Capital One 360 CDs offer a safe way to grow your savings with some competitive interest rates that range from 3.30% to 5.00% APY (annual percentage yield), depending on the CD term you choose. All of its CD terms—six months to five years—have a good feature for novel savers: no minimum balance requirements.
Overview of Capital One 360 CDs
While many certificates of deposit (CDs) have a minimum deposit amount, Capital One’s offerings don’t.This gives you the flexibility to start saving immediately, even if you don’t have a lot in the bank. Perhaps the positive feedback you receive from a decent yield will spur you on to save more later.
Additional flexibility comes from the variety of CD terms ranging from six to 60 months. However, there is a limit on how large your CD can be—$1,000,000.
How much can you earn with a Capital One 360 CD?
The CD market is in flux thanks to the Federal Reserve raising interest rates to quash inflation, meaning you can find much higher rates now than you could have during most of the post-Great Recession era.
Whatever the APY though, the more you deposit into a CD and the longer you leave your money in it, the more you’ll earn. A long-term CD is a great way to make more from your money.
To illustrate, here are your potential earnings from Capital One 360 CDs for various CD terms if you made a $10,000 deposit. All rates are as of March 1.
How Capital One 360 CDs compare
Compared to the national average data from the Federal Deposit Insurance Corporation (FDIC), the yields on Capital One 360 CDs are rich. However, a note before you celebrate — other top companies in the industry are often more competitive.
Synchrony Bank, which also has no required minimum deposit amount, has better short-term CD rates, and First Internet Bank, which has a $1,000 minimum, currently offers better APYs across the board.
As you compare CD terms and not just CD providers, you’ll notice that some rates peak at 12 months. That doesn’t mean you should discount longer-term CDs. Rates for multi-year CDs are still relatively elevated and you’ll earn more money on them over their longer terms.
For example, imagine you deposit $10,000 into two CDs. Both compound monthly. A one-year CD with a 4.75% APY would garner $485 while you’d earn almost double that ($938) with a two-year CD with an APY rate of 4.49%.
About Capital One Bank
Perhaps best known for its funny credit card ads, Capital One is a full-service, national bank with over $390 billion in total assets, making it the tenth largest bank in the nation. It has a robust variety of financial products, from checking and saving accounts to credit cards and auto loans. It was founded in 1994.
Frequently asked questions (FAQs)
CDs are extremely low risk when your total funds are within the federally insured limits, which are $250,000 per person, per insured financial institution, for each account ownership category. The FDIC) guarantees protection for bank deposits and the credit union deposits are covered by the National Credit Union Share Insurance Fund.
“Funds in excess of those limits are not guaranteed to be safe,” said Andrew Griffith, CPA and associate professor of accounting at Iona University.
Yet if you have a hunk of cash that you want to keep in one place, he recommends a credit union.
“NCUA-insured institutions tend to be safer institutions for a depositor who exceeds the federally insured deposit limits,” Griffith said.
CDs are primarily classified based on time. Short-term CDs mature in a year or less while long-term CDs have terms up to five years, or more.
“CD time requirements can be as short as 30 days or as long as several years,” Griffith said.
Common CD terms include three months, six months, 12 months, 18 months and then annual terms that can go up to ten years.
