Dedicated to Deposits: Deals, Data, and Discussion

Capital One CD and Money Market Promotions in Texas


Capital One Direct Banking
Capital One Bank is offering a CD and a money market promotion in Texas. The CD special is the more competitive offering with a yield of 4% APY and a term of 12 months. The minimum deposit is $1,000. This doesn't seem to be listed at Capital One's website. It was advertised in last week's Houston Chronicle. The ad is available online here (update: no longer available). I just called Capital One and confirmed that it's still available in Texas. However, the CSR said they update their rates every Wednesday so it may change tomorrow. This 4% yield for a one year term is 50 basis points higher than what Capital One offers online.

The money market account promotion offers a 3.20% APY for balances of $5,000 or more. According to he application in the money market page, you'll be required to visit a branch office in Texas or Louisiana if you submit your application online. Unlike Capital One's online-only MMA, this one has a $15 monthly fee if the balance falls below $5,000. The CSR said this promotion has been going on now for about 2 months and is expected to last for the rest of this year.

Below are links to some of my recent reviews of Capital One's online savings accounts, money market accounts and CDs. Many readers have included their comments in these posts regarding Capital One's customer service, and many have reported various problems.
Capital One has two FDIC entities, however, I've been told that new accounts will be FDIC insured through Capital One, N.A. (FDIC Certificate # 4297). It's a large bank with $104.8 billion in assets and $69.5 billion in deposits based on 3/31/08 data. Capital One's rating at Bankrate has gone down to 3 stars (performing) based on 3/31/08 data. It had been 4 stars based on 12/31/07. The rating at BauerFinancial continues to be 3.5 stars (good) based on 3/31/08 data.

Thanks to the reader who mentioned this promotion in the finding the best deals post.

  Tags: money market accounts, Louisiana, CD rates, Capital One Direct Banking, Texas

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Comment #1 by John (anonymous) posted on
Cap One is also advertising these accounts on the radio in Austin, TX (KLBJ AM, specifically).

Comment #2 by Anonymous posted on
Baking Guy - where are you seeing 3 stars on When I pull up the High Yield MMA accounts on it shows Capital One Direct Banking with 4 stars. Is there another page that it shows only 3?

Comment #3 by Banking Guy (anonymous) posted on
Banking Guy
If you click on the Bankrate link in the post, it'll take you to the Bankrate rating and overview page of Capital One. This page shows 3 stars. I have seen cases where star ratings on Bankrate's tables don't match what's in their database.

Comment #4 by Anonymous posted on
I see what you are talking about now. It would be nice if they kept those in sync since it can be misleading if you go on just the tables alone. Thanks for the info.