Capital One 18-Month CD Earns 1.90% APY

Capital One’s 18-month 360 CD is another NTS (New to Summary) addition to this week’s CD Rates Summary. Currently earning 2.55% 1.90 APY, the 18-month 360 CD is listed in the Summary’s top four nationally available 18-month CDs.

Capital One 360 CDs have no minimum opening deposit requirement, “however, your Certificate of Deposit account may not exceed $1,000,000.” In addition,

We reserve the right to return any deposit to you that causes the combined balance of all of your accounts with us (including any jointly owned, or in the case of an account owned by a living trust, jointly managed accounts) to exceed $5,000,000.

Capital One began offering 360 IRA CDs (Traditional and Roth) about 18 months ago. The 360 IRA CDs currently earn the same rates as the 360 CDs, with the same no-minimum balance requirement.

With the highest 360 CD APY in the Capital One product line, the 18-month has experienced four rate increases and two rate decreases in the past year. Even with the two rate decreases, the current APY is 80 bps higher than it was in September 2018.

Capital One 360 CDs can only be closed early; there are no partial withdrawals allowed. As stated on the 360 CD Account Details page, the Early Withdrawal Penalty reads as follows:

For CD accounts longer than 12 months, the penalty for withdrawing early is
6 months of interest. You also cannot make a partial withdrawal during your CD term.

POD Beneficiary Designations Are Now Possible

After many years of customer complaints, Capital One changed its beneficiary policy for 360 deposit accounts in the summer of 2018, although not without some issues. My July 2019 blog post describes the initial changes (and problems), while the subsequent December 2018 blog post discusses the addition of an online platform for adding and managing beneficiaries.

Up to 10 beneficiaries per account can now designated, with Social Security numbers required for all beneficiaries. (There is one exception: beneficiaries cannot be assigned to a Trust account.) Once beneficiaries are named, the bank account will be referred to as a "Payable on Death" (POD) account.

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 CD can only be done online and must be funded from a checking account at another U.S. chartered bank (known as your Linked Account). According to the 360 CD Disclosure,

You must tell us to either electronically transfer money from your Linked Account or give us a personal check drawn on your Linked Account. Your 360 CD account won't be considered "opened" until it's funded and you complete our verification procedures.

If you already have a Capital One account, your existing Linked Account(s) will also be linked to any 360 CD you may open.

Bank Overview

Capital One has an overall health grade of "A+" at DepositAccounts.com, with a Texas Ratio of 2.29% (excellent), based on June 30, 2019 data. In the past year, Capital One has increased its total non-brokered deposits by $18.2 billion, an excellent annual growth rate of 8.09%. Please refer to our financial overview of Capital One (FDIC Certificate # 4297) for more details.

With assets in excess of $311 billion, Capital One is currently the seventh largest bank in the country. Besides having a large branch network (more than 480), Capital One also has a large internet banking division, previously known as Capital One 360.

Capital One acquired the internet bank, ING Direct, in 2012 and shortly afterward, ING Direct was transformed into Capital One 360. Operating as a subsidiary of Capital One Financial Corporation for about four years, Capital One 360 was absorbed in Capital One in 2017. Although Capital One 360 no longer exists as a separate entity, all of the Capital One 360 products are still available, but offered from the CapitalOne.com website. FYI – CapitalOne360.com automatically forwards visitors to CapitalOne.com.

How the 360 CD Compares

When compared to 160 similar length-of-term CDs tracked by DepositAccounts.com that require a similar minimum deposit and are available nationwide, Capital One's 18-month 360 CD APY currently ranks second.

The above rates are accurate as of 9/12/2019.

To look for the best CD rates, both nationwide and state specific, please refer to our CD Rates Table.