$50 New Account Bonus at Capital One Direct Banking - Nationally Available

Update 4/14/09: There's a new $50 bonus listed at this Capital One promo page. This new one appears to be good through 5/29/09.

Capital One Direct Banking has a promotion for opening a new account. Here's the promotion page. Below are the details listed in this page as of 3/22/09:

• Account must be opened by 4/15/2009
• This account must be your first account with Capital One Direct Banking
• At least $10,000 must be on deposit on 05/8/2009
• Offer code OFFER50 must be used
• Capital One Direct Banking savings account, money market account or CD qualify
• Interest credits will be deposited to your account 4-6 weeks after 05/29/2009

This promotion appears to be available to everyone. I've noticed more promotions these days that are targeted to specific customers. I don't see any signs that this is targeted. However, I don't see this promo page linked at Capital One Direct Banking's main website. Make sure you save this promo page if you apply.

As of 3/22/09, the Online Savings Account has a rate of 2.01% APY for balances of at least $10,000 (1.01% for below). Minimum initial deposit is $1, and it has no monthly service fees. I have more details on this account in this review.

The High Yield Money Market Account has a less competitive yield (1.60% APY for all balances as of 3/22/09). Unlike the savings account, it offers limited check writing, and the checks are free.

The main downside with these two accounts is a slow ACH transfer system. Reports are that it takes at least 3 business days to complete an electronic transfer with at least 2 days of losing interest.

Capital One used to have some competitive CD rates, but they're currently not competitive.

Capital One has two FDIC charters, and these two have different Bankrate ratings (based on 9/30/08 data):

• Capital One Bank (USA), Glen Allen, VA, FDIC Cert # 33954, Bankrate star rating of 5
• Capital One, N.A., Mclean, VA, FDIC Cert # 4297, Bankrate star rating of 4 (had been 3 in previous quarter)

I've been told by a Capital One banking rep that new deposits are held by Capital One, N.A. The FDIC shows Capital One, N.A. to hold most of the deposits, so this seems to be correct.

Thanks to the reader Thomas who commented on this bonus in the Daily News and Deals Post.

Tags: Capital One Direct Banking, savings account