Capital One CD Rates 2024: How They Compare - NerdWallet (2024)

FAQs

How high will CD rates go in 2024? ›

Key takeaways. The national average rate for one-year CD rates will be at 1.15 percent APY by the end of 2024, McBride forecasts, while predicting top-yielding one-year CDs to pay a significantly higher rate of 4.25 percent APY at that time.

Are Capital One CDs safe? Yes. As at most banks, funds saved in a CD at Capital One are insured by the Federal Deposit Insurance Corp., up to $250,000 per account.

Currently, a 10-month CD offers 5.10% APY. Capital One yields are more competitive than many big banks, though several online banks offer similar rates. Capital One has no minimum deposit requirements, so you can fund your CD with the amount that suits your needs.

As of January 23, 2024, all current Capital One CD rates stand above 4%, with the 14-month CD topping the list at 5.10%. Capital One's one-year CD at 5.00% APY is also well ahead of the national average for a one-year CD, which is 1.86% as of January 16, 2024.

You can find 6% CD rates at a few financial institutions, but chances are those rates are only available on CDs with maturities of 12 months or less. Financial institutions offer high rates to compete for business, but they don't want to pay customers ultra-high rates over many years.

The bottom line

Overall, long-term CDs could be a good investment for those who want to lock in guaranteed returns at a relatively high rate in early 2024. But as the year progresses, if interest rates fall as expected, then long-term CDs could lose some of their appeal.

Capital One 360 CDs offer great rates without the burden of meeting deposit requirements. Because their APYs are respectable even for low deposit amounts, they're a great choice for savers who are just starting out with CDs or for people who want to build a CD ladder.

This is made easier with the bank's extensive online and mobile app features. They allow you to easily check on your accounts and make transactions. You can open up to 50 CDs at once with Capital One and you can access them all online and on mobile.

Which bank gives 7% interest on savings account? ›

As of April 2024, no banks are offering 7% interest rates on savings accounts. Two credit unions have high-interest checking accounts: Landmark Credit Union Premium Checking with 7.50% APY and OnPath Credit Union High Yield Checking with 7.00% APY.

Capital One CDs: At a glance

There's a period of 10 days after your CD matures to decide whether to withdraw your money and put it in another account, withdraw your money and open a different CD or allow your CD to renew under current rates.

Capital One 360 certificates of deposit offer a safe way to grow your savings with some competitive interest rates that range from 3.90% to 5.10% APY (annual percentage yield), depending on the CD term you choose.

The big difference between a CD account and a savings account is accessibility. With a Capital One 360 Performance Savings Account, you could make withdrawals any time you want. With CD accounts, you generally can't withdraw money before maturity, or you'll face a CD early withdrawal penalty.

Key takeaways. Interest earned on CDs is considered taxable income by the IRS, regardless of whether the money is received in cash or reinvested. Interest earned on CDs with terms longer than one year must be reported and taxed every year, even if the CD cannot be cashed in until maturity.

"Shorter CD rates won't collapse and will still offer far higher yields than the ones we experienced in 2021 and prior years," Krumpelman says. "Even in 2025, we expect short CDs to pay more than 3%."

The expected decreasing inflationary pressure, plus the added impact of a falling federal funds rate in 2024, is likely to push mortgage rates lower. But while the Fed raised its benchmark rate fast in 2022–2023, it's expected to bring rates down at a much more gradual pace in 2024 and beyond.