Capital One's CD Offerings

Capital One does offer certificates of deposit (CDs), but only through its online banking division, Capital One 360. You cannot open a CD at a physical Capital One bank branch — the product is available exclusively to online customers.

Capital One 360 CDs are held in a separate account from your checking or savings account. The bank sets the interest rate and term length at the time you open the CD, and that rate stays fixed for the entire term. When your CD matures, Capital One will either return your money plus interest to your linked savings account, or you can choose to renew it into a new CD.

Capital One 360 is a subsidiary of Capital One Financial Corporation, but it operates as a standalone online bank. If you already have a Capital One credit card or a checking account at a physical Capital One branch, you would need to open a separate Capital One 360 account to purchase a CD.

Key Takeaways

  • Capital One 360 offers CDs with terms ranging from three months to five years, though the exact terms and rates change based on market conditions.
  • You must open a Capital One 360 account to buy a CD; physical Capital One bank branches do not sell CDs.
  • Capital One 360 CDs are FDIC-insured up to $250,000 per depositor, the same as any other bank CD.
  • Early withdrawal from a Capital One 360 CD results in a penalty that reduces your earnings, so confirm the penalty amount before opening the account.

Current CD Terms and Rates at Capital One 360

Capital One 360 typically offers CDs in terms of three months, six months, one year, two years, three years, and five years. The interest rate you receive depends on which term you choose and the current rate environment — rates change frequently and vary by term length.

To see the current rates and terms, you must visit the Capital One 360 website directly. Rates are not published in advance and shift as market conditions change. You can compare the rates Capital One 360 offers against other online banks to determine whether they fit your savings strategy.

When you open a CD, the rate is locked in for the entire term. If rates rise after you open your CD, your rate does not change. If rates fall, your rate stays the same — you are protected from rate decreases.

How to Open a Capital One 360 CD

To open a Capital One 360 CD, you first need a Capital One 360 savings account. If you do not already have one, you can create an account online by providing your name, address, Social Security number, and initial deposit. The process takes about 10 minutes.

Once your savings account is open and funded, you can open a CD through the Capital One 360 website or mobile app. You choose the term length and deposit amount, and the CD opens immediately. Your money is transferred from your savings account to the CD account, and interest begins accruing right away.

You do not need to visit a branch or speak to a representative. The entire process is self-service online.

Early Withdrawal Penalties and What Happens at Maturity

Capital One 360 charges a penalty if you withdraw money from your CD before the maturity date. The penalty amount depends on the term length — longer-term CDs typically have larger penalties. You should check the specific penalty for the term you are considering before you open the account, because the penalty reduces your interest earnings.

When your CD reaches maturity, Capital One 360 will automatically move your principal plus interest back to your linked savings account within one to two business days. You can then withdraw the money, spend it, or open a new CD. If you do nothing, the bank does not automatically renew your CD — your money sits in your savings account earning the savings account rate instead.

FDIC Insurance and Safety

Capital One 360 CDs are FDIC-insured up to $250,000 per depositor, per account category. This means if Capital One 360 fails, the Federal Deposit Insurance Corporation will reimburse you for your CD balance up to that limit.

If you have multiple CDs at Capital One 360, they are added together for insurance purposes. If you have a savings account and a CD at the same bank, they are counted separately — the savings account is insured up to $250,000 and the CD is insured up to $250,000.

Capital One 360 is a legitimate FDIC-member bank and has been operating since 1998. Your deposits are as safe as they would be at any other bank.

How Capital One 360 CDs Compare to Other Online Banks

Capital One 360 is one of many online banks that offer CDs. Other major online banks include Ally Bank, Marcus by Goldman Sachs, American Express Personal Savings, and Discover Bank. Each bank sets its own rates and terms, so the best choice depends on which bank offers the rate and term that match your savings goal.

Capital One 360 also offers a savings account, money market account, and checking account, so if you already use Capital One 360 for other banking needs, opening a CD there keeps everything in one place. However, that convenience should not be the only factor — if another bank offers a significantly higher rate for the term you want, that difference compounds over time.

When comparing CDs across banks, look at the annual percentage yield (APY) for the specific term you are interested in, not just the headline rate. A CD with a slightly lower rate but no early withdrawal penalty might be a better fit than one with a high rate but a steep penalty.

Frequently Asked Questions

Can I open a Capital One 360 CD at a physical Capital One branch?

No. Capital One 360 is an online-only bank, and physical Capital One branches do not sell CDs. You must open your account and purchase the CD online through the Capital One 360 website or mobile app.

What happens if I need my money before the CD matures?

You can withdraw your money early, but Capital One 360 will charge a penalty that reduces your interest earnings. The penalty amount depends on the CD term. Before opening a CD, confirm the penalty so you understand the cost of early withdrawal.

Is my money safe in a Capital One 360 CD?

Yes. Capital One 360 CDs are FDIC-insured up to $250,000, which means your deposit is protected by federal insurance if the bank fails. Capital One 360 is a legitimate, established bank that has been operating for over 25 years.

Can I renew my CD automatically when it matures?

Capital One 360 does not automatically renew CDs. When your CD matures, your money moves to your savings account. You can then open a new CD if you want, but you must do so manually — the bank will not roll it over for you.

How often do Capital One 360 CD rates change?

Capital One 360 changes its CD rates frequently in response to market conditions. Rates can shift weekly or even daily. Once you open a CD, your rate is locked in for the entire term and does not change, regardless of what happens to market rates.