From Justin Pritchard,
Your Guide to Banking / Loans.
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A prominent online bank offering is the Capital One High Yield Savings account. This is like a lot of other online bank accounts. However, there are some unique features to the High Yield Savings account.

Updated: 4/3/2007

Capital One no longer offers the plain-vanilla High Yield Savings account. This account has been replaced by a High-Yield Money Market Account. The main difference is that you get free checks and a debit card for easy access to your cash. Keep in mind that some money market accounts (such as this one) are required to limit your withdrawals during each statement cycle -- so plan ahead.

Below you’ll find my unofficial summary of the Capital One High Yield Savings account. I won’t quote rates because they constantly change. You should visit the bank’s website and read all the fine print if you’re thinking of using their services.

The Offer

The High Yield Savings account is like a lot of other internet bank accounts. The main attraction is the APY (Annual Percentage Yield). You can typically earn more than brick-and-mortar banks. Furthermore, there are no fees for the service or minimum balance requirements. You can literally open a High Yield Savings account with $1.

With Capital One, you keep your existing checking account and link it to your High Yield Savings account. To move money back and forth, you login to your High Yield Savings account and request a transfer (transfers are free on the Capital One side, however you should check with your bank to make sure they won’t assess a charge).

What I Like About the High Yield Savings Account

Capital One is nice because they appear to allow unlimited account-linking. This allows you to network a variety of different accounts for lots of flexibility. You can simply pass money through the account and avoid using the mail.

The High Yield Savings account is supplemented by another nice offer from Capital One. You can get a Money Market account with checks and a debit card. With a $100 minimum balance, you’ll have easy access to your money. This is a nice alternative to free checking accounts.

Finally, you can open a High Yield Savings account over the phone (although you really need internet access to use the account). Using the phone may be more comfortable for people who are unsure of the setup process.

What You Might Not Like

One of the complaints I’ve heard is that the High Yield Savings account imposes fairly long hold times on deposits (10 days). Some people aren’t willing to wait that long, and there are other internet bank accounts with shorter hold times.

Share Your High Yield Savings Account Review

Have you used the High Yield Savings account? Please share your experiences with your fellow readers. With a wealth of information, we can all make better choices. Submit your review in the banking forums.

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