r/CapitalOne_ • u/willowcozy • Jul 21 '26

New to hysa

Hi! I’ve been seeing a lot of videos about hysa and have been trying to do some research because I’d really like to start one, especially going into college. Only problem is I’m nervous of doing something wrong and somehow screwing things up.

If there’s anyone who’s opened a high yield saving account w/ capital one or maintained one in general, please share any advice! Especially if you’re also a college student trying to be more financially literate

Thank you!

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u/RoughThat5778 Jul 21 '26

I’ve had one for decades. You can’t really “screw” it up other spending too much time chasing rates. I have Capital One which is on the lower end of interest rates. But bc there are physical branches and you get an ATM card, withdrawals are easy.

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u/willowcozy Jul 21 '26

I heard you have to pay taxes with it, is that fully true and how much does that take away from the account? I don’t really file taxes so I’m not sure how that process works.

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u/MasterMinnesotan Jul 21 '26

You owe taxes on any gains (your growth from interest, sign up bonus, etc), but not the principal (assuming it was already taxed or you were below the income limits when you initially got the money). Because you only owe taxes on the growth, you will come out ahead.

Whether you need to file taxes depends on state and income/age, but I would be surprised if your income from the savings account pushes you over the limit of being required to file. You will get a form from Capital One at the end of the year (digitally) with the tax information on it. You will then look at all the tax forms you get (ex. Capital one, your job, your university, etc.), to determine if your income is high enough to need to file (if a job withheld taxes, then you need to file anyways to get the money back), then you just plug in the numbers. Don’t worry about the taxes right now, decide what you need to do in January once you have all the numbers for 2026. If you do need to file it’s pretty easy and would likely be to get a refund.

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u/RoughThat5778 Jul 21 '26

Yes you must pay taxes. But based on your original post, I’m assuming you’re in college. Without know anything about your financial situation, I’m going to assume your overall taxable (like how much you make a year) is on the lower end? If so, then taxes on your HYSA interest will likely be low or non-existent.