Capital One 360 CDs offer a safe way to grow your savings with some competitive interest rates that range from 3.30% to 4.40% APY (annual percentage yield), depending on the CD term you choose. All of its CD terms—six months to five years—have a good feature for novel savers: no minimum balance requirements.
Inside this article
Overview of Capital One 360 CDs
While many certificates of deposit (CDs) have a minimum deposit amount, Capital One’s offerings don’t.This gives you the flexibility to start saving immediately, even if you don’t have a lot in the bank. Perhaps the positive feedback you receive from a decent yield will spur you on to save more later.
Additional flexibility comes from the variety of CD terms ranging from six to 60 months. However, there is a limit on how large your CD can be—$1,000,000.
| Minimum deposit | $0 |
| Term lengths | 6, 9, 12, 18, 24, 30, 36, 48 and 60 months |
| Compounding schedule | Monthly |
| Early withdrawal period | CDs with terms of 12 months or less: penalty of three months’ interest CDs with terms greater than 12 months: penalty of six months’ interest |
| Grace period for penalty-free withdrawals after maturity | 10 days |
How much can you earn with a Capital One 360 CD
The CD market is in flux thanks to the Federal Reserve raising interest rates to quash inflation, meaning you can find much higher rates now than you could have during most of the post-Great Recession era.
Whatever the APY though, the more you deposit into a CD and the longer you leave your money in it, the more you’ll earn. A long-term CD is a great way to make more from your money.
To illustrate, here are your potential earnings from Capital One 360 CDs for various CD terms if you made a $10,000 deposit. All rates are as of January 10.
| CD Term | APY | Earnings |
|---|---|---|
| 6 Months | 3.30% | $164 |
| 9 Months | 3.30% | $246 |
| 12 Months | 4.15% | $415 |
| 18 Months | 4.25% | $644 |
| 24 Months | 4.30% | $878 |
| 30 Months | 4.30% | $1,110 |
| 36 Months | 4.35% | $1,363 |
| 48 Months | 4.35% | $1,857 |
| 60 Months | 4.40% | $2,402 |
How Capital One 360 CDs compare
Compared to the national average data from the Federal Deposit Insurance Corporation (FDIC), the yields on Capital One 360 CDs are rich. However, a note before you celebrate—other top companies in the industry are often more competitive.
Synchrony Bank, which also has no required minimum deposit amount, has better short-term CD rates, and First Internet Bank, which has a $1,000 minimum, currently offers better APYs across the board.
| CD Term | National Deposit Rates | Capital One 360 CD Rates | Synchrony Bank CD Rates | First Internet Bank CD Rates |
|---|---|---|---|---|
| 6 month | 0.35 | 3.30% | 3.90% | 4.39% |
| 12 month | 1.07 | 4.15% | 4.30% | 4.75% |
| 24 month | 1.06 | 4.30% | 4.30% | 4.49% |
| 36 month | 1.02 | 4.35% | 4.30% | 4.44% |
| 48 month | 0.97 | 4.35% | 4.30% | 4.44% |
| 60 month | 1.09 | 4.40% | 4.30% | 4.39% |
As you compare CD terms and not just CD providers, you’ll notice that some rates peak at 12 months. That doesn’t mean you should discount longer-term CDs. Rates for multi-year CDs are still relatively elevated and you’ll earn more money on them over their longer terms.
For example, imagine you deposit $10,000 into two CDs. Both compound monthly. A one-year CD with a 4.75% APY would garner $485 while you’d earn almost double that ($938) with a two-year CD with an APY rate of 4.49%.
About Capital One Bank
Perhaps best known for its funny credit card ads, Capital One is a full-service, national bank with over $390 billion in total assets, making it the tenth largest bank in the nation. It has a robust variety of financial products, from checking and saving accounts to credit cards and auto loans. It was founded in 1994.