Capital One CD Rates: November 2024

Investing News
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November 13, 2024
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Capital One’s 360 CD is competitive for certain term lengths

Fact checked by Michael Rosenston

Capital One CD rates, with annual percentage yields (APYs) of up to 4.10%, are competitive with the best high-yield CDs. The bank also has no minimum deposit requirement and provides award-winning customer service.

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.

Compare Capital One CD Rates

Capital One CDs do have competitive interest rates, but you may be able to find higher rates by shopping around.

Capital One CDs: Key Features

We like that Capital One offers such high rates. But what’s 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 2023, for the fourth year in a row.

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

Pros and Cons of Capital One CDs

Pros

Competitive rates
No minimum deposit requirement
Reputable customer service

Cons

Possibly higher rates elsewhere
Early withdrawal fees

Pros Explained

Competitive rates: Capital One CDs offer fairly competitive interest rates compared to many other CDs on the market.
No minimum deposit requirement: Unlike many CDs, Capital One CDs do not have a minimum balance requirement. This is an unusual feature for CDs.
Reputable customer service: Capital One was ranked highest overall for customer service in 2023.

Cons Explained

Possibly higher rates elsewhere: While Capital One CDs do offer competitive rates, you may be able to find better rates elsewhere by shopping around.
Early withdrawal fees: Like many CDs, Capital One CDs have an early withdrawal penalty if you withdraw your funds before the end of the term.

About Capital One: Other Options

Capital One, one of the 10 largest banks in the U.S., is a full-service online bank with some branches in select U.S. states. It’s known for its extensive credit card offerings, but in addition to CDs, it also offers checking and savings accounts.

Capital One’s savings accounts offer lower rates than you might find at some of the best high-yield savings accounts, but its rates are still better than the national average. One benefit to the bank’s savings accounts is that they have no minimum balance requirements, which can be a useful option for new savers.

Alternatives to Capital One CDs

Other high-interest CDs: Although Capital One pays high rates on some CD terms, other term lengths are not as competitive. Check the best CD rates currently available before making a deposit.
High-yield savings account: If you want to protect your funds while also earning interest, you can also consider a high-yield savings account. Some high-yield accounts offer APYs of 4.00% or more, which is comparable to Capital One CD rates.
Checking account: A checking account is another option for storing your cash, especially if you don’t want to be subject to withdrawal limits. Some high-interest checking accounts can provide more returns on your cash than traditional checking accounts.
Money market account: Money market accounts are similar to savings accounts, though they may also come with check-writing abilities and a debit card. You can often earn a good rate on your savings, but you might have to deal with monthly fees or minimum balance requirements.
I bonds: I bonds from the U.S. government are an investment option for protecting your savings from inflation. I bonds may or may not offer a higher rate than the best CDs. When you invest, you have to commit to leaving your money in the I bond for at least a year.

Frequently Asked Questions (FAQs)

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.