bank rates

Could Capital One Have An ‘Essential Savings Account’ For Your Money?

If you live near a branch of Capital One Bank, you can earn an impressive 1.25% APY on your savings for a guaranteed six months.

While that’s comparable to what you can make from the top-paying nationally available savings account at UFB Direct, you need far more cash to score the top rate at UFB Direct, and there’s no guarantee how long that rate will remain in place.

At Capital One, you can earn 1.25% APY on an Essential Savings account with balances from $10,000 to $1 million.

Although McLean, Virginia-based Capital One requires a substantial minimum investment to qualify for that top rate, it’s more manageable than the $25,000 needed to make 1.25% APY from UFB Direct.

Capital One’s deal also beats the top rate you can earn on a nationally available 6-month CD. (That’s currently 0.82% APY from Doral Bank Direct, according to our CD Rates Leaderboard.)

Unfortunately, the Essential Savings Account is only available to customers who don’t already have a Capital One savings account and must be opened at one of the bank’s 900 branches in Virginia, New York, New Jersey, Texas, Louisiana, Maryland and the District of Columbia.

Although you can open an Essential Savings account with as little as $5, it’s not worth your effort as Capital One is only paying 0.10% APY on balances below $10,000.

Balances above $1 million earn 0.40% APY, and there are no monthly service fees regardless of how much is in the account.

After six months, Capital One can change the rate it pays on Essential Savings but hasn’t disclosed what that will be.

Consumers who don’t live near a Capital One branch can open a Capital One 360 online.

It’s paying 0.75% APY on your entire balance, which is still quite good. There’s no minimum deposit required to open an account, and the account has no service fees.

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