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Capital One: 11-Month 360 CD Expired

5% APY
(No Minimum Deposit)
+444 Deal Score
449,599 Views
Update: this extremely popular deal is still available.

Capital One is offering a 11-Month 360 Certificate of Deposit at 5% APY with no minimum deposit.

Thanks to Community Member ginger_ale for finding this deal.

Original Post

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Edited February 24, 2023 at 12:11 AM by
No minimum balance required.

Expires 3/15/23

https://www.capitalone.com/bank/cds/online-cds/

Full CD Disclosure

https://www.capitalone.com/bank/d...nline-cds/
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+444
449,599 Views
5% APY
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So I started to ladder T-Bills for the reasons everyone is stating in this thread. The rate is so volatile (in a good way) that locking into anything even 12 months is too long for me and rates continue to climb. I use fidelity and my suggestion is this.

When they offer the new 4 week and 8 week and 13 week t-bill (they auction on diff days and diff weeks) go in and buy one of each of them with whatever money you can spare. Let's use 5k for each.

I would buy a 4 week t-bill with NO Rollover for 5k
I would buy an 8 week t-bill with NO Rollover for 5k
I would buy a 13 week t-bill WITH Rollover for 5k

Then after 4 weeks when that first on comes up, buy another 13 week t-bill with the 5k WITH Rollover.
Then after 8 weeks when the second comes up, buy another 13 week t-bill with the 5k WITH Rollover.

Now you will have 3 13 week t-bills rolling every 4 weeks or so and rolling into a new one with the proceeds. This way every 4 weeks you are capturing an increasing rate and not locked into anything longer than 13 weeks. You benefit from the rate hikes, can cash out at any time, and you have state tax shelter from the earned interest.

I can almost guarantee that the above will yield you more net income (taking in tax break) at the end of 11months then the 5% locked CD

just my 2cents
You can buy treasuries from just about any brokerage. I use Fidelity, as I like their platform and they don't charge fees/commissions for treasuries.
Fidelity Fixed Income Page [fidelity.com]
Follow the above link and scroll down to the row "U.S. Treasury." Choose the duration you want and click on it. You can then click "buy" to start a trade of a specific treasury bill/bond.
Fidelity's Intro to Treasuries [fidelity.com]
This is true, but it doesn't make an 11-month CD at 5% a bad idea. Those HYS can change their rates at any time, but here you're guaranteed to get 5%.

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Joined Jun 2014
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BabyDoll415
02-02-2023 at 11:13 AM.
02-02-2023 at 11:13 AM.
Quote from TurtlePerson2 :
I'll just give my usual plug about how treasuries aren't taxed by state and local taxes, which might make them a better investment for you. Additionally, they're more liquid than CDs.

At 5%, you'd need to have a ~10% local/state income tax for treasuries to be better for you. This 5% rate is a pretty good deal.
Examples of treasuries with minimal downside?
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Joined Jan 2020
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CalmSardine
02-02-2023 at 11:15 AM.
02-02-2023 at 11:15 AM.
Anyone heard if capital one is planning on raising savings rates again after the fed increase?
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Joined Nov 2014
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TurtlePerson2
02-02-2023 at 11:15 AM.

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02-02-2023 at 11:15 AM.
Quote from plflorence :
Can you give some examples how we can find these treasuries? Thanks!
You can buy treasuries from just about any brokerage. I use Fidelity, as I like their platform and they don't charge fees/commissions for treasuries.
Fidelity Fixed Income Page [fidelity.com]
Follow the above link and scroll down to the row "U.S. Treasury." Choose the duration you want and click on it. You can then click "buy" to start a trade of a specific treasury bill/bond.
Fidelity's Intro to Treasuries [fidelity.com]
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Joined Jan 2009
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LanceTX
02-02-2023 at 11:17 AM.
02-02-2023 at 11:17 AM.
Quote from CalmSardine :
Anyone heard if capital one is planning on raising savings rates again after the fed increase?
They just raised their savings rate yesterday to 3.4%. Only a 10bps increase.
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Joined Nov 2014
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TurtlePerson2
02-02-2023 at 11:20 AM.

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02-02-2023 at 11:20 AM.
Quote from BabyDoll415 :
Examples of treasuries with minimal downside?
Sure. 3 month treasuries are yielding 4.65% right now. If interest rates jumped 1% overnight (absolutely crazy, has never happened), then your treasury would be worth about 0.3% less on the secondary market. If you had held it for at least a couple of weeks, then you'd be about even. Generally speaking, any treasury with a term of 12 months or less has little chance of ever dropping below what you paid for it, and even then only within the first few weeks of holding it.
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Joined Oct 2006
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desitoyota
02-02-2023 at 11:28 AM.
02-02-2023 at 11:28 AM.
Quote from low_ball_88 :
Another option is JPMorgan Equity Premium Income ETF (JEPI). Yield is 11.68%. No guaranteed that it could sustain the yield nor ETF price decline.

Plus secured with FDIC
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sssjun
02-02-2023 at 11:48 AM.
02-02-2023 at 11:48 AM.
Quote from plflorence :
Can you give some examples how we can find these treasuries? Thanks!

Search "t-bills" on google and youtube
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Joined Jan 2011
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briank642
02-02-2023 at 11:52 AM.
02-02-2023 at 11:52 AM.
Quote from low_ball_88 :
Another option is JPMorgan Equity Premium Income ETF (JEPI). Yield is 11.68%. No guaranteed that it could sustain the yield nor ETF price decline.
Comparing an Equity ETF to a CD isn't exactly apples to apples.
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George_P_Burdell
02-02-2023 at 12:15 PM.
02-02-2023 at 12:15 PM.
Quote from TurtlePerson2 :
This is true, but it doesn't make an 11-month CD at 5% a bad idea. Those HYS can change their rates at any time, but here you're guaranteed to get 5%.
I don't forsee honestly sub 5% for the year. CDs don't give you upward protection. I would say at best it's a wash but I do have 5% apy CD at NFCU so nothing against CDs here. Just saying you may get better rates on next CD too
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Joined Nov 2013
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UT07
02-02-2023 at 12:25 PM.
02-02-2023 at 12:25 PM.
Quote from George_P_Burdell :
There are savings account that's gives 5% apy

Sure, at mom and pop's no name house of banking. Also, what do you think will happen the second the Fed lowers rates?? Mom and pop will do the same. This CD locks you into 5% for 11 months.
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Joined Jul 2019
Lil Jimmy,Bng 9er Gng
> bubble2 3,694 Posts
94c107ea-869c-45a5-becd-c6b552
02-02-2023 at 12:26 PM.
02-02-2023 at 12:26 PM.
Quote from junkdealer :
In this market most likely go up rather than down though

Doubtful. Fed only hiked 25bp yesterday.
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Joined Jan 2015
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iamaustin
02-02-2023 at 12:26 PM.
02-02-2023 at 12:26 PM.
Quote from TurtlePerson2 :
You can buy treasuries from just about any brokerage. I use Fidelity, as I like their platform and they don't charge fees/commissions for treasuries.
Fidelity Fixed Income Page [fidelity.com]
Follow the above link and scroll down to the row "U.S. Treasury." Choose the duration you want and click on it. You can then click "buy" to start a trade of a specific treasury bill/bond.
Fidelity's Intro to Treasuries [fidelity.com]
The government can default on these? And is set to do so if congress doesn't pass any legislation increasing the debt ceiling?
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Joined Jul 2019
Lil Jimmy,Bng 9er Gng
> bubble2 3,694 Posts
94c107ea-869c-45a5-becd-c6b552
02-02-2023 at 12:27 PM.
02-02-2023 at 12:27 PM.
Quote from George_P_Burdell :
I don't forsee honestly sub 5% for the year. CDs don't give you upward protection. I would say at best it's a wash but I do have 5% apy CD at NFCU so nothing against CDs here. Just saying you may get better rates on next CD too

5.25 NFCU here. A bird in the hand is worth two in the bush.
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