Capital One is well known for its various credit card options, checking and savings accounts. However, it also offers CD products.

After examining the different Capital One CD rates, we found that while they offer higher rates than most brick-and-mortar banks, some CDs are less competitive than other online banks.

There is one exception, though. The Capital One 12-month CD has a respectable 4.00% annual percentage yield (APY).

Many people love Capital One CDs because they can be opened with no minimum balance requirement and are backed by the Capital One brand.

Let’s take a closer look at the Capital One CD rates so you can decide if they will be a good fit for you.

Capital One CD Rates

Capital One 360 CD rates range up to 4.00%, and you can choose a CD term of six months to 60 months.

Here’s a closer look at the different online CDs available.

Capital One CD Features

Here’s a breakdown of features you’ll receive with Capital One CDs.

Competitive Rates: Capital One CD rates are highly competitive with many other banks. They have CD accounts with rates up to 4.00% APY.

No Minimum Balance: No minimum balance is required to open a Capital One 360 CD account. You could start with $10 or $10,000.

Interest Flexibility: You can choose to have your interest payments paid out at the end of the term, each month or at the end of the year.

Monthly Compounding Interest: Interest will compound monthly. You can either reinvest it in your CD or transfer it to a checking or savings account.

FDIC Insured: All Capital One CDs are insured by the FDIC, up to $250,000 per depositor.

Capital One CD Rates Pros and Cons

Pros of Capital One CD Rates

• Competitive Interest Rates: Capital One CDs have higher interest rates than the national average, including 4.00% APY on its 12-month CD.
• Wide Range of CD Terms: You can choose from CD terms ranging from six months to 60 months. This is great for someone looking to create a CD ladder.
• No Minimum Deposit: No minimum deposit is required to open a Capital One Bank CD.
• No Monthly Fees: Capital One 360 bank accounts, including CDs, do not have monthly maintenance fees.
• FDIC Insurance: All Capital One 360 products come with FDIC Insurance, up to $250,000.
• In-Person and Online Banking: Although Capital One is primarily an online bank, it offers in-person banking at branch locations and Capital One Cafés.

Cons of Capital One CD Rates

• No Specialty CDs: Capital One only offers traditional CDs. You won’t have access to penalty-free CDs or Bump-up CDs.
• Early Withdrawal Penalty: You will be penalized if you withdraw your funds before the maturity date. More details below.
• Automatic Renewal: At the end of the term, your CD will automatically renew unless you withdraw your funds during the 10-day grace period.

How Do Capital One Bank CD Rates Stack Up?

Do you want to compare the current Capital One CD rates to what else is available? Here are a few other options to consider. Plus, make sure you also check out the other Capital One 360 products, like the Capital One Checking account and Capital One Savings account.

How to Open a Capital One CD

You can open a Capital One 360 CD online if you are at least 18 years old, have a U.S.-based phone number and address, and have a Social Security number. However, you must visit a branch location to apply using an Individual Taxpayer Identification Number (ITIN).

Click the button below to open your CD account. Once you’ve opened it, you’ll need to fund it. You can do this by linking another Capital One account or an external bank account.

Once your account is open, it’s important to set a reminder for the maturity date. The CD will automatically renew unless you withdraw your funds during the 10-day grace period.

What are Capital One CD Early Withdrawal Penalties?

You’ll face an early withdrawal penalty if you withdraw your money before the CD’s maturity date. The penalty is determined based on your CD term.

What To Consider When Opening a CD?

Before opening a CD with any bank, it’s important to consider a few things:

CD rates are fixed: When you put your money in a CD, you know how much you will earn ahead of time. CDs have a fixed interest rate and come with guaranteed income. To understand how much you could earn, use our CD calculator and plug in the numbers.

You can’t make additional deposits: Once you’ve opened a CD, you cannot make additional deposits. 

CDs Auto-renew: Unless you withdraw your money during the grace period after the CD matures, it will be redeposited into a CD of the same term.

Most CDs advertise APY rather than the interest rate: Most banks promote their CDs based on their APY, which factors in compounding interest. We have a guide to help you understand APY vs. Interest Rates.

The Bottom Line

If you’re looking to open a CD account with a lot of brand awareness, consider Capital One. While they don’t have the highest annual percentage yield (APY) on all their CD terms, they do offer 4.00% on the 12-month CD.

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