Capital One CD Rates
Capital One is one of the nation's top 10 largest banks based on deposits and serves customers through local branches in New York, New Jersey, Texas, Louisiana, Maryland, Virginia and the District of Columbia. Capital One is best known for their credit cards and checking and savings accounts but they also offer very competitive CD options through Capital One 360, an extension of the popular bank.
Capital One 360 is a 24/7 online mobile bank that helps you save and grow your money through high-yield checking and savings accounts, investment accounts like IRAs, CDs and more.
Let's take a closer look at their CD products.
Features and Benefits
Capital One 360 has three main aspects that detail what their CDs are all about.
No Risk: When you invest in the stock market, you assume a risk and could possible lose money. The best thing about investing in CDs is that there is potentially no risk involved. The terms are pretty clear and it can act as a very passive source of income since you don't have to do anything other than allow your money enough time to grow. All deposits with Capital One 360 are all FDIC insured as they should be.
All Reward: Along with their CDs being no risk, they also have the potential to merit a nice reward at the end of your term. The bank offers only high-yield interest rates so you can actually earn money from your investment. Interest rates range from .40% to 2.20% based on your term of choice. Interest rates are subject to change at any time, so it's best to refer back to the bank's website for the most up-to-date rates.
Your Terms: Like most other banks, Capital One 360 allows you to choose from a variety terms ranging from 6 months to 60 months. Of course the higher your term, the better your APY will be. As an added bonus, the bank lets customers decide when interest will get paid. You can either choose to receive it at the end of your term, monthly, or annually.
Capital One 360 lets you open multiple CD accounts and business CDs (up to 50) and there is no minimum deposit requirement. You can also opt to interest disbursements on a monthly or yearly basis on the anniversary of the account opening.
In addition, you can register your CD as a living trust if you wish. You must be at least 18 years old to do this and can make this change online through your own account.
Like a majority of other banks, Capital One 360 has penalty fees that you could be subjected to for withdrawing and funds from your CD before its' maturity date. For a CD with a term of 12 months or less, the penalty for withdrawing funds early is 3 months of interest and for a CD with a term longer than twelve months, the penalty is 6 months of interest.
These fees occur regardless of your circumstances at the time or when you choose to withdraw. For example, if you have an emergency and choose to withdraw funds from your CD one month before its' maturity date, you will still have to pay a penalty.
Setting Up and Managing Your Account
Capital One 360 has a user friendly website that makes setting your account up an easy and quick process. New and existing customers can start singing up by filling out some basic information and the terms on the CD they'd like to settle on. You'll need to create a username and password if you haven't already to manage your account online and you can transfer your deposit from your account as one of the last steps in the sign up process.
Capital One 360 will notify you about 35 days prior to the maturity date on your CD along with the current renewal rate. You don't have to renew your CD when it matures, but Capital One 360 helps make that process easier if you wish to do so by offering instructions to help you roll over your CD for another through your online account. You can also opt to close your CD at its' maturity date and transfer the money to your bank account. You'll need to link your bank account to Capital one 360 and the transfer process only takes about two business days.
Helpful Resources and Tools
Capital One 360 has live representatives available to talk to you 7 days a week. You can also download the Capital One 360 mobile banking app to access and manage your account from anywhere.
The bank also has a detailed FAQ section on their site covering all the main information related to their CDs. The FAQ section answers popular questions pertaining to how interest is calculated on a CD, penalty details for earth withdrawal, how many CD accounts you can open and how to set up a CD ladder. Skimming through the common questions in this section will help you become better knowledgeable about how to set up and manage your CD before you feel the need to contact customer to inquire about something.
Verdict - Good
Capital One 360 offers some of the industry's best interest rates for CDs and a wide variety of terms to choose from. With no minimum deposit required, customers can invest as much or as little all they want and still receive the best APY on their money. Most competitors offer higher interest rates based on how much you deposit, but since Capital One 360 does not, customers have more control over how much money they want to contribute.
The bank's automatic roll over option for CDs can be helpful to customers who would like to take a laid back approach to investing their money and maximize their earnings. While you can't add funds to your CD during its' term, Capital One 360 lets you open dozens of other accounts is you wish which can help you build a profitable CD ladder system over time. Of course will all CDs, the more you deposit, the more you can earn by the end of your term.