You Can Earn 3.00% with a Capital One Savings Account. How to Maximize Higher Interest Rates

Photo to accompany a story about Capital One's latest savings interest rates Getty Images
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Capital One just raised its high yield savings account interest rate to 3.00%.

That’s a big leap from the 2.35% APY Capital One previously offered. The bank has made several interest rate increases over the past month to cross the 3.00% threshold ahead of next week’s anticipated Federal Reserve rate hike.

Capital One’s 360 Performance Savings ranks among our favorite high yield savings accounts today because of its flexibility and lack of fees and minimums, in addition to the competitive interest you’ll earn. 

Here’s more about how you can boost your savings with Capital One, and what to know before opening an account:

How to Maximize Capital One’s 3.00% APY

In today’s rising interest rate environment, there is plenty of competition among online banks to offer you the best interest rate on your savings. Capital One now has one of the highest rates available, at 3.00%. 

That interest rate can go a long way, especially compared to the national average savings rate of 0.21%. This average include both high-yield savings and traditional savings accounts which offer rates close to zero.

High yield savings accounts like the Capital One account are ideal for keeping your emergency fund — a few months worth of expenses that you may need access to in case of unexpected expense or financial uncertainty. Here’s an example of how much you could earn in a single year with $5,000 saved in an emergency fund at Capital One’s current rate, compared to the average:

Capital One Savings AccountAverage Savings Account
Annual Percentage Yield (APY)2.35%0.21%
Starting Balance$5,000$5,000
Interest Earned$150.00$10.05
Balance After One Year$5,150.00$5,010.05

Just by adding your savings to a high yield account, you can potentially increase your savings balance by hundreds of dollars in a single year — even before accounting for any contributions you add throughout the year.

Why We Like Capital One’s Online High Yield Savings Account

Capital One is unique among other offers on our list of top high yield savings accounts because Capital One is a hybrid online and in-person banking option.

There are no monthly fees and no minimum deposit or balance requirements to open a Capital One 360 Performance Savings and earn interest. You can transfer and withdraw money via online transfer, mobile check deposit, or in-person at a branch.

In addition to savings, you can open traditional CDs across a range of term options or an interest-earning checking account online with Capital One. You’ll have ATM access for checking, but cannot access your savings or CD accounts via ATM.

Even the best savings interest rate won’t offer you the same return for long-term savings goals like retirement as a diversified stock market portfolio, but it can add a significant boost to your savings balance. 

And while we think Capital One is a solid choice, there are plenty of high-yield savings accounts to consider for your emergency fund or other savings goal. 

When it comes to saving, the most important thing you can do is make regular contributions to build your balance up over time. The right savings account is a great tool for boosting your balance and simplifying the process with features like automatic transfers. But making saving a priority for your personal finances can help you grow your balance and reach your savings goals over time.