Capital One comes in 10th on the list of the 10 largest US banks based on assets, according to the Federal Reserve’s 2022 ranking. It offers a set of deposit accounts that provide solid services for retail banking customers, including certificates of deposit and youth accounts.
Capital One offers innovative banking experiences, marrying digital banking services with physical locations in select cities and airports across the country. The Capital One Cafés, for example, offer a unique experience compared to traditional bank branches by providing both clients and the general public with free Wi-Fi, comfortable lounge seating and Peet’s coffee and treats.
As interest rates continue to rise, Capital One’s competitive APYs on savings accounts and high-yield CDs can give you a better return on your savings than traditional banks. We also like that you can choose between short- and long-term CD options, and setting up an account is simple.
Capital One CDs: At a glance
| CD types offered | 360 CDs (featuring one-, two- and five-year terms) |
|---|---|
| Mimimum deposit | $0 |
| Term lengths | Six months to five years |
| Compounding schedule | Monthly |
| 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 | 10-day period to decide whether or not 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 offers its 360 CD accounts as a way for its customers to earn higher yields compared with competing banks. Even though you’ll have the flexibility to choose from a range of CD terms and payout options, there’s more to know about Capital One’s CDs before opening one.
Capital One CD terms and payout
The 360 CD terms are flexible, with no minimum balance required to open an account. Capital One’s 360 CD terms range from six months to five years, the bank features three options: A one-year CD with an annual percentage yield, or APY, of 4.15%; a two-year CD at 4.30% APY; and a five-year CD at 4.10% APY.
Capital One also lets savers decide how they want the interest from their CD to be paid out -- monthly, annually or at the end of the term. That decision could yield more savings if the interest is reinvested into a savings account. What’s more, the balance amount for each 360 CD account is insured by the Federal Deposit Insurance Corporation, or FDIC, for up to $250,000 per account.
What happens after your Capital One matures
Capital One also offers three options for savers when their CD account matures. Upon maturity, you have a 10-day window to decide on either withdrawing your money and putting it in another account, withdrawing your money and opening a different CD, or keeping your money in the same account and letting it renew automatically. Keep in mind that if you let Capital One automatically renew your CD for the same term, the rate may be different.
Early withdrawal penalties
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 take a partial withdrawal during your CD term, Capital One says.
Example: How much can you earn with a Capital One 360 CD?
Capital One currently offers nine terms of 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 |
|---|---|---|
| 6 months | 3.30% | $163.66 |
| 9 months | 3.30% | $246.49 |
| 12 months | 4.15% | $415.00 |
| 18 months | 4.25% | $644.23 |
| 24 months | 4.30% | $878.49 |
| 30 months | 4.30% | $1,109.92 |
| 36 months | 4.30% | $1,346.27 |
| 48 months | 4.20% | $1,788.83 |
| 60 months | 4.10% | $2,225.13 |
How do Capital One CD rates compare?
Capital One CD rates are much higher than the national average of rates as posted by the FDIC. The national average, for example, for a 12-month CD is 1.49% while a two-year CD is 1.41% and a five-year CD is 1.35%.
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. Keep in mind that 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 of 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: Capital One offers this savings account with a 3.40% APY.
- Kids Savings Account: The account has a much lower APY of 0.3%. Parents have control over the account and can link it to their existing Capital One account.
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