What is happening at Capital One?

RichardW
  |     |   821 posts since 2019

What’s happening at Capital One? Even Discover, Marcus, Ally, and American Express currently offer higher rates than Capital One’s savings account. Most of Capital One’s direct CD rates have not changed since 12/14/2022. The three CD rates that have changed, the 3-year, 4-year, and 5-year have all been rate decreases. The one exception was their brief 11-month CD promotion @ 5.00% which ended last month. Additionally, they have not issued any new issue brokered CDs since November 2022. I guess their credit card business is doing fine and they don’t have a need for additional deposits.

Here are the Capital One rates as of 4-1-2023:

Savings Account @ 3.40%

3-month CD @ 3.30%

9-month CD @ 3.30%

12-month CD @ 4.15%

18-month CD @ 4.25%

24-month CD @ 4.30%

30-month CD @ 4.30%

3-year CD @ 4.30%

4-year CD @ 4.20%

5-year CD @ 4.10%

To view Capital One rates see: https://www.capitalone.com/bank/




sams1985
  |     |   781 posts since 2022
If i had the guess, they just simply don't need any more deposits...last fall they issued a ton of CD's- I remember week after week and each one was issued for $212 million on Fidelity alone. So week after week of a billion in CD's may have done the trick.

Almost everyone i know views Capital One as a "safe bank" and has at least one account there. Most people's main credit card is also from Capital one (including one of my own). People are getting more savy about rates but somehow they seem to be immune from the bank exodus.
Kirkland
  |     |   377 posts since 2014
RichardW is foreshadowing the next big new issue :)
JeffinEasternFL
  |     |   744 posts since 2020
I was there a decade+ ago when I had both their banks "high yield" savings accounts at each bank - and saw both drop APY to around .55 BPS fast. Chased, chased and 10~ years later NOT chasing short term liquid account top rates anymore only to be "bottom tier" months later.

Over a year at MBoI with the Money Market Checking and extremely happy w/ service, responsiveness, free checks, no wire fees, instant credit to my account with no holds, unlimited external ACH, FDIC coverage to $1M (at the same great rate) and always - in good yield times or bad, near or in the top 10%~ of accounts.

End of that story!
buckeye61
  |     |   454 posts since 2011
They must have their desired funding levels, and they are also offering a bonus for new deposits into a new savings account. I'm they also have some of the same exposure to low yielding bonds in their porfolio.
Rickny
  |     |   1,298 posts since 2017
They closed 4 out of 5 CapOne branches in my county a couple years back. Opened an 11 month CD @ 5% with Capone in February.

With savings accounts paying a bit more than 5%, many of the big banks are no longer competitive.
Maecl
  |     |   149 posts since 2010
Still far behind. CapOne just raised the savings rate to 3.50%.
w00d00w
  |     |   360 posts since 2012
Capital One is raking it in, from Lending Tree, reported March 17th:

The average credit card interest rate in America today is 23.65% — the highest since LendingTree began tracking rates monthly in 2019.
more than half of active credit cardholders carry a balance. The average APR for all accounts in the fourth quarter of 2022 was 19.07%. That’s an enormous increase from the previous quarter, when the average stood at just 16.27%. (In the quarter before that, it was just 15.13%.) Meanwhile, the average for accounts accruing interest is far higher at 20.40%. Both of those numbers are the highest they’ve been since the Fed began tracking in 1994.
https://www.lendingtree.com/credit-cards/average-credit-card-interest-rate-in-america/


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