1. What is the Capital One Savings Calculator?

This calculator estimates how your money will grow in a Capital One 360 Performance Savings account using daily compounding interest. It helps you project savings growth based on the current APY (Annual Percentage Yield).

2. How Does the Calculator Work?

The calculator uses the compound interest formula:

Where:

• \( A \) — Final amount ($)
• \( P \) — Principal amount ($)
• \( r \) — Annual interest rate (decimal, e.g., 0.038 for 3.8%)
• \( t \) — Time in years

Explanation: The formula calculates daily compounding (365 times per year) which maximizes your earnings compared to simple interest.

3. Importance of Compound Interest

Details: Compound interest means you earn interest on both your principal and accumulated interest, leading to exponential growth over time. High-yield savings accounts like Capital One's offer significantly better returns than traditional savings accounts.

4. Using the Calculator

Tips: Enter your initial deposit, the current APY (default is 3.80%), and the number of years you plan to save. The calculator will show your projected balance and total interest earned.

5. Frequently Asked Questions (FAQ)

Q1: What is the current Capital One APY?
A: As of 2023, the 360 Performance Savings account offers 3.80% APY, but rates may change. Always check current rates before calculations.

Q2: How often is interest compounded?
A: Capital One compounds interest daily and credits it monthly, which maximizes your earnings.

Q3: Are there any fees?
A: Capital One 360 Performance Savings has no monthly fees or minimum balance requirements.

Q4: How does this compare to CDs?
A: Savings accounts offer liquidity while CDs typically offer slightly higher rates but lock your money for a term.

Q5: Is my money safe in a Capital One account?
A: Yes, deposits are FDIC insured up to $250,000 per depositor, per account type.