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Capital One: 11-Month 360 CD Expired

5% APY
(No Minimum Deposit)
+444 Deal Score
450,968 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
450,968 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 Jul 2018
L5: Journeyman
> bubble2 833 Posts
82 Reputation
Balayya_Fan
02-13-2023 at 08:45 AM.
02-13-2023 at 08:45 AM.
Quote from nyc10036 :
4-week T-bills currently have slightly lower interest than 13-week ones
That is not saying that will always be the case.
I got 4 week T-bill, how to sell after 4 week? will I get any notification?
Reply
Joined Feb 2021
L6: Expert
> bubble2 1,777 Posts
300 Reputation
nyc10036
02-13-2023 at 11:06 AM.
02-13-2023 at 11:06 AM.
Quote from Balayya_Fan :
I got 4 week T-bill, how to sell after 4 week? will I get any notification?
You don't sell it.
For Fidelity and Schwab, they send an email 3-4 weeks before it matures.
That is too early for me, so I have to put it in my calendar.

If you don't have Auto-Roll set, which is what I have, the T-bill goes into to the "cash" account.

Reply
Joined Oct 2006
L2: Beginner
> bubble2 86 Posts
557 Reputation
InsideJob
02-13-2023 at 11:06 AM.
02-13-2023 at 11:06 AM.
I got the 4, 8 and 13 week ladder through Schwab. Does anyone know how to see the annual rate I got? It has the purchase price so I can do the math on my own, but there has to be a better way. I can't imagine they would expect users to calculate it ourselves.
Reply
Joined Jul 2018
L5: Journeyman
> bubble2 833 Posts
82 Reputation
Balayya_Fan
02-13-2023 at 11:31 AM.
02-13-2023 at 11:31 AM.
Quote from nyc10036 :
You don't sell it.
For Fidelity and Schwab, they send an email 3-4 weeks before it matures.
That is too early for me, so I have to put it in my calendar.

If you don't have Auto-Roll set, which is what I have, the T-bill goes into to the "cash" account.
my T-bill are in E-trade so once it matures it will convert into cash in our account?
Reply
Joined Feb 2021
L6: Expert
> bubble2 1,777 Posts
300 Reputation
nyc10036
02-13-2023 at 11:42 AM.
02-13-2023 at 11:42 AM.
Quote from Balayya_Fan :
my T-bill are in E-trade so once it matures it will convert into cash in our account?
It should, but I don't know anything about eTrade.
Reply
Joined May 2017
New User
> bubble2 38 Posts
34 Reputation
python5
02-14-2023 at 10:03 AM.
02-14-2023 at 10:03 AM.
came back to this deal to see how it aged.

Not well. 14 days later the 6 month t-bill is over 5%
Reply
Joined May 2018
L6: Expert
> bubble2 1,374 Posts
219 Reputation
vaiof1
02-14-2023 at 10:09 AM.
02-14-2023 at 10:09 AM.
Quote from python5 :
came back to this deal to see how it aged.

Not well. 14 days later the 6 month t-bill is over 5%
what's the difference between high rate and investment rate?

26-Week 912796Z36 02/16/2023 08/17/2023 4.840% 5.030%
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Joined Nov 2019
L3: Novice
> bubble2 255 Posts
58 Reputation
GreenIdea3316
02-14-2023 at 11:01 AM.
02-14-2023 at 11:01 AM.
Quote from python5 :
came back to this deal to see how it aged.

Not well. 14 days later the 6 month t-bill is over 5%
yea, its not a good idea to lock up your money for 1 year when the FED is still raising rates and they are expected to go over 5%. Better to just buy T-Bills which have daily liquidity.
Reply
Joined Dec 2003
L5: Journeyman
> bubble2 696 Posts
27 Reputation
micro
02-14-2023 at 11:28 AM.
02-14-2023 at 11:28 AM.
I use Treasurydirect for T bills. If I use another broker like fidelity, are their rates better than going directly with the treasury?
Reply
Joined Jan 2010
L4: Apprentice
> bubble2 327 Posts
83 Reputation
svi12345
02-14-2023 at 12:40 PM.
02-14-2023 at 12:40 PM.
Quote from micro :
I use Treasurydirect for T bills. If I use another broker like fidelity, are their rates better than going directly with the treasury?

No they are the same rates as at Treasury Direct if you're buying new bills. Brokers also have a market for resold treasuries so if you're interested in that or possible selling your own Tbill before maturity, you might use a broker instead.
Reply
Joined Sep 2003
Worlds Most Modest Man
> bubble2 19,107 Posts
3,117 Reputation
beowulf7
02-14-2023 at 02:40 PM.
02-14-2023 at 02:40 PM.
Current Fixed Income, Bonds & CDs rates at Fidelity:
https://fixedincome.fidelity.com/.../FILanding
1
Reply
Last edited by beowulf7 February 14, 2023 at 02:42 PM.
Joined Dec 2010
L7: Teacher
> bubble2 2,604 Posts
1,834 Reputation
cubsoxbull
02-14-2023 at 03:03 PM.
02-14-2023 at 03:03 PM.
Does anyone know how long Capital One holds your money before they add the funds to the cd ? They took the money via ach, out of my non capital one account on Friday and doesn't show available yet.
Reply
Joined May 2010
L3: Novice
> bubble2 113 Posts
14 Reputation
master555
02-14-2023 at 03:17 PM.
02-14-2023 at 03:17 PM.
I have account Michigan bank how to transfer money to cd do I transfer to savings or checking first? My bank doesn't charge outgoing wire. Does capital one charges incoming wire?
Reply
Joined Dec 2010
L7: Teacher
> bubble2 2,604 Posts
1,834 Reputation
cubsoxbull
02-14-2023 at 03:23 PM.
02-14-2023 at 03:23 PM.
Quote from master555 :
I have account Michigan bank how to transfer money to cd do I transfer to savings or checking first? My bank doesn't charge outgoing wire. Does capital one charges incoming wire?
You need to open an account on Capital One, they will ask for the routing number and account# from your bank. Then they do a small deposit and you need to verify the amounts.
Reply

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Joined Feb 2021
L6: Expert
> bubble2 1,777 Posts
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nyc10036
02-14-2023 at 03:23 PM.
02-14-2023 at 03:23 PM.
Quote from master555 :
I have account Michigan bank how to transfer money to cd do I transfer to savings or checking first? My bank doesn't charge outgoing wire. Does capital one charges incoming wire?
You don't do wire transfers.
Most people do ACH transfers. Just open the CD and then you should get to the part where they ask you where the money is coming from. You'd link an external account for which you have routing and account numbers.

.
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