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Capital One: 11-Month 360 CD Expired

5% APY
(No Minimum Deposit)
+444 Deal Score
449,583 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

Written by
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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Score
+444
449,583 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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> bubble2 18 Posts
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Generator515
02-02-2023 at 12:32 PM.
02-02-2023 at 12:32 PM.
Quote from iamaustin :
The government can default on these? And is set to do so if congress doesn't pass any legislation increasing the debt ceiling?
If that happens think we are all may have bigger issues than a t-bill defaulting.
Reply
Joined Nov 2020
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> bubble2 119 Posts
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LovelyBike5590
02-02-2023 at 12:33 PM.
02-02-2023 at 12:33 PM.
how much tax have to pay on the interest earned?
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Joined Nov 2020
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> bubble2 119 Posts
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LovelyBike5590
02-02-2023 at 12:33 PM.
02-02-2023 at 12:33 PM.
Is it better to have money in CD or savings account?
2
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Joined Aug 2009
L1: Learner
> bubble2 18 Posts
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tontot
02-02-2023 at 12:33 PM.
02-02-2023 at 12:33 PM.
Quote from iamaustin :
The government can default on these? And is set to do so if congress doesn't pass any legislation increasing the debt ceiling?
In that case you need can food and ammo, if US gov default
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> bubble2 2,286 Posts
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dualityofman
02-02-2023 at 12:39 PM.
02-02-2023 at 12:39 PM.
Quote from LovelyBike5590 :
Is it better to have money in CD or savings account?

Both.
Reply
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agarwalami
02-02-2023 at 12:39 PM.

Our community has rated this post as helpful. If you agree, why not thank agarwalami

02-02-2023 at 12:39 PM.
Wallet hub review of primis bank , read the comments on the page

https://wallethub.com/profile/primis-13005694i
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Joined Oct 2013
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tygron
02-02-2023 at 12:40 PM.

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02-02-2023 at 12:40 PM.
Quote from LovelyBike5590 :
how much tax have to pay on the interest earned?
Depends on what state you live in as well as what income tax bracket you find yourself in.

More info [investopedia.com]
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Joined Feb 2008
L3: Novice
> bubble2 154 Posts
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cheapviet
02-02-2023 at 12:41 PM.
02-02-2023 at 12:41 PM.
for those worried about missing rates if they increase, Marcus has a bump-up CD
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Joined Aug 2013
L3: Novice
> bubble2 266 Posts
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Milkcake81
02-02-2023 at 12:42 PM.
02-02-2023 at 12:42 PM.
Grace Period: You may redeem your Certificate of Deposit within ten (10) calendar days after the maturity date without penalty.

What happens if you don't redeem within 10 days?
Reply
Joined Jul 2020
L7: Teacher
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ThirstyCruz
02-02-2023 at 12:42 PM.
02-02-2023 at 12:42 PM.
Quote from CalmSardine :
Anyone heard if capital one is planning on raising savings rates again after the fed increase?

"after" when are they increasing? They just met and next time is march 21
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LovelyBike5590
02-02-2023 at 12:45 PM.
02-02-2023 at 12:45 PM.
Quote from dualityofman :
Both.

For savings account interest , no tax?
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SaltonUnsalted
02-02-2023 at 12:46 PM.
02-02-2023 at 12:46 PM.
I have existing Capital One accounts open and can't take advantage of this promo.
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Joined Jul 2007
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qwertyaas
02-02-2023 at 12:47 PM.
02-02-2023 at 12:47 PM.
Quote from SaltonUnsalted :
I have existing Capital One accounts open and can't take advantage of this promo.
It tried to add some FALL22 promo for me. Just click away and open a CD. It'll show 11M @ 5%.
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TurtlePerson2
02-02-2023 at 12:47 PM.

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02-02-2023 at 12:47 PM.
Quote from iamaustin :
The government can default on these? And is set to do so if congress doesn't pass any legislation increasing the debt ceiling?
If the federal government actually defaults on treasuries, then there are really much bigger problems for you to worry about, as any dollar-denominated assets would be put at risk. Keep in mind that the treasury can literally print additional money to make these payments. For all of the posturing that happens every year or two on the debt limit, no one in finance takes the threat of default seriously.
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