I’m looking at a savings account through capital one. Offers 3.0% APY. I’ve looked at savings and money market accounts through local and regional banks in my area, and none of them come close to that rate. It seems awfully high. The legal-ese for capital one basically says they can change the rate at any time. Is this “too good to be true?”

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iheartpizzaberrymuch t1_iugi2e1 wrote on October 31, 2022 at 3:29 AM

#369,425

Not really. Most banks will rise to 3 percent soon.

You can lock in a rate with a cd, but most will change over time. They go up and down.

TheGioSerg OP t1_iugixme wrote on October 31, 2022 at 3:37 AM

#369,665

Replying to iheartpizzaberrymuch (#369,425)

Do you have any opinions on whether to choose a national vs local or regional bank?

DB71Cooper t1_iugj19k wrote on October 31, 2022 at 3:38 AM

#369,689

I heard Capital One 360 is moving to 3% on Monday. There are a few that all trend similarly. Cap One, Sofi and Discover bank come to mind. Check out Nerd Wallet for reviews and latest interest rates and incentives.

enterdoki t1_iugrdsd wrote on October 31, 2022 at 5:10 AM

#371,985

Replying to DB71Cooper (#369,689)

Did not expect that from Capital One to be honest.

1151am t1_iuho1f1 wrote on October 31, 2022 at 12:33 PM

#380,015

Replying to enterdoki (#371,985)

Why not if you don't mind me asking?

Not trying to defend them or anything since I am their customer, but they've always been up there along with Ally, Sofi, Discover, Charles Schwab, and a few others when it comes to rates. If they're not the first to raise the rates on savings accounts, they're usually pretty quick to do it after the others start raising their rates.

1151am t1_iuho93x wrote on October 31, 2022 at 12:35 PM

#380,064

The reason your local bank isn't paying you 3% while Cap One (and Ally, Sofi, Charles Schwab, Discover, and others) increases their rates frequently is because your local bank can do whatever the fuck it wants and no one cares. If your local bank keeps paying 0.25 and no one closes their accounts, why should they now start paying 3%? They're making money paying you 0.25% why lose money (or make less money) by paying you 3%?

iheartpizzaberrymuch t1_iuhxgx2 wrote on October 31, 2022 at 1:51 PM

#382,940

Replying to TheGioSerg (#369,665)

Depends on if you travel a lot ... sometimes it's better to have a national bank and a local bank. You can open numerous bank accounts.

petrock85 t1_iui7984 wrote on October 31, 2022 at 3:01 PM

#385,818

The higher interest rates are real. Even if the local bank only pays 0.60%, their legalese gives them the right to drop it even lower. The question you should ask is how other banks are able to get away with paying such low interest rates.

By the way, 3% is not the best you can get for a deposit account. You can get 3.5% on savings in large amounts and even higher for small amounts -- see https://www.doctorofcredit.com/high-interest-savings-to-get/ for an extensive list.

polar_nopposite t1_iuibif9 wrote on October 31, 2022 at 3:31 PM

#387,072

I've had CapitalOne savings account for years and the rate has always been at least decent vs what's out there.