Major Rate Increase at Another Online Bank

Capital One increased the APY on its High Yield Savings Account from 3.45% to 3.75%. This matches the increase that GMAC Bank did last week. I'm still waiting for ING Direct to increase its savings account rate...

Like EmigrantDirect, ING Direct, and HSBC, Capital One's High Yield Savings does not have any minimum balance requirements or fees. It also links the same to an external checking account.

One benefit of Capital One that I read from this Fatwallet thread is the flexible linking feature. There doesn't seem to be any restrictions on the number or type of accounts that you can link to.

Capital One also has a Money Market Account with the same 3.75% APY, but there's a $100 minimum deposit requirement. Unlike the savings account, you get the extra benefit of checks and ATM access.

Now this standard Capital One Money Market Account has essentially the same rate as the Capital One/Costco Money Market Account. Previously, this Costco account (available only to Costco members) had the advantage of 3.81% APY vs. the 3.45% APY of the standard account. But now the Costco account only has a 0.05% advantage (3.80% vs. 3.75%). In addition, it has the high minimum deposit requirement of $5000. The only reason to go for this account would be either the $25 signup bonus or the higher CD rates. The Costco CDs do have significantly higher rates than the standard CDs (ranging from 0.65% higher on a 2-year CD to 0.27% higher on a 5-year CD.)