Capital One’s Online “360 Savings” Account

February 2, 2013 2 Comments »

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Update 2013:

This account is now called the “360 Savings” account and it features an APY of 0.75%. It comes with zero fees, zero minimum deposits or balance requirements and can be opened online.

[Open a Capital One 360 Savings Account Here.]

Capital One, notorious for premium credit card offers, has been doing a bit of restructuring with their basic checking and savings accounts. After acquiring ING Direct’s deposit and checking business for $9 billion last year, they’ve rebranded these accounts with their new “360″ name and logo.

Old Capital One Savings Account Offer from Archive (2010):

Capital One Direct has an interesting promotional offer going with their “Interest Plus Online Savings Account.” Currently when you open one of these online savings accounts you will not only receive an interest rate of 1.60% APY (national average sits at 1.05% APY) but also a 10% bonus on your interest earned (paid quarterly).

For example, if you maintain a balance of $15,000, which is the minimum requirement for this bonus rate, you will receive $240 with the 1.60% interest rate, then an additional $24 as an added bonus ($240 x 10.0% Bonus = $24.00).

Capital One’s savings accounts are FDIC insured and available to consumers nationwide.

Details of InterestPlus Online Savings by Capital One:

  • It starts with a great rate: You’ll earn a 1.60% Annual Percentage Yield (APY)* on balances of $2,500 or more. That’s one of the highest rates you’ll find in a savings account.
  • Quarterly bonus: You’ll get a 10% bonus on your interest earned four times a year. Just keep an average balance of $15,000 in your savings account each month or use a Capital One credit card at least once a month to qualify.
  • Never charged for any fees: Rest easy knowing fees don’t apply to this account.

Our Take:

We like to see banks and credit unions (especially larger, national banks such as Capital One) offer outside the box type of savings accounts. Like the “Keep the Change” savings product from Bank of America, the “Get Paid Twice” is just as nifty with it’s creativity. With rates hovering around all time lows, standard savings accounts just aren’t cutting it as the rates associated with these aren’t even keeping up with inflation. The banks that are still succeeding in securing new savings account customers are the ones offering these types of products that have additional benefits and features besides a standard interest rate.

Interest Rate Outlook:

Expect prime rates to stay well under 1 percent until at least 2014. This is the general time line outlined by the FED as to when they will even consider raising rates again. Keeping your money in a liquid savings account may be your best bet at this time so that your funds are readily available should something unexpected arise.

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    As of Jan. 22, 2010, the rate is reduced to 1.55%. Clearly, this is a sign that the rate will be reduced even further.