Thu. May 19th, 2022
Capital One pays better CD rates than brick-and-mortar banks, with no minimum deposits

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Capital One CD rates

Capital One pays significantly higher rates than what you’ll earn with brick-and-mortar banks, especially for long-term CDs.

Capital One is one of the few banks that doesn’t require any minimum deposit, so you can open a CD regardless of how much money you have.

The bank charges low-to-standard penalties for withdrawing funds before your CD matures. You’ll pay 3 months interest for a term of 1 year or less, and 6 months interest for a term of more than a year.

How Capital One CD rates compare with competitors

We compared Capital One CD rates with two other


online banks

known for paying high rates: Ally and Marcus by Goldman Sachs.

Capital One CD rates vs. Ally CD rates

Both banks are among the few that let you open a CD with no minimum deposit.

Ally also has an 11-month No Penalty CD and a 2-year or 4-year Raise Your Rate CD. The latter gives you the option to increase your rate should Ally’s rates go up during your term — once during the two-year term, and twice during the 4-year term.

Capital One CD rates vs. Marcus CD rates

Marcus pays similar CD rates than Capital One. But Marcus requires $500 to open a CD, so if you don’t have that much cash ready, Capital One is the clear choice.

There is also a Marcus No-Penalty CD with 7-month, 11-month, and 13-month terms.

Laura Grace Tarpley, CEPF

Personal Finance Reviews Editor

Laura Grace Tarpley is a personal finance reviews editor at Insider. She edits articles about mortgage rates, refinance rates, lenders, bank accounts, and borrowing and savings tips for Personal Finance Insider. She is also a Certified Educator in Personal Finance (CEPF).
She has written about personal finance for six years. Before joining the Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU. You can reach Laura Grace at ltarpley@insider.com.
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