CapitolOne Direct Banking offers consumers to take advantage of their online savings account which gives 1.60% APY for deposits of over $10,000. Minimum funding to open the account is just $1. The entry level tier for this savings account earns 0.60% APY.

The current interest rates for this high interest savings account are effective as of September 2 and may change any time. It will be best to check out their website or contact the bank for the latest figures. Earnings are computed on a daily basis and credited to your account every month.

Interested individuals may open their high yield savings account online. The deposits will be held under Capital One Bank, N.A. since it has a different FDIC registration from Capital One Bank. A copy of your driver’s license maybe requested to verify your identity during application. According to the bank, they do not do a hard credit pull.

Once you receive the acceptance form, the CSR told us that you can add a maximum of 6 beneficiaries for every account.

CapitalOne does not impose any monthly balance requirements nor do they ask for service fees. Withdrawals are limited to six per month as required by law. The account also does not provide any ATM or give check writing privileges.

You can link your other accounts like savings, checking, or brokerage. The bank will make a trial deposit when you try to link an account just to verify.

We have received some reports before that the ACH facility of CapitalOne is a bit slow. The funds are taken out from the source account on the same day but it will reflect on your savings account after 3 business days.

CapitalOne has good ratings from Bankrate.com which issued 4 stars while BauerFinancial gave3.5 stars. These evaluation of soundness and safety was based on their March 2009 data.

The bank has about $118 billion in assets and approximately $83 billion worth of deposits. CapitalOne is insured with the FDIC and has certificate number 4297.