Capital One Bank is offering a high yield online savings account with a annual percentage yield (APY) of 3.40% on balances of $10,000 and up. Balances under $10,000 receive a APY of 2.40%. The minimum opening deposit on the online savings account is $1.00.

There are no monthly fees on the account and you can transfer funds for free. As with any savings account you are limited to six withdrawals per month.

Capital One has two subsidiary banks so the FDIC seems them as two separate institutions, any funds held in Capital One Bank (USA), N.A., are insured separately from funds in Capital One, N.A., and vice versa. As a result you can double up on the maximum FDIC coverage.

For example: Individual and joint accounts are insured separately. This means that if you have both an individual and joint account in each of Capital One Bank’s institutions, your total deposits can be insured up to $1.5 million (up to $250,000 in each of the individual accounts, and up to an additional $250,000 per depositor in each of the joint accounts). The basic deposit insurance limit is currently scheduled to return to $100,000 on Dec. 31, 2009.

You will need the following information to open the OSA.

• Social Security number
• Driver’s license or state-issued identification
• E-mail address
• Your bank or brokerage account information
• Home address
• Birth date

Capital One Bank Online Savings Account Application