 2022 Annual Report.

• Customer satisfaction: We evaluated customer satisfaction based on the J.D. Power 2023 U.S. Retail Banking Satisfaction Study and Capital One's BBB rating.

Summary of Money's Capital One 360 high-yield savings account review

Capital One didn't make our top picks for best high-yield savings accounts. However, it's a solid choice, especially if you're a beginning saver or simply new to high-yield savings accounts. Customers get competitive savings rates without worrying about minimum account requirements or fees. With this combination of account features, you'll see your savings grow. Finally, you get the benefit of the highly-rated Capital One Mobile app to bank any time of day. You can even set up automatic transfers with the app and put your savings on auto-pilot.