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Capital One Increases Rates on its Online Money Market Accounts

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Capital One Direct Banking
Update 2/22/08: The yields have fallen. Please check the bank's website for the latest rates.

Capital One increased the yields on its Costco Money Market from 5.00% to 5.20% APY and on its High Yield Money Market (HYMM) from 4.75% to 5.00% APY. This puts CapOne's rates where they were before their rate drop in late April. From January to April, they had these same 5.20% and 5.00% yields.

These money market accounts have several nice features including free checks and no monthly fees regardless of balance. The Costco one does require an initial deposit of $1,000 and you must maintain a balance of $100 to earn interest. If you're an executive Costco member, you can receive a $50 signup bonus if you deposit $5K within 30 days of account opening.

Thanks to the reader who mentioned this rate update in the comments of the finding deals post. The reader also mentioned that they're offering an extra dollar per month for every extra $1,000 deposited to an existing account (through the end of August). Customer service is only available up to 8:00pm EDT, so I'll have to call tomorrow for more details.

Update 8/2/07:

I just called CapOne's customer service, and I was told that the promotion which you receive $1 for every $1K deposited in August is targeted to select existing customers. So that's why it's not listed on the website.

As one of the commenters mentioned, CapOne's ACH transfer system has some nice feature, but the transfer time is slow. Here are some details I learned from my call:
  • You can link up to 10 external accounts that can be used for fund transfers.
  • There's a maximum deposit limit of $250K/day on in/out ACH transfers
  • You don't have to maintain your Costco membership to keep the Costco Money Market Account

  Tags: Capital One Direct Banking, savings account

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