Table Of Content
Two banks that offer competitive CD rates are Capital One and Chase.
In this article, we will explore and compare the CD rates offered by these banks, as well as delve into how CDs work and the different terms and conditions that come with them. We'll also examine the consequences of early withdrawal, including potential fees and penalties.
Here's a general CD comparison:
Capital One CDs | Chase Bank CDs | |
|---|---|---|
CD Range | 3.90% – 4.75% | 0.02% – 4.00% |
Minimum Deposit | $0 | $1000 |
Early Withdrawal penalty | 3-6 months of interest | 90 – 365 days of interest |
Term | 6 – 60 months | 1 to 120 months |
Compare CD Rates: Capital One vs. Chase Bank
The table compares the CD rates offered by Capital One Bank and Chase Bank for specific terms.
Based on the comparison, Capital One generally offers higher CD rates than Chase for almost all CD terms. Unless you need a 3-month CD offered by Chase and unavailable through Capital One, the latter wins on any other term.
CD Term | Capital One APY | Chase Bank APY |
|---|---|---|
3 Months | N/A | 3.50% |
6 Months | 3.90% | 0.05% |
9 Months | 3.90% | 0.05% |
12 Months | 4.75% | 3.25% |
18 Months | 4.75%
| 0.05% |
24 Months | 4.30% | 2.00% |
30 Months | 4.30% | 1.50% |
36 Months | 4.30% | 2.00% |
48 Months | 4.20% | 1.50% |
60 Months | 4.10% | 1.50% |
120 Months | N/A | 1.50% |
Which Is Better If You Need An Early Withdrawal?
An early withdrawal penalty is a fee imposed by financial institutions when an account holder withdraws funds from a certificate of deposit (CD) account before the maturity date.
If you're looking for a short term CD and you may need the money before the maturity date, you may want to do it with Capital One. The table below illustrates that Capital One is the better choice for CD early withdrawals, as the penalty required to be paid are lower than those of Chase.
CD Term | Capital One | Chase Bank |
|---|---|---|
3 Months | N/A | 90 days of interest
|
6 Months | 3 months of interest | 180 days of interest |
9 Months | 3 months of interest | 180 days of interest |
12 Months | 3 months of interest | 180 days of interest |
18 Months | 6 months of interest | 180 days of interest |
24 Months | 6 months of interest | 365 days of interest |
30 Months | 6 months of interest | 365 days of interest |
36 Months | 6 months interest | 365 days of interest |
48 Months | 6 of months interest | 365 days of interest |
60 Months | 6 months of interest | 365 days of interest |
120 Months | N/A | 365 days of interest |
CD Alternatives: What Do Capital One And Chase Offer?
Chase Premier Savings | Capital One 360 Savings | |
|---|---|---|
Savings Rate | 0.01% | 3.90% |
Minimum Deposit | $25 | $0 |
Fees | $25 per month
Can be waived if you carry $300 account balance at the start of the month, $25+ autosave or linking a Chase checking account
| $0 |
Promotion | None | None |
If an individual needs access to their funds in the near future or wants more flexibility in managing their savings, a savings account may be a better option. On the other hand, if someone is willing to commit to a specific term and wants to earn a higher interest rate, a CD may be a better choice.
Unfortunately, The Chase savings account doesn't offer a good alternative to its CDs due to the very low APY it offers. On the other hand, the The Capital One 360 Performance Savings account offers a highly competitive APY, with no minimum balance requirements or monthly maintenance fees. Although Capital One is an online bank, it has a small number of branches and Cafes for those who prefer in-person banking.
