Interest-bearing checking accounts often require large balances to receive a high yield. Otherwise, the APY is usually unremarkable. Capital One’s Interest Online Checking account breaks that trend without tiered rates – but the account is limited to specific areas.
Capital One’s Interest Online Checking account offers 1.01% APY on account balances of $0.01 or more. There are no tiered rates that require customers to maintain a particular daily balance in order to get that rate.
Makes For a Nice Hybrid Checking/Savings Account
This account is very attractive for customers who don’t necessarily want to keep a large amount of funds in a checking account but still want their money to earn a decent APY. Some may utilize it as a liquid, hybrid savings account with around-the-clock accessibility in the case of an emergency.
Similar accounts from other online banks restrict the high-yield APY to a range of balances. The high-yield Electric Orange Checking account from ING Direct offers 1.20% APY on balances from $50,000 to $99,999.99, but the return for balances under $50,000 is 0.25% APY. Ally Bank’s Interest Checking account requires a daily balance of $15,000 or more to earn 1.05%. For balance less than that, the APY is 0.50%.
Limited to Areas Without a Capital One Branch
According a Capital One account representative, their Interest Online Checking account is available only to customers in areas where there isn’t a local Capital One branch. Customers located near a Capital One branch are only offered Interest Checking accounts with a rate of 0.05% APY.
For customers who are eligible for Capital One’ Interest Online Checking, they’re offered:
- 1.01% APY (effective as of 1/5/2011)
- No minimum balance
- No monthly account fee
- Free Online Bill Pay
- Free debit card
- Paper checks
- ATM fees are reimbursed up to $10 per statement period
If you would like to check if this account is offered in your area, visit the Capital One Bank website and enter your ZIP code. You will be able to find Interest Online Checking under their checking account products if you are eligible.
To compare other interest checking accounts, visit our checking rates page.