Capital One has a variety of internet banking options to help you manage your money, from 2 different types of savings accounts, CDs, or money market accounts, all of which have decent rates if you put enough money into your account. Capital One is also FDIC-insured.
The two types of savings accounts Capital One offers are InterestPlus Online Savings account and an Online Savings account. InterestPlus has 1.60% APY on $2,500.00 or more. The minimum initial deposit for the InterestPlus is $2,500 so you can’t have less than that to open the account. There are no ATM cards or checks with this savings account and online transfers are limited to six per month and they only offer online statement. However, InterestPlus offers an additional 10% of the interest earned in the previous quarter at 1.60% if you have at least $15,000 in your savings account each month or if you use your Capital One credit card at least once a month for that quarter. Capital One will give you that additional 10% in the following quarter.
Capital One’s regular online savings account offers 1.50% APY on $10,000 or more or .50% APY on balances of $9,999.99 and lower. There are no fees associated with the savings account and the minimum initial deposit is only $1.00.
There are multiple CD options from 6 months to 10 years. The best rates start with the 2 year term at 2.00% APY and a 4 year term at 3.00% APY. The minimum investment for these CDs is $5,000.00. For a shorter term CD, like 6 months, interest is at .25% APY or .50% APY for a 12 months. There are no fees to open or maintain your account and you can access account information online or by phone. Capital One offers two different types of money market accounts. The first one is a High Yield Money Market Account with a rate of 1.20% APY. The minimum initial deposit is $1.00 and there is no minimum balance, no fees, free online transfers, checks, and ATM card.
The second type is a Rewards Money Market Account at 1.10% APY. This account earns No Hassle Miles on your monthly balance. The initial deposit to open an account is only $1.00, and if you deposit $500.00 within the first month, you earn 2,500 bonus miles and 1 mile for every $20.00 of your average balance per month. You can access and redeem rewards via telephone or online. Rewards can be redeemed for air travel, cash, merchandise, or charitable contributions.
Opening an account can be done online with your personal information, including social and driver’s license, and your existing account information to transfer the initial amount of deposit. Capital One will send you a packet with all the information within 10 business days via mail.
Capital One has great customer service and you can telephone their banking experts 6 days a week or chat online or email for customer service. Their website was easily navigated and informative, with versatile savings options. As far as financial strength goes, Bauer Financial rated Capital One with 3 ½ stars and Bankrate.com gave Capital One 3 stars.