Capital One Bank has increased the yield on its 5-year CD to 5.20% APY at its Direct Banking operation which is available nationwide. The other CD rates have remained the same. Many are still very competitive such as the 4.41% APY 18-month CD, the 5.00% APY 48-month CD and the 5.50% APY 7-year CD. The minimum deposit is $5,000. The Jumbo CD yields for the 4- and 5-year CDs earn an extra 5 basis points. These require a $100,000 minimum deposit. An additional 5 basis points rate is available for Costco members.
Capital One branches continue to offer a 5.25% APY 60-month CD and a 4.50% APY 24-month CD. Minimum deposit is $1,000. These require a branch visit to open (see post). As I mentioned in that post, one advantage of the branch CDs is that the early withdrawal penalties are more straightforward ($25 plus 3% of the withdrawal amount). The Direct Banking CD penalties factor in the Economic Replacement Value (see post).
Capital One Direct Banking continues to offer a competitive rate on its Online Savings Account. The yield is currently 3.55% APY for balances over $10,000. The main downside to this account seems to be Capital One's slow ACH transfer system in which transfers can take at least 3 business days to complete. I have more details in my Capital One Online Savings Account review.
FDIC and Financial Info
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 $108.5 billion in assets and $72.5 billion in deposits based on 6/30/08 data. Capital One's rating at Bankrate is 3 stars (performing) based on 6/30/08 data. The rating at BauerFinancial continues to be 3.5 stars (good) based on 6/30/08 data.