Capital One Increases Rates on 360 Money Market Account and CDs
On Friday, Capital One raised the rate on its 360 Money Market by 15 bps to 2.00% APY on balances of $10k+. The APY for balances below $10k remains at 0.85%.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 2.00*% | $10k | - | Capital One | 360 Money Market | |
| OTHER TIERS: 0.85% → Up to $10k | |||||
Capital One is the latest of the large internet banks to raise their savings or money market rate to at least 2.00% APY. Several other large internet banks have already made this move in the last month. These include Synchrony, Goldman Sachs, FNBO Direct and Barclays. So Capital One is a little behind. You can see below how the 360 Money Market recent rate history compares to the other large internet banks.
- Nov 9: Capital One 360 Money Market: 2.00% APY, $10k+
- Nov 6: Synchrony High Yield Savings: 2.05% APY
- Nov 5: SFGI Direct Savings: 2.07% APY
- Oct 30: Barclays Online Savings: 2.05% APY
- Oct 29: Citizens Access Online Savings: 2.25% APY, $5k+
- Oct 26: Goldman Sachs Bank USA High-yield Savings: 2.05% APY
- Oct 19: FNBO Direct Online Savings: 2.00% APY
- Oct 18: Sallie Mae Bank Money Market: 2.12% APY
- Oct 15: CIBC Agility Savings: 2.16% APY
- Oct 12: Vio Bank High Yield Online Savings: 2.15% APY
- Oct 11: Discover Bank Online Savings: 1.90% APY
- Oct 3: Discover Bank Online Savings: 1.85% APY
- Oct 2: Synchrony High Yield Savings: 1.90% APY
- Oct 12: Goldman Sachs Bank USA High-yield Savings: 1.95% APY
- Oct 5: Sallie Mae Bank Money Market: 2.00% APY
- Oct 5: Ally Bank Online Savings: 1.90% APY
- Sep 28: Citizens Access Online Savings: 2.12% APY, $5k+
- Sep 27: American Express National Bank High Yield Savings: 1.90% APY
- Sep 27: Barclays Online Savings: 1.90% APY
- Sep 26: Federal Reserve Target Funds Rate: 2.00% to 2.25%
- Sep 19: Goldman Sachs Bank USA High-yield Savings: 1.90% APY
- Sep 19: Vio Bank High Yield Online Savings: 2.11% APY
- Sep 10: HSBC Direct Savings: 2.01% APY
- Sep 7: CIBC Agility Savings: 2.10% APY
- Sep 7: SFGI Direct Savings: 1.91% APY
- Sep 5: MySavingsDirect MySavings: 2.25% APY
- Aug 31: Ally Bank Online Savings: 1.85% APY
- Aug 31: Discover Bank Online Savings: 1.80% APY
- Aug 24: Capital One 360 Money Market: 1.85% APY, $10k+
The 360 Money Market has no monthly service charge, no-minimum opening deposit, or minimum balance requirement. The account does not offer check writing or debit cards. An ATM card (a 360 Money Market card) is available, but only by request. It’s not automatically issued.
Capital One launched the 360 Money Market Account in March 2016 with a competitive 1.00% APY. That rate held until June 2017 when the rate began to rise as internet banks finally began to respond to the Fed rate hikes. In the past year, a total of 100 bps have been added in nine rate increases.
Many thanks to DA reader, buckeye61, for his Forum post about Capital One's rate hikes.
360 CD Rate Hikes
Capital One also increased the rates on seven terms of its 360 CDs and 360 IRA CDs. All rates increased 10 bps. The two most noteworthy rate increases were the 12-month (2.60% APY) and 60-month (3.10% APY). These rate increases keep both competitive with the large internet banks. The new APYs are shown below in bold and are effective as of 11/9/2018. The previous APYs are noted inside parentheses.
- 60 mo - 3.10% (3.00%)
- 48 mo - 2.85% (2.75%)
- 36 mo - 2.80% (2.70%)
- 30 mo - 2.70% (2.60%)
- 24 mo - 2.70% (2.60%)
- 18 mo - 2.60% (2.50%)
- 12 mo - 2.60% (2.50%)
The last rate hike of the 360 CDs was on September 14 when six of the CD had rate increases. Today’s new rates don’t move Capital One into rate leader status, but at least they keep them close. All of the 360 CDs are now at least somewhat competitive except for the 6- and 9-month terms.
More details of these 360 CDs are shown in the following table. You can see the rate history of each CD by clicking on the “details” arrow on the right side of the row. To review all of Capital One CDs and IRA CDs, please refer to our Capital One 360 CD rate table.
360 IRA CDs
Capital One began offering 360 IRA CDs in March (Traditional and Roth) . These IRA CDs currently have the same rates as the regular CDs with the same no-minimum balance requirements.
Capital One 360 CD Details
Capital One 360 CDs have no minimum deposit requirement. Maximum deposit is $1 million. Interest is compounded and credited on a monthly basis. As stated in the Capital One CD account disclosure, the Early Withdrawal Penalty (EWP) reads as follows:
For a CD with a twelve (12) month or shorter term, the penalty is three (3) months interest, regardless of when you redeem the account prior to maturity.
For a CD with a term greater than twelve (12) months, the penalty is six (6) months of interest regardless of when you redeem the account prior to maturity.
POD Beneficiary Designations Are Now Possible
After many years of customer complaints, Capital One has changed its beneficiary policy for 360 deposit accounts. Customers can now designate up to 10 beneficiaries to each account. Once beneficiaries are named, the bank account will be referred to as a "Payable on Death" (POD) account. Unfortunately, there are some issues. I have more details in this post.
360 Savings Account and Checking Account
Capital One’s 360 Savings Account has been lagging the competition for awhile now. Its rate continues to be 1.00% APY for all balances. The last rate hike was in December 2017 when the rate increased from 0.75% to 1.00% APY. Capital One appears to be focusing on keeping 360 Money Market competitive instead of the 360 Savings Account. Unlike the Money Market, the Savings Account has no rate tiers. All balances qualify for the top rate.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 1.00% | - | - | Capital One | 360 Savings Account | |
| 1.00*% | $100k | - | Capital One | 360 Checking | |
| OTHER TIERS: 0.20% → Up to $50k | 0.75% → $50k - $100k | |||||
Since checks can’t be written from the 360 Money Market, I consider this to be more like a savings account. In terms of features, the only difference between the 360 Money Market and the 360 Savings Account is the balance tiers.
$200 Bonus for the 360 Money Market Account
Capital One often has a new-account bonus for its 360 Money Market Account. The latest bonus pays $200 for opening a new 360 MMA and depositing at least $10k by December 14, 2018. When you open your account, make sure to enter the promotional code OFFER200. New money is required, and customers must not have had a savings product with Capital One since January 1, 2016.
Here’s Capital One’s landing page for the $200 bonus offer.
In the past, these bonus offers have often been targeted. This one had been primarily targeted to Quicken customers, but the targeted language has been removed.
Many thanks to DA reader, vic1, for his Forum post about Capital One's bonus offer.
Availability
Headquartered in McLean, Virginia, Capital One describes itself as “a diversified bank that offers a broad array of financial products and services to consumers, small businesses and commercial clients.” Any U.S. citizen or lawful permanent resident, 18 years or older, with a U.S. physical address or a military address (APO or FPO) and a valid Social Security number, can open an account at Capital One.
Opening a 360 account can only be done online, and must be funded from a personal checking account.
According to the 360 Money Market Disclosure,
To get started, you’ll need to "link" your Money Market account to your personal (non-business) checking account at another U.S. chartered bank (this is known as your Linked Account).
If you already have an account with us at the time you open your 360 Money Market account, your existing Linked Account(s) will also be linked to your 360 Money Market account.
Bank Overview
With assets in excess of $289 billion, Capital One is currently the eighth largest bank in the country.
Capital One (FDIC Certificate # 4297) has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.36% (excellent), based on June 30, 2018 data. In the past year, Capital One has increased its total non-brokered deposits by $10.68 billion, an above average annual growth rate of 4.98%. Please refer to our financial overview of Capital One for more details.
Capital One has both a large branch network and a large internet banking unit. The internet banking unit used to operate as Capital One 360. In 2012, Capital One acquired the internet bank, ING Direct, and in 2013, ING Direct was converted into Capital One 360.
Capital One 360 had operated as a subsidiary of Capital One Financial Corporation, but that ended last year. Capital One 360 no longer exists as a separate entity. It’s now under Capital One. All of the Capital One 360 products still exist with the same names as before, but they’re now offered from the CapitalOne.com website. CapitalOne360.com now forwards visitors to CapitalOne.com.
How the 360 Money Market Compares
When compared to the 207 Savings Accounts and 185 Money Market Accounts tracked by DepositAccounts.com that are available nationally and have similar minimum balance requirements, 16 savings accounts and seven money market accounts have higher rates than the 360 Money Market Account.
| Interest Rate | Account Name | Credit Union/Bank |
|---|---|---|
| 2.26% APY | Popular Direct Plus Savings ($5k min) | Popular Direct |
| 2.25% APY | High Yield Online Savings ($100 min to open) | Vio Bank |
| 2.25% APY | Online Money Market ($50 min to open/$1m max) | MemoryBank |
| 2.00% APY | 360 Money Market ($10k min) | Capital One |
The above rates are accurate as of 11/11/2018.
To view the best Savings and Money Market rates, both nationwide and state specific, please refer to our Savings Account rates table and Money Market Account rates table.
But I had drained all the money from it a few years ago and closed it a few months ago. I have hated Capital One for 25 years over them charging me a credit card late fee when I was really not late and refusing to remove it. (They apparently did the same thing to many others back then)
I will not do business with them again and will bad mouth them forever. Over $30.
They have a regular drop box, where they don't hold your card hostage so I don't know why I even used the stupid ATM for a deposit anyway.
One thing that is starting near me is that you must pay a 5% surcharge at a few restaurants if you use a charge card. Similar to some gas stations.
And surcharges anywhere else are 100% against the credit card agreements those merchants have.
I have seen that around here. A low end quick mart had a hastily made sign that said no charges under $5. A bar, back 10 years ago had a $5 surcharge for paying with a cc. Those merchants can lose their ability to accept credit cards if someone complains and they don't stop.
That said, I don't understand how the cash/credit different prices at stations in other states get around the CC agreements? Only thing I can think of is State Law may trump the CC agreements?
As for me personally, yes I charge or use prepaid gift cards acquired at a discount for almost everything.
Speaking of that, Discovers 5%deal from Jan thru March is grocery stores. Just in time as I am almost out of Aldi GCs. (I will buy more at the end of March to hopefully cover 2019)
My power bill CC provider charges $3.60 for any amount up to $600. So, I prepay $603.60 every so often. Because my cashback exceeds the fee. I still don't know how they can charge such a small fee unless the people paying smaller amounts are making up for those that pay $600 like me. On $603.60, I earn $12.07 or more. Less the $3.60= 8.47 tax free gain. But if rates keep rising there will be a time when its not worth it to prepay. But interest income is taxable and CC cashback is not.
i do the same for all utilities .
just asking *ick
You think nice restaurants have copying machines in the back for their employees to use to steal credit card info? LOL
I would not worry about it. I've had 4-5 numbers stolen & used somehow over the years and they have never been out of my site. I have no idea how as I am careful. But it's never cost me a dime. Worst case is it takes a week for the new card to get here.
LOL Not copying machines, but phone cameras. Every Tom, Dick, and Harry the waiter carries a phone/camera in their pocket these days.
But the other times, I just can't figure out where they got them. My cards never leave my hand/wallet.
I have Allys Webroot and it scans daily and it has never found anything.
Your credit card info is stored many places. I have never lost any money due to credit card fraud.
I don't have that feature anywhere else. Ally debits the money as soon as the check is mailed. AA won't send the check unless the money is in the account but then the money is not debited until the check clears. I don't think I have overdraft anywhere else. Ally has that but only to the extent you have extra in a savings account with them.
But, I'm not going back to Cap One unless they send me my $30 + 25 years of interest and that will never happen. I had a heckuva time even closing the account. A half dozen times I waited on hold over 5 minutes on the phone. They do not have email or secure messages.
I had went to the BBB to file a complaint when I finally found an email address and they closed it for me. And sent me a check for the remaining balance of 1 cent. Even though I told them to keep it.
LOL