Capital One Direct Banking High Yield Savings
Capital One Direct Banking
is a new high yield money market savings account offered by
Capital One Bank, best know for its credit card offerings and amusing television commercials.
Features
The new offering includes some attractive features. As a money market account, it is sort of a hybrid between a high yeild savings accounts and an interest bearing checking account. The interest rate paid is up there with the rates on high yield savings accounts at many Online banks, and there is no big minimum balance required to get it. In fact, the minimum balance is $1, an unusual feature for money market accounts.
Liquidity and Access
Further, unlike a savings account, you can write checks against your Capital One Direct Banking money market account. Checks and ATM access are included free, along with easy online access and cash transfers. Checks and ATM transactions are limited in number, but this still makes these accounts much more liquid than normal savings accounts.
Security
Capital One Direct Banking Money Market accounts are fully FDIC insured up to $100,000, and Capital One has a rock-solid financial foundation, so your money will be as secure there as it would be at most any other bank, online or otherwise. Further, accessing your account and records over an encrypted Internet connection doesn't run the danger of identity thieves stealing your account information by digging your bank statements out of the garbage.
The Bottom Line
Capital One Direct Banking looks to be an excellent deal for a broad range of people. If you don't write a lot of checks, you can use it in place of a checking account and take advantage of the high rates. Alternatively, you can use it like a savings account with a bit more flexibility.