Capital One CD Rates (May 2024)

The Capital One 360 CD account has 10 term options ranging from six months to five years, but the available options may change. Unlike competitors like Ally and Bank of America, Capital One doesn’t have more flexible options such as no-penalty or bump-up CDs.

The APY you get on a Capital One 360 CD is in the range of 4% and 5% and varies by term length. The rate is fixed, unlike with a traditional savings account. This allows you to lock in a high rate and be certain of how much interest you’ll earn over the term.

You get the bank’s top CD rates when you choose a 12- or 18-month term. Capital One pays the lowest rates for its longest term options, four and five years.

The bank offers a rate-lock guarantee that lets you take advantage of an APY increase that occurs within 10 days of your application date for the CD account. You’ll need to complete the account funding process during that time frame to qualify. That said, the bank doesn’t have flexible options such as bump-up or add-on CDs.

Capital One CD Rates vs. Other Top Banks

>> Related: Learn more about the current best CD rates

Below are important details about choosing, opening and using a Capital One 360 CD. You’ll also learn about account requirements, penalties and interest payments.

CD Account Requirements

Capital One 360 CDs don’t require a minimum opening deposit and don’t have a minimum balance requirement. You can’t make additional deposits after you fund your account. There are no ongoing fees.

You can invest up to $1 million in a single CD, but Federal Deposit Insurance Corp. coverage only applies to a maximum of $250,000 (for each depositor and account ownership category) across your Capital One deposit accounts.

Range of CD Terms

As shown in the rate table above, Capital One offers 10 short- to long-term CD options. To choose the right one, consider your desired interest rate and how soon you think you’ll need to withdraw the money.

A medium CD term length is a good option for money you’ll need two or three years from now, and you can still get a competitive rate. The CDs with the longest terms are the least flexible and competitive, but they may sometimes work for financial goals that are several years away.

Interest Compounding and Payment

Interest on your Capital One 360 CD balance will accrue every day, but the bank only compounds it once per month. Capital One also credits your earned interest each month. You get 20 days after opening the CD or reaching the maturity date to tell Capital One what you want it to do with the interest.

The default option is to add it to your CD’s balance, and this means your credited interest will earn interest as well. But if you want, you can ask the bank to transfer your interest to either a linked Capital One account or an external bank account.

Capital One CD Early Withdrawal Penalty

Capital One only allows full withdrawal of your CD’s principal, and it expects that you’ll wait until your CD term ends. You can request an early withdrawal if you need your money sooner, but you’ll typically pay a penalty:

• For CD terms of one year or less: Three months of interest
• For CD terms longer than one year: Six months of interest

If you haven’t earned enough interest to cover the penalty, you’ll likely have to pay it from your principal balance. The exception to being charged an early withdrawal penalty is if you’re within the 10-day grace period after an existing CD matures.

End-of-Term Options

When your Capital One 360 CD’s term ends, you get 10 days to decide what to do with your money. During that time, you can withdraw the balance without any penalty. This gives you the chance to spend the money, choose another CD or reinvest it in a different savings product.

Otherwise, Capital One renews the CD. It will have the original term unless you request something different. Additionally, the interest rate will be whatever Capital One offers at that time. Checking rates as your CD nears maturity can help you decide whether renewal is the best option financially.

How To Open a CD Account With Capital One

Capital One offers a convenient online CD application you can complete as long as you have a Social Security number and a U.S. mobile phone number. If you have an Individual Taxpayer Identification Number instead, you must visit a Capital One Café or branch to apply in person. You’ll also need to be 18 or older to open a CD account.

The online Capital One 360 CD application asks for the following information, some of which will be pre-filled if you log in to an existing account:

• Chosen CD term and rate
• Full name
• Email address
• Mobile phone number
• Home address (no P.O. boxes are accepted)
• Country of citizenship
• Employment status
• Job title
• Annual income
• Date of birth
• Social Security number
• Tax certification information

As you go through the application, you’ll need to agree to Capital One’s CD account terms and set your contact preferences. Capital One will also do an identity check and may ask for more information for verification.

At the end, the application prompts you to make your one-time deposit for the new CD. You’ll have to provide the account and routing numbers for another U.S. bank account along with the transfer amount. After the money transfers and Capital One approves the application, your CD will be opened and start earning interest.

You may submit additional applications if you want to create a CD ladder. After you finish, you can manage all of your CD accounts using the Capital One website and mobile app.

>> Related: Learn more about CD ladders

In addition to its CDs, Capital One offers the 360 Performance savings account, which has a variable APY that’s well over the national average for savings accounts. As an FDIC-insured high-yield savings account, this option is good for everyday savers since it allows for ongoing deposits and withdrawals. You also won’t have to worry about losing earned interest due to any early withdrawal penalties.

Like the CDs, Capital One’s savings account has no monthly fee, minimum deposit requirement or minimum balance requirement. The bank used to limit certain savings account transfers to six for each statement cycle, but it’s waiving that restriction for now. If limits return, Capital One will contact you.

You get some helpful features with a Capital One 360 Performance Savings account. You can open dedicated accounts for specific savings goals and set up an automatic savings plan with transfers from a linked account. You can conveniently deposit checks in the account with the Capital One app as well.

Capital One also offers a fee-free savings account for kids. While it has a lower rate than the bank’s high-yield savings account, it beats the national average.

Review our picks for the best savings accounts to compare Capital One to competitors.

>> Related: Learn more about the best high-yield savings account

A Capital One 360 CD could be a good choice when you want a competitive rate on a single deposit and plan to leave the money alone until the account matures. Since it has no minimum required deposit, it’s an accessible option regardless of how much you save. It also helps that the best rates are on CDs with relatively short commitments of 12 to 18 months.

But if you need more flexibility, you might consider competitors that offer CDs that allow for additional deposits or penalty-free withdrawals. You may also prefer the option to bump your interest rate up if the bank’s rates go up during your CD term. In that case, a Capital One 360 Performance savings account or a bump-up CD elsewhere may suit you better.

>> Related: Learn more in our Capital One review

*Data accurate at time of publication

Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.