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Capital One: 11-Month 360 CD Expired

5% APY
(No Minimum Deposit)
+444 Deal Score
451,990 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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Deal
Score
+444
451,990 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 Apr 2011
L3: Novice
> bubble2 1,199 Posts
530 Reputation
CompulsiveBuyer
02-03-2023 at 05:42 PM.
02-03-2023 at 05:42 PM.
Quote from chromyhomy :
I'm not convinced that is a full 5% as being advertised after the 11 months... The link here has an earnings calculator - https://www.capitalone.com/bank/c...-cd-rates/
It's showing as 4.57% not 5%? Am I missing something?
It's calculating for 11 months, not 12, since it's an 11-month CD. Results are correct.

Example: Enter $1000 and you'll get a result of $46

Go to the third-party interest calculator here: https://www.axosbank.com/Tools/Ca...Calculator

Enter $1000 for initial deposit, 4.89% for APR (results in 5.01% APY), 11 month term, compounded monthly, $0 monthly deposit. Result is $1045.75
Reply
Joined Dec 2013
L7: Teacher (far from it)
> bubble2 9,353 Posts
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Pro
doboy007
02-03-2023 at 05:43 PM.
02-03-2023 at 05:43 PM.
Quote from meetjasper :
Is it good idea to put 150K in CD?
sure why not if you want guaranteed money and it's pretty short at 11 mo?
Reply
Joined Feb 2021
L6: Expert
> bubble2 1,777 Posts
300 Reputation
nyc10036
02-03-2023 at 05:44 PM.
02-03-2023 at 05:44 PM.
Quote from Intranetusa :
What is the advantage of buying treasuries from brokerage sites VS directly from the treasury at their treasurydirect website?
Because a TreasuryDirect account is a pain in the butt to set up now according to some people.

I set mine up before all the 5+ years ago, but it is different now apparently with increased identity verification etc.

Reply
Joined Nov 2011
L2: Beginner
> bubble2 48 Posts
18 Reputation
TheDreamer
02-03-2023 at 05:47 PM.
02-03-2023 at 05:47 PM.
5% CD in 6.5% inflation time? No, thank you.
2
Reply
Joined Oct 2008
L9: Master
> bubble2 4,511 Posts
822 Reputation
warsaws
02-03-2023 at 05:50 PM.
02-03-2023 at 05:50 PM.
Quote from TheDreamer :
5% CD in 6.5% inflation time? No, thank you.
There's always one in every crowd…
1
Reply
Joined Jul 2008
You can call me "Al"
> bubble2 18,305 Posts
38,677 Reputation
MsGal
02-03-2023 at 05:56 PM.
02-03-2023 at 05:56 PM.
Quote from nld09 :
Invest in short term rental with condo.
Just not in Florida. We bought a small beach condo in 2021 and held it 14 months and then sold. We made 80k on the sale but that's not what motivated us to sell. The condo that collapsed in South Florida was tragic for everyone but the ripple effect will be felt by other condo owners FOREVER. We got a notice not long after purchase that starting in 2024 all condo HOA's in Florida will have to be fully funded in case of emergencies. Ours was not fully funded and after hurricane Sally hit, the assessments started. The previous owner got hit with 18k before closing and we got hit with 10k right after closing. Then they raised the HOA dues on us. Then told us there was ANOTHER assessment coming for 2k per tenant.

Anyway, that's why we got out when we did. Real estate can be a great investment as long as you do your research. We did our research but the rules changed AFTER we bought.
Reply
Joined Nov 2010
L4: Apprentice
> bubble2 456 Posts
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meetjasper
02-03-2023 at 06:17 PM.
02-03-2023 at 06:17 PM.
Quote from doboy007 :
sure why not if you want guaranteed money and it's pretty short at 11 mo?
Thanks. Smilie
Reply

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Joined Nov 2010
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> bubble2 456 Posts
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meetjasper
02-03-2023 at 06:19 PM.
02-03-2023 at 06:19 PM.
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.
What is JEPI? Is this any other stock based? I dont want to risk in this market.
Reply
Joined Apr 2006
L3: Novice
> bubble2 156 Posts
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thinredline
02-03-2023 at 06:44 PM.
02-03-2023 at 06:44 PM.
How about IvyBank's Index Saving Account? Currently 4.71% APY with $2500 min deposit. The rate will be reviewed each month on treasury yield. I am just not sure about this bank since the reviews are not very consistent.
Reply
Joined Jun 2019
New User
> bubble2 14 Posts
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HandsomeT
02-03-2023 at 07:10 PM.
02-03-2023 at 07:10 PM.
Quote from plflorence :
Can you give some examples how we can find these treasuries? Thanks!
I go through my stockbroker (Etrade, now part of Morgan Stanley) to buy treasury bonds with no commission.
Reply
Joined Jan 2007
L9: Master
> bubble2 4,169 Posts
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geoffkin
02-03-2023 at 07:19 PM.
02-03-2023 at 07:19 PM.
Quote from TheDreamer :
5% CD in 6.5% inflation time? No, thank you.
says the guy with $900 'saved up' LOL
Reply
Joined Sep 2003
L5: Journeyman
> bubble2 685 Posts
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axman
02-03-2023 at 07:24 PM.
02-03-2023 at 07:24 PM.
current 3 month CD is around 4.5%.
Reply
Joined Feb 2021
L6: Expert
> bubble2 1,777 Posts
300 Reputation
nyc10036
02-03-2023 at 07:36 PM.
02-03-2023 at 07:36 PM.
Quote from meetjasper :
What is JEPI? Is this any other stock based? I dont want to risk in this market.
It is an ETF that buys stocks that pay dividends.
Reply
Joined May 2012
L3: Novice
> bubble2 268 Posts
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MasalaWala
02-03-2023 at 07:41 PM.
02-03-2023 at 07:41 PM.
Quote from chromyhomy :
i'm not convinced that is a full 5% as being advertised after the 11 months..he link here has an earnings calculator - https://www.capitalone.com/bank/c...-cd-rates/
it's showing as 4.57% not 5%m i missing something?
(11/12)*5 = 4.57
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Joined Jul 2006
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> bubble2 1,217 Posts
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PrincipalMember
02-03-2023 at 08:03 PM.
02-03-2023 at 08:03 PM.
Quote from geoffkin :
says the guy with $900 'saved up' LOL
You forgot quite a few zeroes after 900. 😀

He makes a valid point and his risk potential may be higher. 30+ years ago I walked into Prudential for a broker CD. The Prudential was pitching me to invest in stocks. I was a lot younger - all I could see was the safety and fixed interest rates. Now I have zero CD's - my investments are a lot more complicated and overall have done lot better than CD's. So don't just LOL just because you have your blinders on.
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