Capital One Bumps Up Rates on Money Market Accounts
Jan 18, 2007 - 8:30 AM by Ken Tumin
Capital One seems to have simplified its non-Costco money market accounts. They use to offer two types: one with check writing, a $100 minimum, and no ACH transfer sevice, and another without check writing, no minimum, but with an ACH transfer service.
Now they only advertise one account: the High Yield Money Market. According to the overview page it has no fees or minimum balance requirements, offers free checks, an ATM card, and online transfers to and from your existing accounts. For those who want the benefits of a no-minimum high yield savings account but also want check writing and ATM access, this looks like one of the best deals available.
The Costco version has always maintained rates about 0.20% higher than the standard money market account. Another benefit of this account is that Costco Executive members can receive $25 when they open the account. The downsides of this account is that you have to be a Costco member, make a minimum $5K opening deposit, and maintain at least $100 balance to earn the interest.
Capital One also offers a business money market account. Like the personal version, it has no fees or minimum balance requirements. However, the rate is a little lower at 4.80% APY.
According to this old FW thread Capital One only does a soft credit pull (not hard) on Experian.
Capital One is FDIC insured through Capital One Bank and Capital One, FSB.
Update 3/18/07: There's now a $50 bonus for the Costco MMA. See post for more info.
Banks Mentioned in this Post:
Featured Savings Account
Nationwide Savings Accounts
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Anonymous - #1, Thursday, January 18, 2007 - 4:02 PM
I ceased being a Capital One customer, after MANY years, when they moved their processing from Virginia to Texas. Did not want my in-transit deposit items to take an extra day or two to reach them. So I guess interest rates aren't everything. The interest rate is zero percent when my checks are still in the clutches of the USPS; instead of having been received, processed, and credited to my account. Was I pissed about their wacky move to Texas? Yup. You got it. I sure was. They told me I was not alone.
Bill in California (anonymous) - #2, Thursday, January 18, 2007 - 7:48 PM
I have an existing Capital One High Yield Savings account. I called the CSR and asked about getting checks and atm cards for the account now that they have only the one High Yield MM account.
As I expected, it is grandfathered.
I would have to open a new account to get those features. Not a problem, I may do so, but I really like the savings account I have with them. It is a great hub account with no limits on the number of transactions. Very handy for pushing and pulling money without worrying about monthly limits.
Anonymous - #3, Thursday, January 18, 2007 - 9:46 PM
Costco accounts can now also use external ACH, so the only distinction between Costco and the new non-Costco accounts is the interest rate.
Bill in California (anonymous) - #4, Friday, January 19, 2007 - 6:46 PM
Anonymous said...
Costco accounts can now also use external ACH, so the only distinction between Costco and the new non-Costco accounts is the interest rate.
7:46 PM, January 18, 2007
The other distinction is the Costco account has a $5000 minimum to open.
Boby (anonymous) - #5, Friday, July 25, 2008 - 8:12 AM
Hi. I should say your blog is very interesting. Also I think it is very informative. I have been looking for a good band and could not decide what to choose. Just as I stopped my choice on Capital One Bank I bumped into this great site www.pissedconsumer.com and your blog as well. Now I can safely say I will not have any business with this bank.
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