Capital One has a couple of features that set it apart from other banks: physical branches and competitive rates.
While many brick-and-mortar banks offer low savings rates, Capital One is an exception. It remains a top competitor with high annual percentage yields, or APYs, that will give you a solid return on your money.
Plus, it offers a wide range of certificates of deposit, with varying term lengths. But before you open a CD account with Capital One, there are factors to keep in mind -- including early withdrawal penalties, lower rates on short-term CDs and no specialty CD options. Here’s everything to consider before choosing Capital One, as well as some other options to think about.
Capital One CDs: At a glance
|CD types offered||360 CDs (featuring one-, two- and five-year terms)|
|Term lengths||Six months to five years|
|Early withdrawal penalties||For CDs with terms of one year or less, the penalty for withdrawing early is three months’ worth of interest. For CD terms longer than 12 months, the penalty for withdrawing early is six months’ worth of interest.|
|Grace period||There’s a period of 10 days to decide whether to either withdraw your money and put it in another account, withdraw your money and open a different CD, or allow your CD to renew.|
Capital One 360 CD rates
Capital One’s 360 CDs have terms ranging from six months to five years -- all with no minimum deposit requirement. Interest accrues daily and is credited monthly. However, Capital One doesn’t offer any specialty CDs, so if you’re looking for an add-on or no-penalty CD, you’ll have to look elsewhere.
Here’s what else you’ll need to know.
Capital One CD payout
Capital One compounds interest on its CDs daily and credits it monthly. You may put the interest earnings in a high-yield savings account if it’s offering a higher rate. What’s more, the balance amount for each 360 CD account is insured by the Federal Deposit Insurance Corporation for up to $250,000 per depositor for each account ownership category.
Capital One’s early withdrawal penalties
Like most banks that offer CDs, Capital One charges early withdrawal penalties if you take money out of your CD before it matures or the term ends.
For CD terms of 12 months or less, the penalty for withdrawing early is three months’ worth of interest. CD terms longer than 12 months have a penalty of six months’ worth of interest. Keep in mind that you can’t make a partial withdrawal during your CD term, according to Capital One -- you’ll have to pull out your full balance.
What happens after your Capital One CD matures
Capital One offers three options to consider when the CD term ends. When your CD matures, you’ll have 10 days to decide if you’d like to:
- Withdraw your money and put it in another account.
- Withdraw your money and open a different CD term at current rates.
- Keep your money in the same account and let it renew automatically with Capital One’s current rate.
Example: How much can you earn with a Capital One 360 CD?
Capital One currently offers nine terms for its 360 CD account, ranging from six months to five years. Here’s how much you’ll earn with a high-yield CD with a $10,000 investment (earnings are compounded daily).
|CD term||APY||Interest earned|
Comparing Capital One’s CD rates
Despite the fact that most national, big banks with physical branches offer less competitive CD rates, Capital One’s CD rates are on par with online-only banks. However, when it comes to short-term CDs, such as six-month and one-year terms, Capital One lags behind online competitors. Here’s a closer look at how Capital One stacks up to CNET’s average tracked CD rates and the FDIC by the numbers.
How to open a Capital One CD
You can open your account online or at one of Capital One’s physical branches. When you’re ready, you’ll need your personal information -- including your name, address and Social Security number. You’ll also need your one-time deposit. Since it’s a traditional, high-yield CD, you won’t be able to add money to your account after your initial deposit.
Next, you’ll choose your CD term. Capital One shows all the available rates and terms to choose from. You’ll be asked to provide your personal contact information, employment status and income. When you’re ready to make your deposit, you can link a personal checking or savings account to transfer money for your deposit.
What other savings options does Capital One offer?
Capital One offers two savings accounts with no minimum balance to open or maintain.
- 360 Performance Savings: This high-yield savings account currently has a variable 4.3% APY. You can open and manage your account via the mobile app, website or a Capital One branch or cafe.
- Kids Savings Account: This account has a much lower APY, of 0.3%. Parents can manage the account, and schedule money to be deposited regularly when linking a Capital One or external bank account. When the child reaches 18, they’ll automatically be upgraded to the 360 Performance Savings account.
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