Table Of Content
Capital One is a well-known credit card issuer that also offers banking services online and through its Capital One Cafés.
Among the bank’s offerings are certificates of deposit, which are a good way to set spare cash aside for a set period while letting it earn interest.
Capital One CDs
APY Range
Minimum Deposit
Terms
Our Rating
Capital One CDs
APY Range
Minimum Deposit
Terms
Our Rating
What Are The Capital One 360 CDs Rates?
Here’s a breakdown of Capital One 360’s CDs. The current APY range is 3.50% – 4.00%.
Overall, the rates are quite high. For example, if you're looking for a short-term CD, Capital One offers a very competitive rate compared to other banks when it comes to 6-month or 1-year CD rates (but there is no option for a 3-month CD)
This is also relevant for long-term CDs. The rates for 4-year CDs and also for 5-year CDs are among the highest in the nation.
CD Term | APY | Early Withdrawal Penalty |
|---|---|---|
6 Months | 3.80% | 3 months interest |
9 Months | 3.80% | 3 months interest |
12 Months | 4.00% | 3 months interest |
18 Months | 3.70%
| 6 months interest |
24 Months | 3.50% | 6 months interest |
30 Months | 3.50% | 6 months interest |
36 Months | 3.50% | 6 months interest |
48 Months | 3.50% | 6 months interest |
60 Months | 3.50% | 6 months interest |
Given the big jump in rates between CDS with terms shorter than a year and CDs with a term of a year or longer, 12-month CDs seem to be a sweet spot at Capital One 360, giving you strong returns with a relatively short lock-in period.
How Do Capital One 360 CDs Work?
Capital One 360 offers CDs with terms that range from 6 to 60 months. There are a few nice benefits to opening a Capital One CD account.
For one, there’s no minimum balance requirement, so you can open an account with just a few dollars if you want. You also have the flexibility to choose when the interest on the CD is paid out – monthly, annually, or at the end of the CD’s terms.
How Much Can You Earn If You Deposit $10,000 Today?
In case you deposit $10,00 to Capital One CD, here are you can calculate earnings (before tax) in case the interest is compounded daily:
* Make sure to adjust APY, terms and deposit
Are Capital One 360 CD Rates Competitive Compared to Other Banks?
If you’re thinking about opening a CD, it’s important to shop around and compare CD options from multiple banks. One of the primary reasons to open a CD is to earn a return, so you want to choose the bank with the highest rates.
As an online bank, Capital One 360 offers better rates than many brick-and-mortar institutions. It’s also competitive with other online banks. This is one of the strong benefits of Capital One Bank.
This table shows how the 1-year CD at Capital One compares to the 1-year CD elsewhere
Bank | APY | Minimum Deposit | Early Withdrawal Penalty |
|---|---|---|---|
Capital One | 4.00% | $0
| 3 months interest
|
Ally Bank | 3.90% | $0
| 60 days interest |
Synchrony Bank | 4.00% | $0 | 90 days interest |
Discover | 4.00%
| $2,500
| 6 months |
Bank of America | 0.03% | $1,000 | 180 days interest |
Capital One does not offer the highest available rate but is close enough to the competition to be quite competitive.
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Capital One 360 CD Rates vs. Capital One 360 Savings Rates
The value proposition behind CDs is that you receive a higher interest rate in exchange for limiting your access to your money. Savings accounts typically offer slightly lower rates but let you make withdrawals on demand rather than forcing you to wait for the account to mature.
Capital One’s savings account offers 3.70% interest, making it equal to the bank’s CDs with terms shorter than a year.
That leaves little reason for people who bank with Capital One to open a 6- or 9-month CD unless they fear falling rates.
The savings account also has no minimum balance requirement and no monthly fee. That means you don’t have to worry about fees eating away at your balance.
How Does Capital One 360’s Early Withdrawal Penalty Work?
Capital One 360 charges an early withdrawal penalty if you choose to take money out of your CD before its maturity date. If the CD matures, you must make withdrawals before ten days have passed.
The penalty is equal to the amount of interest you’d earn in a set number of days. Longer terms result in higher penalties.
For CDs with terms of 12 months or shorter, the penalty is 3 months interest. CDs with longer terms have a penalty of 6 months interest.
FAQs
Does Capital One 360 Offer No Penalty CD Rates?
No, Capital One 360 does not offer no-penalty CDs. You’ll have to pay an early withdrawal penalty if you choose to make a withdrawal from your CD before it matures.
Does Capital One 360 offer promotions on CDs?
No, Capital One does not offer any special promotions or interest rate boosters with its CDs. What you see is what you get.
Do Capital One 360 CDs come with a grace period?
Yes, Capital One offers a ten-day grace period on maturing CDs. You have ten days from the date that your CD matures to make changes to your account, such as withdrawing your money from the bank.
Which Capital One 360 CDs will earn you the most money?
The Capital One CD with the highest interest rate is its 60-month CD, which has an APY equal to 3.50%.
How is interest on Capital One 360 CDs calculated?
Capital One 360 compounds and calculates your interest on a monthly basis. That means that you’ll earn slightly more interest each month as your balance grows.
Top Savings Accounts From Our Partners
Quontic High Yield Savings
- 3.85% APY on savings
- Interest is compounded daily
- No Monthly Service Fees
CIT Savings Connect
- Up to 4.10% APY on savings
- No monthly service fees.
- Zelle, Samsung & Apple Pay
Advertiser Disclosure
The product offers that appear on this site are from companies from which this website receives compensation.
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Compare Capital One Certificate Of Deposit (CDs)
Capital One CDs and Citibank CDs
Citi has better CD rates than Capital One for specific terms, but Capital One rates are higher on other terms. Here's a full comparison: Capital One CDs and Citibank CDs
Capital One CDs vs. Chase CDs
Overall, Capital One CD rates are higher than Chase. Compare CD rates, minimum deposit, early withdrawal fees, and alternatives.
Capital One CDs vs. Discover CDs
Discover and Capital One offer high CD rates on all terms. However, for each term there is a different winner – here's a full comparison: Capital One CDs vs. Discover CDs
Capital One CDs vs. Marcus CDs
Marcus offers higher CD rates than Capital One on most terms but not all of them. Compare CD rates, min deposit, and early withdrawal fees.
How We Rate Certificates of Deposits: Our Methodology
The Smart Investor team has thoroughly examined certificate of deposit (CD) offerings from various banks, considering multiple factors to provide a comprehensive evaluation. Here's how we rated them across four key categories:
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CD Rates (50%): We meticulously analyzed the interest rates offered by each bank on their certificate of deposit (CD) products. Higher ratings were awarded to banks offering competitive rates that provide maximum returns for customers' investments. Factors such as the yield curve, current market conditions, and consistency of rates were considered to assess the attractiveness of each bank's CD rates.
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CD Features (30%): This category evaluated the features associated with each bank's certificate of deposit offerings. Factors considered include the variety of terms available, early withdrawal penalties, minimum deposit requirements, and any additional features or benefits. Higher ratings were given to banks offering a diverse range of CD terms, reasonable early withdrawal fees, and flexible options to meet customers' investment needs.
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Customer Experience (10%): A positive customer experience is paramount, even when investing in CDs. We assessed each bank's performance in this area, considering factors such as the ease of opening a CD account, the responsiveness of customer service, and overall user satisfaction. Higher ratings were assigned to banks with efficient account opening processes, helpful customer support, and a track record of satisfying customers.
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Bank Reputation (10%): The reputation of a bank is a critical consideration when investing in CDs. We evaluated each bank's reputation based on factors such as financial stability, regulatory compliance, and public perception. Higher ratings were given to banks with a solid reputation for reliability and trustworthiness, ensuring customers' investments are safe and secure.
By considering these categories and assigning appropriate weights to each, our review aims to provide valuable insights to help individuals make informed decisions when investing in certificate of deposits.
