Capital One is offering an online savings account that offers interest rates between 0.6% and 1.60% depending on the account balance.

Account holders that have balances between $0 and $10,000 will earn 0.60% APY on their savings and customers with balances greater than $10,000 will earn 1.60% APY on their money.

Capital One’s online savings account requires a $1.00 minimum initial deposit and has no monthly service fee regardless of the account’s balance.  Per federal regulation, customers are limited to a maximum of 6 electronic withdrawals per month. Customers can transfer funds in and out of their accounts for free using the ACH electronic transfer system. Some of the bank’s customers have reported that their ACH transfers can be slower than other banks, resulting in the loss of a day or two’s interest.

After opening the account, you can link it to checking, savings or brokerage accounts. Capital One will verify your ownership of the linked account by using the trial deposit method. During the first 30 days of your account ownership, deposited funds are unavailable for 10 days. After that period, your new deposits will be unavailable for withdraw for five days.

Capital One does not do a hard credit pull, so your credit score will not be affected by opening an account.

You can also list up to six beneficiaries on the account, which may have some baring on the amount of FDIC insurance that you could qualify for under the account.

Capital One was founded in 1988 in Richmond Virginia. Capital One is an FDIC member and has a total of $166 billion in assets. Capital One is known for pioneering the mass marketing of credit cards in the 1990’s and is the fourth biggest customer of the United States Postal Service and has the eighth largest deposit portfolio in the United States. Capital One receives a 4 star rating by BankRate.com’s “Safe and Sound” rating system.