bank rates

Capital One Offers 1-Year Checking Rate Guarantee That Rivals Top Savings Rate

It pays 1.01% APY to savers who live near a branch.Capital One Bank’s free checking account pays a healthy rate and guarantees it for a year. But how much you can earn depends on where you live.

Those who live near a branch earn a rate that rivals the best nationally available savings accounts with the High Yield Free Checking account, provided they keep at least $5,000 on deposit at Capital One.

The bank’s Interest Online Checking account, for consumers who don’t live near a Capital One branch, pays a lower rate but has no balance requirements.

This ZIP code lookup will tell you which account is available to you.

Capital One, which is based in McLean, Va., and owned by the credit card company, has almost 1,000 branches — primarily in Louisiana, Maryland, New Jersey, New York, Texas, Virginia and Washington, D.C.

If you live near one of those branches, you can earn 1.01% APY.

That rate is nearly as good as the best nationally available savings rate.

And it pays as much as Incrediblebank pays on its free checking account, but not quite as much as the 1.25% offered at Bank of Internet.

The BofI account has more requirements and isn’t guaranteed.

At Capital One, you don’t need to keep a minimum amount in your checking account to earn the top rate on the High Yield Free Checking account. But the catch is you must have a combined $5,000 deposited in savings, checking, money markets or CDs.

It takes a $500 minimum deposit to open an account, which has no fees.

You earn 1.01% APY on balances up to $100,000. Balances above that amount earn 0.60% APY. The rate is guaranteed for one year.

Consumers in the rest of the country can apply for Capital One’s fee-free Interest Online Checking Account, which pays 0.75% APY on balances up to $100,000. The rate is also guaranteed for a year.

While the rate is lower than it is for those who live near a branch, there are no monthly account minimums to earn the top rate.

The account requires a $500 minimum deposit to open.

Neither account charges foreign exchange fees on debit card transactions made when you’re abroad.

And ATM use is free. Capital One will reimburse fees assessed by other ATM operators, up to $15 per statement period for account holders within the bank’s branch footprint, $25 for Interest Online Checking account holders.

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