Capital One 360 Performance Savings Account: Earn Up to 1K Bonus Funds w/ 3.5% APY Expired

Who readily has $100k to drop in a savings account? This is just another handout to the rich.

You only have to keep it end for 90 days. You will earn $875 just in interest during that time. With the extra $1,000 that would be $1,875 for 90 days which is equivalent to 7.5% return for the 90 days.

I do because I've been frugal and saving for many decades. The problem is that while it may appear to be a handout, the bank is making money off of the money and in my case the government takes 37% of it back at tax time. No thanks. I prefer to change that dynamic and buy municipal bonds and/or bond funds. No minimums and I don't pay taxes on interest I receive that is used to fund public infrastructure. Yes, the money is arguably more locked-up but worth it for some of the interest that municipalities are having to pay to fund their projects...

Got a Discover mailing with 3.5% APY and $150 (15k deposit) or $200 (25k deposit) bonus. It looks my banks and brokerage have interest rate <0.1 %. Googled some saving information and soon the Capital one app pop the deal posted here.

Jesus Christ 🤦 1,875 is 1.875% of 100,000. That is not a horrible return for 3 months for something like this but that's the theoretical worth at 3 months not the actual value, I'll explain.

The original 100,000 investment earns 3,500 per year, the bonus 1,000 earns 35 per year.

3,500+35+1,000 bonus = 4,535

4,535 is 4.535% of 100,000 or 377.91666 per month if kept for the year, which is pretty good.

APY is annual percentage yield. It has to be left in for a year to hit these figures. It has the compounded monthly interest baked into the APY, APR per month is not APY.

APY is the total gain with all compounded interest taken into account for a year. After 90 days you will not have 1,875. You will have 1,000 + whatever 3 months of the actual APR per month of your account balance is, without the majority of the compound interest for the year baked in and that will be a little bit less.

So to be clear, you have to let it compound for a year to hit the APY figure. APY includes the gains of compounding interest for a year.

APR for 3.5 APY is only 0.28709% monthly or 3.44 APR.

So you get a gain of 0.28709% of your account balance every month and that compounded monthly for a year works out to an APY of 3.5% and APR of 3.44508%

So it is very simple, you get 1,000 plus 0.28709% of your account balance every month.

Whether you get the bonus 1,000 immediately or after 3 months would affect the theoretical APY value a little bit, if you keep it all invested for the year.

So ya, you would only get 287.09 as interest for the first month from 100,000 or 289.9609 from 101,000 to hit an APY of 3.5%

Does that make sense?

Im a Capital 360 customer already, so I wasn't eligible for the rewards and also keep under $10k in savings—

however did make me check my interest rate... I'd understood the .3% to be monthly, but it's not. They'd discontinued a savings program two-three years ago, and switched me. I was wrong that my interest rate was monthly, and was only getting $.3% annually! And had been getting that for 2-3 years which is pathetic. They'd sent me notes about the discontiuation and it'd be rolled into a new savings account—and I didnt fully read it seeing it was just rolling over into something like most do—and was just a name change, but it was a rate change.

So yeah, I've been earning about $20 a year, when it should have been around $250. So thanks for the post. I switched immediately to this new Performance Savings. Retroactively I've lost about $500 in interest because of the switch.

100k/1k is 4% APY. No thanks.