Investing News

Capital One CD Rates: May 2024

8 months ago
65 Views
4 Min Read

Capital One’s 360 CD can yield over 4.00% APY

Carlina Teteris / Getty Images
Carlina Teteris / Getty Images

Fact checked by Michael Rosenston

Capital One CD Rates

Capital One is probably one of the first banks you’ll come across if you’re searching for the best online CDs, and it truly doesn’t disappoint. Capital One CD rates are among the highest in the country and that’s only the start. The bank also has no minimum deposit requirement and provides award-winning customer service too.

CD Term APY
6 months 4.25%
9 months  4.25% 
11 months 4.25%
12 months  4.80% 
14 months 4.80%
18 months  4.45% 
24 months  4.00% 
30 months  4.00% 
36 months  4.00% 
48 months  3.95% 
60 months  3.90%

Although Capital One’s CD rates on long-term options are tempting, don’t open one unless you’re sure you won’t need the money before it matures. Otherwise, you may pay expensive early withdrawal fees. 

See the best CD rates today before choosing the CD that is best for you.

Capital One CDs: Key Features

APY Range 3.90%–4.80%
Minimum Deposit  None 
Term Range  6–60 months 
Early Withdrawal Penalty  3 months’ worth of interest for term lengths of 12 months or less; 6 months’ worth of interest for term lengths over 12 months

We like that Capital One offers such high rates. But what’s honestly refreshing to see is no minimum deposit requirement. 

Typically you’ll need $1,000 or more to open a CD, which isn’t obtainable for many people. It also prevents a good CD ladder strategy because you’ll need that high minimum deposit five times over if you’re going for a standard five-year CD ladder. But with no minimum deposit requirement, Capital One expands access so that anyone can get started with a single CD or several.

In addition, Capital One is known for its good customer support. The consumer research firm J.D. Power ranked Capital One as the top bank nationwide for overall customer satisfaction in 2022, for the third year in a row.

Capital One’s CDs are designed to be opened online, but you can open them at a local Capital One branch, too.

Compare CD Account Rates

How Do Capital One Bank’s CDs Work?

You can open a Capital One CD online or in a branch with any deposit amount you wish. You choose the term length, which dictates your interest rate and how long your money will be unavailable. You can withdraw the money early, but it’ll cost you a penalty fee. When the term length is up, you’ll have a 10-day grace period to withdraw the funds before they’re rolled over into another CD. 

Are Capital One CDs Safe and FDIC-Insured?

Yes, Capital One CDs are FDIC-insured up to $250,000 just the same as any other money you have in a deposit account with the bank. If you’re bumping up close to those limits it’s a good idea to seek out another bank to make sure all of your money is protected. 

Are Capital One and Capital One 360 the Same?

Yes, Capital One and Capital One 360 are the same. Capital One 360 refers to the bank’s online personal bank account division, as opposed to other divisions such as Capital One Spark, which focuses on small business credit cards. Even though Capital One’s 360 CD is primarily an online-only account, you can still open one in person if you live near a Capital One branch.

Is Capital One Good for CDs?

Yes, Capital One offers good CDs. If you’re concerned about earning the absolute maximum interest rate there are still better CD options. But it’s also an all-around good choice due to its positive reputation and no minimum deposit requirements, making it more accessible to all.

Your Guide to CDs

Read the original article on Investopedia.

Newsletter