Table Of Content
Certificates of deposit (CDs) can be a great way to save money and earn interest over a fixed period of time. But with so many banks and financial institutions offering CDs, it can be difficult to know which one to choose.
In this article, we'll take a closer look at two popular CD providers: Marcus by Goldman Sachs and Capital One. We'll compare their CD rates, minimum deposit requirements, and early withdrawal fees to help you make an informed decision about where to invest your money.
Capital One CDs | Marcus CDs | |
|---|---|---|
CD Range | 3.50% – 4.00% | 3.75% – 4.25% |
Minimum Deposit | $0 | $500 |
Early Withdrawal penalty | 3 – 6 months of interest | 90 – 270 days of of interest |
Terms | 6 – 60 months | 6 – 72 months |
Capital One vs. Marcus: CD Rates Comparison
When comparing Marcus and Capital One CD rates, it's easy to see that there is no clear winner here.
There are specific terms Marcus has an advantage and some terms where Capital one wins. However, overall, the rates are very similar.
CD Term | Capital One APY | Marcus APY |
|---|---|---|
6 Months | 3.80% | 4.10% |
9 Months | 3.80% | 4.30% |
12 Months | 4.00% | 4.25% |
18 Months | 3.70% | 4.00% |
24 Months | 3.50% | 3.80% |
36 Months | 3.50% | 3.75% |
48 Months | 3.50% | 3.75% |
60 Months | 3.50% | 3.75% |
72 Months | N/A | 3.75% |
Only Marcus Offer No Penalty CD
If you may need the money before the maturity date, then Marcus is the right place for your needs.
Marcus offers a no-penalty CD, including impressive rates, which makes it ideal if you need to withdraw your money earlier than expected.
Capital One | Marcus | |
|---|---|---|
13 Months | N/A | 4.00% |
Top Offers From Our Partners
Both Offer Similar Early Withdrawal Penalty
An early withdrawal penalty is a charge levied by financial institutions when an account holder takes out money from a certificate of deposit (CD) account before it matures.
Neither of them has a clear advantage over the other in terms of penalties, as indicated by the table below.
CD Term | Capital One | Marcus |
|---|---|---|
6 Months | 3 months of interest | 90 days of interest |
9 Months | 3 months of interest | 90 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 | 180 days of interest |
36 Months | 6 months of interest | 180 days of interest |
48 Months | 6 months of interest | 180 days of interest |
60 Months | 6 months of interest | 180 days of interest |
72 Months | N/A | 270 days of interest |
Do Capital One And Marcus Offer Alternatives to CDs?
A savings account can be an alternative to a CD for those who prioritize liquidity and flexibility over the higher interest rates offered by CDs. Savings accounts typically have lower interest rates than CDs, but they also offer easier access to funds without penalties for early withdrawal.
Marcus Online Savings | Capital One 360 Savings | |
|---|---|---|
Savings Rate | 3.90% | 3.80% |
Minimum Deposit | $0 | $0 |
Fees | $0 | $0 |
Promotion | None | None |
The Capital One 360 Performance Savings account offers a highly competitive APY, with no minimum balance requirements or monthly maintenance fees. It also provides some branch access and free credit monitoring services. The account has FDIC insurance, which ensures the safety of funds. The account offers one of the best savings rates and doesn't have a minimum balance requirement. The account also provides free credit monitoring services to help customers improve their credit health.
But, Marcus savings account is also a great alternative to its CD products. The Marcus online savings account offers a high yield rate of 3.90% APY with no minimum deposit requirements, no account maintenance or transaction fees, and the ability to transfer up to $100,000 per day to other banks. The account also features a savings calculator to help account holders visualize potential savings and financial goals.
Compare Capital One Certificate Of Deposit (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
Overall, Capital One CD rates are higher than Chase. Compare CD rates, minimum deposit, early withdrawal fees, and alternatives.
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
Compare Marcus Certificate Of Deposit (CDs)
Discover the best CD rates Marcus and Discover offers with our comprehensive comparison, including early withdrawal penalty.
Synchrony and Marcus offer high CD rates, including no penalty CD. How do they compare when it comes to terms and early withdrawal penalty?
Related Posts
The Smart Investor CDs Comparison Methodology
In our comprehensive certificate of deposit (CD) comparison, The Smart Investor team meticulously evaluated various CDs across four key categories to assist you in selecting the most suitable option for your savings goals.
- CD Rates: We thoroughly examined the interest rates offered by each CD, considering their competitiveness in the market. Higher rates typically translate to greater returns on your investment over the CD's term. Additionally, we scrutinized any special promotional rates or conditions that might affect the overall value of the CD.
- CD Features: This category focuses on the unique features and terms associated with each CD. We assessed factors such as minimum deposit requirements, early withdrawal penalties, and the availability of flexible terms. Additionally, we considered any additional perks like interest compounding frequency or options for automatic renewal.
- Customer Experience: A positive customer experience is crucial in banking, and we evaluated each institution's performance in this regard. We looked into aspects such as the ease of opening a CD, the quality of customer service, and the availability of support channels. Reviews from reputable sources such as Trustpilot and JD Power rankings were also considered to gauge overall user satisfaction.
- Bank Reputation: The reputation of the bank is a significant factor in the decision-making process. We examined the bank's financial stability, regulatory compliance, and public perception to assess its overall trustworthiness and reliability as a CD provider.
