Capital One 360 CD Rates Review: Competitive Rates Available

Learn if Capital One's CD offerings are the right fit for you.

No matter how limited your investment funds currently are, you can open a certificate of deposit account with Capital One. The bank doesn’t require a minimum deposit amount, so you can start saving and earning money now — as long as you don’t need to touch the principal for the term you select.

Keep reading to find out about what Capital One has to offer in the way of CD rates and terms, and to determine whether or not it’s one of the best CD accounts you can find.

Capital One 360 CD Review

Although credit cards might be the first thing you think of when you hear the name Capital One, the bank provides a host of financial products to consumers, including Capital One 360 certificates of deposit. And, for the most part, the pros connected to these CD accounts outweigh the cons.

Be Prepared: What to Ask Before Opening a CD Account

Capital One 360 CD Rates vs. Average CD Rates

All things considered, Capital One 360 CD rates are competitive and all of its offerings rank higher — some more so than others — than the average CD rates. For example, Capital One’s one-year CD offers 2.40% APY, but the national average rate for a one-year CD is 0.40% APY as of July 6, 2018. For a five-year CD, Capital One’s rate is 3.00% APY, and the national average rate is 1.05% APY.

How Much You’d Earn With Capital One 360 CDs

Check out this table to see how much you could be making by opening different Capital One 360 CDs:

How Much You’ll Earn With Capital One 360 CDs Over Time
Initial Deposit6-month CD12-month CD60-month CD
$500$501.50$511.51$576.92
$1,000$1,002.99$1,023.02$1,153.84
$5,000$5,014.97$5,115.10$5,769.19
$10,000$10,029.94$10,230.20$11,538.39
$25,000$25,074.86$25,575.51$28,845.97
$50,000$50,149.72$51,151.01$57,691.93
Calculations with rates and earnings are accurate as of July 6, 2018.

How Capital One 360 CD Rates Compare to Rates From Other Banks

When compared to the national average of CD rates, Capital One’s CD rates are impressive. Plus, its rates even hold up to the competition.

12-Month CDs
BankAPY
Capital One2.40%
Discover2.25%
Bank of America0.05%
Chase Bank0.02%
Capital One, Chase and Discover’s rates are accurate as of today. Bank of America’s rates are accurate as of July 6, 2018.

 

Five-Year CDs
BankAPY
Capital One3.00%
Discover2.85%
Ally Bank3.00%
Capital One, Ally Bank and Discover’s rates are accurate as of today.

For example, although Capital One offers 2.40% APY for a 12-month CD, Discover comes close by offering 2.25% APY. Bank of America, however, trails way behind both Capital One and the national average at 0.05% APY. And Chase Bank’s rates on a 12-month CD are even less at 0.02% APY for all deposits under $100,000.

Another example is Capital One’s five-year CD, which has a rate of 3.00% APY. Ally Bank comes in under that rate with the same CD term at 3.00% APY, depending on deposit amount. Discover offers 2.85% APY for an initial deposit of $2,500.

Grow Your Funds: Why You Should Open a CD

Capital One 360 CD Advantages

Capital One offers some competitive rate options. Here are some other advantages to getting a CD with this bank:

  • No minimum deposit required to open or maintain a CD
  • 10-day rate lock guarantee while waiting for funding
  • Simple, online management of CD accounts
  • Options for monthly, annual or end-of-term interest payouts
  • Ability to open multiple CD accounts

Check Out: 5 Insider Tips to Get the Highest CD Rates

Capital One 360 CD Disadvantages

Although Capital One offers plenty of advantages when opening a CD account, there are also disadvantages. Here are some of the drawbacks you’ll encounter with a Capital One 360 CD:

  • No designation for beneficiaries available
  • Early withdrawal penalty of three months of interest for CDs 12 months or less
  • Early withdrawal penalty of six months of interest for CDs greater than 12 months

Who Capital One 360 CDs Are Best For

Because Capital One doesn’t require a minimum deposit on its CDs, its offerings are perfect for people who only have a limited amount of money but want to start earning. Capital One has limited branch access across the U.S., so people who are comfortable with online banking will appreciate the bank’s CD offerings more. And, although many of Capital One’s CD rates are competitive, you might be able to find a better rate, depending on the term you’re seeking, by shopping around.

Up Next: How Often Do CD Rates Change?

Capital One, Chase and Discover’s rates are accurate as of today. Bank of America’s rates are accurate as of July 6, 2018.

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GOBankingRates is a personal finance and consumer interest rate website owned by ConsumerTrack, Inc., an online marketing company serving top-tier banks, credit unions, and other financial services organizations. Some companies mentioned in this article might be clients of ConsumerTrack, Inc., which serves more than 100 national, local and online financial institutions. Rankings and roundups are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved, or otherwise endorsed by the companies included in the article. All fees and rates are subject to change at the issuers’ discretion. Some interest rates might be short-term or promotional offers only, and it is possible additional terms and conditions must be met in order to obtain the interest rates listed. Rates and availability might vary by region. Verify terms and conditions before opening an account. 

Editorial Note: This content is not provided or commissioned by the bank advertiser. Opinions expressed here are author’s alone, not those of the bank advertiser, and have not been reviewed, approved or otherwise endorsed by the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.