1.10% to 1.22% Capital One Money Market Account

Capital One Bank has a variety of internet banking options to help you manage your money, from 3 different types of money market accounts, 6 month to 5 year CDs, or a savings account with an interest rate bonus, all of which have decent rates if you put enough money into your account. Capital One is also FDIC-insured and has a 3 1/2 star rating (good) from Bauer Financial.

Capital One Savings Account Rates

Capital One offers a unique savings account called the InterestPlus Online Savings Account. InterestPlus earns 1.10% APY on balances of $1,000.00 or more. The minimum initial deposit for the InterestPlus is $1 but you will only earn 0.10% APY on balances less than $1,000.

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 statements – most of these limitations are due to federal regulations. However, InterestPlus offers an additional 10% of the interest earned in the previous quarter if you maintain at least $10,000 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. For example, if you maintained $10,000 in your account for the first quarter (Jan,Feb,Mar) then you would have accrued $27.50 interest. InterestPlus would then give you a 10% bonus of $2.75 credited to your account 4-8 weeks after the end of the quarter (March 31). By earning the bonus every quarter, the total amount of interest you are earning in a year would be exactly 1.22% APY instead of the 1.10% APY you’d earn without the bonus.

Capital One CD Rates

There are multiple CD options from 6 months to 10 years. As of this post update their CD rates aren’t very competitive (Ally offers 2.40% APY for a 5 year CD while Capital One only pays 1.75% for the same term). Here are Capital One’s CD rates as of September 7 2010:

The minimum investment for these CDs is $5,000.00. There are no fees to open or maintain your account and you can access account information online or by phone.

Capital One Money Market Accounts

Capital One offers three different types of money market accounts. The first one is a High Yield Money Market Account with a rate of 0.75% 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 0.75% 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.

The third money market account type is for businesses and pays 0.70% APY, comes with free checks and no fees or minimum balances.

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 – which means Capital One is in average financial condition.

Click to compare Capital One savings accounts their site.

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