Capital One CD Rates

Compared to all banks (including online banks and traditional banks), Capital One CDs offer competitive APY rates, no minimum deposits and quick access to interest earnings with no penalties.

1Y APY
0.20%
3Y APY
0.30%
Min. Deposit
$0
SimpleScore
3.6 / 5.0
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SimpleScore Capital One 3.6
1Y APY 2
3Y APY 3
Customer Satisfaction 3
Support 5
Minimum Deposit 5

In July of 1994, the U.S saw the birth of banking and credit card giant Capital One in Richmond, Virginia. Today, the bank continues to operate out of Virginia and has assets totaling over $390 billion and offers a wide variety of online banking products. One of the most attractive products the company offers is its certificates of deposit (CDs).

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In this article

    Capital One at a glance

    Bank Minimum Deposit 1-Year APY 3-Year APY Penalty
    Capital One$00.50%0.80%90 days of interest on 12-month CDs; 180 days of interest on 36-month CDs

    What we like about Capital One

    There’s a lot to like about Capital One CD rates. First, and arguably the most important, is the attractive APY rates at or over the 1% mark for all CDs a year or more in terms of length. This includes the ever-popular Capital One 360 CD with a current APY rate of 0.90% for four years. Second, unlike at many traditional banks, there is a $0 account minimum to open a Capital One CD. This means that even the newest or smallest of investors can cash in on these great rates.

    Additionally, early withdrawal penalties are much lower than the industry, especially on longer CD investments. While this hopefully won’t matter to anyone, it’s good to know you can keep more of your earnings if you have a sudden need to access your funds before the maturity date.

    Things to consider

    Probably the biggest drawback of investing in a Capital One CD is that you won’t have access to the face-to-face personal service you get through traditional banks. CD investments are very straightforward; however, some people just enjoy handling these types of investments in person. However, Capital One does offer extensive customer service options, but the company does not have branch locations.

    What you need to know

    Capital One CD rates are available with term lengths from six months out to 60 months. Compared to the industry, both ends of the spectrum are shortened. Other banks will let you get CDs as short as one month and as far out as 120 months. APY rates start at 0.25% for six-month CDs, peak at 1.00% for 60-month CDs. Compared to all other banks, this is on pace with the industry leaders.

    One aspect that is different from many other banks is Capital One does not show any favoritism to investors with more money to invest. The same high rates are available whether you put in $1 or $100,000 into your CD.

    There are no fees or penalties other than the early withdrawal penalty for opening or maintaining a Capital One CD. There is also no requirement to be an existing Capital One customer to gain access to the CD investments.

    Early withdrawal penalties

    Ideally, you’ll invest in a CD and never need to touch your money until maturity. However, if you do have to access it, you will incur a penalty no matter what bank or credit union you have the CD through. The penalties are not always the same, though. Capital One has some of the lowest early withdrawal penalties in the industry, especially on longer-term CDs.

    For Capital One CDs less than or equal to a year, the maximum penalty is 90 days of interest. For any CD longer than a year, the maximum penalty is 180 days of interest. Most other banks have a third tier of penalties carrying a maximum of 365 days of interest but not with Capital One.

    For example, if you take out a 60-month CD (five years) and have to withdraw your money after 48 months (four years), you will only be penalized up to 180 days of interest. Your principal will be untouched, and you will still walk away with a hefty portion of your interest earnings. Most other banks would charge you 365 days of interest for this.

    Other CD products

    Currently, Capital One only has one type of CD you can use as a standard investment or include in your traditional or Roth IRA accounts. All APY rates are based solely on term length, and there are no additional perks for investors bringing larger dollar amounts to the table.

    Rate guarantees

    As of now, Capital One doesn’t have any specialty rate guarantees attached to its CD products. However, whatever rate you secure when you open your account is locked in for the full term of the CD. Capital One cannot change the rate for any reason as the APY is guaranteed with a certificate of deposit.

    How do I pick the best CD?

    The first action you need to take before picking the best CD is to check off the necessity boxes. Find a CD that is FDIC or NCUA insured providing the term lengths you’re looking for and a minimum deposit fitting your financial plan. From there, compare the CDs based on APY rates to find where you can make the most money on your investments.

    If you are worried you may need to access your funds early, consider looking at the early withdrawal penalties. If you’re more than likely going to need to access your money early, you may want to look into a savings account that’s more liquid instead of a CD.

    Compare top bank accounts

    We welcome your feedback on this article and would love to hear about your experience with the checking accounts we recommend. Contact us at inquiries@thesimpledollar.com with comments or questions.

    Methodology

    SimpleScore

    The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.

    For every review, our editorial team:

    • Identifies five measurable aspects to compare across each brand
    • Determines the rating criteria for each aspect score
    • Averages the five aspect scores to produce a single SimpleScore

    Here’s a breakdown of the five aspect scores and their rating criteria for our review of the best CDs of 2020.

    Why do some brands have different SimpleScores on different pages?

    To ensure the SimpleScore is as helpful and accurate as possible, we developed unique criteria for every category we compare at The Simple Dollar. Since most brands offer a variety of financial solutions, their products and services will score differently depending on what we’re scoring on a given page.

    However, it’s possible for brands to have multiple SimpleScores. For instance, if we compare CDs offered by Discover, it scores a 3.75 out of 5 SimpleScore according to our metrics and rating system. But if we review Discover’s savings account according to our SimpleScore, it scores a 4.5 out of 5. We adjust our rating system to account for different products and industry standards.

    Questions about our methodology?

    Email Hayley Armstrong at hayley@thesimpledollar.com.

    12-month APY

    We awarded brands that offered higher APYs on 12-month certificates of deposit — the higher the APY, the higher the score.

    3-year APY

    We awarded brands that offered higher APYs on 3-year CDs — the higher the APY, the higher the score.

    Customer satisfaction

    We leveraged J.D. Power’s 2020 U.S. Retail Banking Satisfaction Study and 2020 U.S. Direct Banking Satisfaction Study to rate each brand for customer satisfaction. The higher the satisfaction score, the higher the SimpleScore.

    Minimum deposit

    Some providers require a minimum deposit to open a CD. We rated and rewarded brands that required low minimum deposits with higher scores.

    Customer support

    Providers with multiple channels of customer support were rewarded with higher scores in this aspect. We considered social media, mobile app support, in-branch support, phone and email as channels of support for customers.

    Jason Lee

    Contributing Writer

    Jason Lee is a U.S.-based freelance writer with a passion for writing about dating, banking, tech, personal growth, food and personal finance. As a business owner, relationship strategist, and officer in the U.S. military, Jason enjoys sharing his unique knowledge base and skill sets with the rest of the world. Follow Jason on Facebook here

    Reviewed by

    • Sean Jackson
      Sean Jackson
      Contributing Writer

      Sean Jackson is a creative copywriter living in Florida. He’s had work published with Realtor.com, theScore, ESPN and the San Francisco Chronicle. In his free time, Sean likes to play drums, fail miserably at improv and spend time at the beach.