Capital One recently launched a new type of Savings account, Performance Savings, while discontinuing the old 360 Savings and Money Market accounts. If you have either of those legacy savings accounts, switch to Performance Savings. This new account type is better than both, but Capital One by default lets you keep the old accounts and does not automatically convert for you.
Why is it better?
- Performance Savings offers 1.9% APY over the 1.0% APY of 360 Savings (matches the 1.9% of Money Market)
- Performance Savings has no minimum, unlike the $10k minimum of the Money Market
- The article linked above provides more details
I don’t work for Capital One and don’t care if you switch from elsewhere. There are probably better interest rates elsewhere. However, I just personally found this out while trying to open a new savings account and was a little annoyed I was not getting the max interest available on my older savings accounts. I want to make sure all of you are earning higher interest as well.
I keep a lot of savings accounts, one for each of my near-term financial goals categories (e.g. emergency fund, home & auto, vacations, charities, gifts, etc.), so it took me about an hour to convert them all over. Switching just one account should take 5-10 min online. Transfer your funds as the last step in the process, and you’re good to go. Deleting the old account is a separate matter. I think you have to call, but let me know if there’s a simpler way. I haven’t tried that yet.