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Capital One's New InterestPlus Online Savings Account for Costco Members


Capital One Direct Banking
Update 11/27/09: InterestPlus Online Savings rate has fallen to 1.65% APY. MMA rate has fallen to 1.40% APY.

Capital One Direct Banking for Costco Members has added a new account called InterestPlus Online Savings. It's similar to the Online Savings Account (OSA), but it has a few advantages:
  • 10% quarterly bonus on interest earned when you maintain a minimum average balance of $15,000 in your savings account each month
  • Top rate applies to balances of $5,000 or more (compared to $10,000 with the OSA)
  • Top rate is currently 5 basis points higher than the OSA
I've found one downside: Rate is 0% for balances under $5,000 while the OSA has 1.06% APY for balances under $10,000 as of 7/19/09.

The top InterestPlus Online Savings rate is 1.85% APY as of 7/19/09. Like the OSA, the InterestPlus account has no fees, and it has an ACH bank-to-bank transfer service.

If the APY stays at 1.85%, the 10% bonus would make the effective APY equal to about 2.04%. The 10% bonus appears to be another way to encourage customers to maintain a larger balance. I guess the 10% bonus sounds better than just having a new $15K rate tier.

I don't see this InterestPlus account available for non-Costco customers at Capital One's Direct Banking page. In the past, Capital One's standard Direct Banking offered the same accounts as their Costco accounts but just with slightly lower rates. Another plus with the Costco accounts is that there's a new-account bonus:
Executive Members receive a $60 member incentive and Gold Star and Business Members receive a $20 member incentive on your first Direct Banking account of any kind opened through the Costco program with at least $5,000 deposited into the account in the first 30 days after opening.

I described many details of Capital One's accounts including their ACH transfer service in this May 2008 post. The main downside seems to be Capital One's slow ACH transfer speeds. Readers have reported that it takes at least 3 business days to complete. The money is pulled from the source account the day after you initiate the transfer, and it won't post until 3 business days later. Interest is lost during this time.

Another potential downside with Capital One is the customer service. Several readers have reported various problems in my May 2008 post and in this April 2008 CD post.

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 $118 billion in assets and $83 billion in deposits based on 3/31/09 data. Capital One's ratings for safety and soundness are strong: 4 stars (sound) at and 3½ (good) at BauerFinancial. Both ratings are based on 3/31/09 financial data.

For other high yield savings accounts, please refer to my weekly rate summary.

  Tags: Capital One Direct Banking, savings account

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Comment #1 by Anonymous posted on
Do I need to renew costco membership every year to keep the capital one costco rate or do I only need costco membership to open the account?

Comment #2 by Latest News (anonymous) posted on
Latest News
Is this info valid?

any way thanks..

Finsofts Website

Comment #3 by Anonymous posted on
any incentive to move from ally to this since the difference is 0.25%

Comment #4 by Anonymous posted on
Ally OSA rates continue to slide. I've made the move to Capital One new Costco acct today.

Comment #5 by Anonymous posted on
I assume the bonus applies to calendar quarters? The next quarter starts in October, so we would not get a bonus for August and September?

Comment #6 by Anonymous posted on
how is the account opening process?
how long does it take?
any paperwork needed during opening? if yes whats the total time taken?
is it better to initiate the transfer from external bank?
hows customer service?

Comment #7 by Anonymous posted on
3 day ACH now down to 1 day

Comment #8 by Anonymous posted on
3 day ACH down to one day ONLY FOR INCOMING TRANSFERS! The OUTGOING transfers still take 3 business days and your money is "lost" in the cloud for 2 days.

Note that Cap1 sent notice to customers of changed online banking T&C which states that "up to a 1 business-day delay may occur in completing and posting transfers between your accounts" and continued 3-day delay for outbound is contrary to these terms, so I recommend everyone who has account call/complain to CapitalOne - I suggest contact Tisha / NDB Account Supervisor @ 804-934-2184 and when you get the run-around from her (which you will) file a complaint with the Comptroller of the Currency @

Comment #9 by Anonymous posted on
Costco InterestPlus Online Savings rate down to 1.60%

Comment #10 by Daffney Hanes (anonymous) posted on
Daffney Hanes
If this kind of info is valid, how long you are they going to take to process a new member for example? What are they going to do, and what kind of services will we get? I need a savings account just for my future. Regards