Capital One CD Rates for October 2023

Capital One computer
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A certificate of deposit from Capital One guarantees a higher interest rate for the term you choose. Among the Best CD Accounts listed by GOBankingRates in 2023, Capital One offers nine different CD options, which vary in term length between six to 60 months. Keep reading to learn about Capital One CD rates for October 2023.

Capital One CD Rates

Capital One’s 360 CD accounts have APYs that range from to . Here’s the breakdown of Capital One CD rates. 

Term Length APY
6-month CD
9-month CD
1-year CD
18-month CD
2-year CD
30-month CD
3-year CD
4-year CD
5-year CD

Be aware that CDs are meant to save for the future, and they lock your funds in for the term length you choose. If you try to take out the funds before the account has reached maturity, you will incur early withdrawal penalties and stop earning interest on the account itself.

When selecting a term length, make sure you are comfortable with not being able to access the money you put into your CD account during the period you choose. Capital One’s CDs come with early withdrawal penalties ranging from three to six months’ worth of interest.

More from Your Money

A nice feature of Capital One CDs is that there is no minimum deposit requirement. You can open a CD with any amount of money. The funds you deposit will earn interest on a daily compounding schedule. But the interest earned will be deposited into your account on a monthly basis.

How Capital One’s CDs Stack Up

Capital One CD rates are some of the highest on the market. And the rates are significantly higher than the national average rates. For example, the average rate on a 12-month CD is 1.76%. Capital One’s current offering is almost three times that rate. While Capital One is offering attractive rates, it is possible to find higher rates elsewhere. Before committing to working with Capital One, explore all your CD options to lock in the best rate.

A nice feature of Capital One is that the bank offers a wide range of useful account options. For example, you might choose to move your savings to Capital One to take advantage of the relatively high APYs offered for both savings accounts and CDs. Plus, the bank offers a fee-free checking account that’s worth consideration. Choosing to open multiple accounts with Capital One could streamline your financial management tasks.

Another Option: Capital One 360 Performance Savings

Capital One’s 360 Performance Savings was the winner in GOBankingRates’ Best Savings Accounts rankings for 2023. It earned this ranking for its competitive interest rate and for having no monthly fees and no minimum deposit requirements. If you are not quite ready to commit to a term length for CD-style savings, this high-yield savings account could be another good option for you.

More from Your Money

Although you can earn a higher APY through some of the CDs offered at Capital One, the high-yield savings account gives you greater flexibility. While you can lock in your CD rate for an extended period of time, you might prefer the flexibility of a savings account.

Are Capital One CDs Right for You?

Capital One 360 CDs are best for those looking for no minimum deposit requirement and CDs with a more flexible and approachable option for you as the saver. Not having to save up a lump sum before you open a Capital One 360 CD account can help get you on the right financial track much sooner. With these CD accounts, interest is accrued daily and compounded monthly, and the monthly interest is distributed throughout the CD term until it reaches maturity.

Pros

  • No minimum deposit requirements
  • 10-day grace period for penalty-free withdrawal
  • Higher rates than the national average
  • Daily compounding schedule

Cons

  • Relatively high penalties for early withdrawal
  • Potentially lower returns than other investments such as stocks or bonds

Final Take

Though Capital One has some physical branches and Capital One Café locations, it is largely considered an online bank. If you are looking to start saving your money in a CD account, Capital One 360 CDs are definitely worth exploring. These CD accounts are a safe and consistent way to both save and grow your money.

More from Your Money

Besides a variety of credit card options and multiple services under Capital One’s 360 accounts umbrella, you may be surprised to find just how many personal finance and banking products the bank can offer you as well. Whether you are interested in deposit accounts or specifically opening a CD account, Capital One seems to have you covered all the way around.

FAQ

Here are the answers to some frequently asked questions regarding Capital One CD accounts.
  • Does Capital One have a 5% CD rate?
    • As of Oct. 4, 2023, Capital One offers two CDs with a 5% APY or higher:
      • The 12-month CD has an APY of 5.00%.
      • The 18-month CD has an APY of 5.25%
  • Which bank gives 7% interest on savings accounts?
    • Capital One does offer both a high-yield savings account and high-yield CDs; however, it does not offer 7% interest on any account. Traditional and online banks located in the United States do not currently offer 7% interest on savings accounts. If you do want to find a bank that offers this high rate, you would most likely have to look into overseas financial institutions.
  • Are Capital One CDs safe?
    • Yes, all Capital One CD accounts are FDIC-insured, which means your money is covered by up to $250,000.
  • What are Capital One's current CD rates?
    • Capital One's CD rates currently range between 4.10% and 5.25% APY.
  • What is Capital One's 12-month CD rate?
    • Capital One's 12-month CD has an APY of 5.00%.

Sarah Sharkey contributed to the reporting for this article.

Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Oct. 4, 2023.

Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.

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