[📌 Update September, 2022: Following the FED’s third historic rate hike on the summer on September 21st, Capital One bumped up the yields on nearly all their CDs (certificates of deposit) by between 0.30% and 0.55% APY. Top APY (annual percentage yield) is now 3.50%. See all of Capital One’s CD rates below.]
Capital One offers a number of online certificates of deposit as part of their 360 product suite. The terms come with standard lengths ranging from 6 months to 60 months and above average annual percentage yields.
Their CDs also come with more flexibility than most certificates offered by large national banks. Right now, all Capital One 360 CDs have no minimum deposit and can be opened with any dollar amount that is right for you.
That said, these products must be opened and managed online. But don’t worry, they make it exceptionally easy with their web (and mobile web) interface as well their highly rated apps for IOS and Android.
Below is our full review of their CD offerings. If you have experience opening a CD with Capital One, please feel free to share your experience in the comment section below.
Capital One 360 CD Rates + Account Details
Capital One 360 CDs are federally insured by the FDIC up to $250,000 per depositor or $500,000 on joint accounts. As mentioned there are no minimum deposit requirements, but you will need to deposit something in the account to open it.
360 CD Rates
To give these yields some context, the average yield on a 12 month CD and a 60 month CD sit at just 0.60% and 0.74% APY, respectively, according to recent FDIC data.
Compounding and Crediting Interest
Interest is compounded monthly on all Capital One 360 CDs and credited to your account either monthly, yearly or upon maturity. You can have these funds deposited into a separate account or returned to the CD for further compounding.
Capital One 360 CDs come with a standard 10 day grace period. You’ll also want to note that Capital One CDs automatically renew, so if you plan on adding or withdrawing funds to your CD this 10-day period is the only time you can do so penalty free.
Early Withdrawal Penalties
If you withdraw funds from a CD you opened with a term of 12 months or less, you’ll have to pay three months’ interest as a penalty.
If you withdraw funds from a CD you opened with a term of greater than 12 months, you’ll have to pay six months’ interest.
Please note that it is possible to incur a penalty that dips into your principal if the withdrawal happens early enough.
How to Open a Capital One 360 CD?
If you decide you want to open a Capital One 360 CD, first navigate to their online CDs page here.
On this page you can take another look at any of the terms, conditions, or features one last time before you open the account.
Once you’re ready to open a deposit, click on the green “Open Account” button at the top of the page. This button remains static at the top of this page as you scroll.
It will look something like this (below):
Once you click on that green button, the process takes about 5 minutes to complete. They’ll first ask you whether or not you already have a Capital One login. If you’ve opened a checking, savings or even credit card with them (either online or in a branch) then you likely have a login already. If you do, this should expedite the process.
If you do not, and this is your first account with Capital One, then you’ll need the following:
- Full legal name
- Current address
- telephone number
- employment status (and job title)
- social security number
- date of birth
Capital One will then use your personal data to confirm your identity. If you are looking to open a joint account, you must first go through this process individually then you can add another account holder online.
Once your identity is confirmed and the account is opened, you will be provided with your account number and the routing number. You then have the option to add funds immediately to your CD. Your rates are locked in the moment you open the deposit until maturity.
Capital One 360 CD Reviews and Customer Sentiment
The Capital One 360 product suite receives high marks across the board from third party review sites. Their savings products in particular – both the variable rate online savings account and the fixed rate online CDs – receive above average marks for consistently higher than average yields and flexible terms. Most notably the lack of minimum deposit or balance requirements to earn the advertised interest.
You can manage your money easily either online or through one of their native apps. Their IOS and Android apps both receive high marks (especially as far as banking apps go). Their IOS app currently has 4.8 stars out of 5, while their Android app has 4.6 stars out of 5.
How Capital One’s CD Rates Compare
Of all the major US banks, Capital One offers the most competitive yields on their certificates of deposit via their 360 CD accounts. And it isn’t even close. Bank of America, Citibank, U.S.Bank, Wells Fargo, Chase, etc. all offer substantially lower yields on their CDs per the time of this writing.
There are, however, a handful of online banks and credit unions with nationwide acceptance that have slightly higher yields but the top rate leaders shuffle around often especially in our rising interest rate environment.
Capital One also offers extremely flexible terms with no minimum deposit requirements and several options for paying out interest which makes their accounts available for nearly everyone.