Capital One Direct Banking has a another $50 promotion for opening a new account. Below are the details listed on its promotion page as of 10/08/09:
- Savings account or money market account must be opened online by 11/25/2009
- This account must be your first account with Capital One Direct Banking
- At least $10,000 must be on deposit on 11/25/2009
- Offer code SAVER50DF must be used
- Account must remain open 4-8 weeks after 11/25/2009 during which time the bonus will be deposited into your account
- Minimum initial deposit amount is $1
As of 10/08/09, the Online Savings Account has a rate of 1.60% APY for balances of at least $10,000 (0.60% 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 pays 1.20% APY on all balances. Like the savings account, it has no monthly service fees. The advantage of the money market is that it offers limited check writing (checks are free) and an ATM card.
Faster Incoming ACH Transfers
The main downside with these two accounts had been a slow ACH transfer system. Readers have reported that it takes at least 3 business days to complete an electronic transfer with at least 2 days of losing interest. However, last month Capital One made improvements to their ACH transfer service. When you initiate an inbound ACH transfer at Capital One, the transfer will complete the next business day. A transfer can be scheduled up to 7:00PM Eastern Time, and it will post the following business day to both the Cap One and external account.
Unfortunately, Capital One has not yet made improvements to outbound ACH transfers. When you initiate an outbound ACH transfer at Capital One, it'll still take 3 business days with 2 business days in which the money isn't earning interest. According to the CSR, they're looking to improve this in the future.
Besides the slow outbound ACH transfer speed, Capital One's ACH service has many nice features:
- High ACH transfer limit per day: $250,000 in or out
- Allows up to 99 linked external accounts
- External links are set up online with verification via trial deposits
Capital One's CD Rates Went Up
For the last several months, Capital One's CD rates have been very low (i.e. 1.50% 10 year CD). However, I just noticed that some of the rates have gone up substantially. The two that are now fairly competitive are the 2-year CD with a 2.30% APY and the 4-year CD with a 2.95% APY. These rates are listed at the Capital One's CD rates page as of 10/08/09.
Higher Rates and New Account Bonus for Costco Members
Costco members can get higher rates and a new-account bonus at Capital One. Details are described at the Capital One/Costco Direct Banking page. For those who plan to keep a balance of at least $15,000, the InterestPlus Online Savings Account is a good deal (see account review).
Capital One's SmartCents Program
For those who live near a Capital One branch, you can sign up for Capital One's SmartCents program. This is a program like Bank of America's Keep the Change program which requires the use of the debit card (see post).
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 4
- Capital One, N.A., Mclean, VA, FDIC Cert # 4297, Bankrate star rating of 3
Other Competitive Bank Bonuses and Savings Account Rates