Update 4/15/10: InterestPlus Online Savings rate has risen to 1.35% APY. The MMA rate remains the same at 1.10% APY. The bank no longer lists the One Savings Account.
Capital One Direct Banking 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 OR use a Capital One credit card at least once a month
- Top rate applies to balances of $2,500 or more (compared to $10,000 with the OSA)
- Top rate is 1.70% APY as of 11/08/09 (10 basis points higher than the OSA)
There is one downside compared to the OSA: rate is 0% for balances under $2,500 while the OSA has 0.60% APY for balances under $10,000 as of 11/08/09.
In July 2009 Capital One introduced this account for Costco customers. The Costco version has a rate that's 5 basis points higher. However, it has a higher minimum balance ($5,000) to qualify for this top rate. Another benefit with the non-Costco version is that they give you another option to qualify for the 10% bonus. In addition to a $15K balance, you can qualify by using a Capital One credit card.
Like the OSA, the InterestPlus account has no fees, and it has an ACH bank-to-bank transfer service.
If the APY stays at 1.70%, the 10% bonus would make the effective APY equal to about 1.87%.
Capital One's ACH Bank-To-Bank Transfer Service
Capital One has recently 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
For more details of the savings account and money market account, refer to my Capital One Online Savings Account review..
Capital One Bonuses
There is still a new-account bonus available for opening the Capital One Online Savings Account (see post). It doesn't seem to apply to the InterestPlus Online Savings Account. If you're a Costco member, you can also get a new-account bonus (see post).
Capital One has two FDIC charters, and these two have different Bankrate ratings (based on 6/30/09 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
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 who mentioned this savings account in the bank deals hub page.
Other Competitive Bank Bonuses and Savings Account Rates
04/15/10: InterestPlus Online Savings: 1.35% APY: MMA: 1.10% APY
04/08/10: InterestPlus Online Savings: 1.30% APY: MMA: 1.10% APY
03/13/10: InterestPlus Online Savings: 1.25% APY: MMA: 1.05% APY
02/04/10: InterestPlus Online Savings: 1.45% APY: MMA: 1.15% APY
01/13/10: InterestPlus Online Savings: 1.55% APY: MMA: 1.20% APY
11/27/09: InterestPlus Online Savings: 1.60% APY: OSA: 1.50% APY: MMA 1.20% APY.
11/08/09: InterestPlus Online Savings: 1.70% APY: OSA: 1.60% APY: