Most people think of credit cards when they hear Capital One – especially recently with the popular Alec Baldwin commercials, but they actually offer a plethora of products on the savings and checking side of banking as well. In our coverage of Capital One’s CD rates this month, however, you’ll find that these particular products are far from popular (see our table below for Capital One’s current certificate of deposit rates.)
[Interested in a new checking account? Capital One's "360" Checking comes with a $50 sign-up bonus!]
About Capital One:
Based out of Virginia, Capital One is the 28th largest bank in the United States and is relatively new when compared to the nation’s other well known banking institutions. After being founded in 1994, it has since grown to employee roughly 8,777 people while controlling roughly $70.51 billion in assets as well as originating over $53 billion in loans.
Capital One’s savings account and CD rates (operating under the new Capital One “360″ brand) while a step up from the likes of Bank of America, Wells Fargo, CitiBank and Chase are still much lower than national averages and drastically lower than the CD rates you can find from online banks and, on occasion, local credit unions. Capital One’s deposit products also feature a higher minimum deposit requirement than most other banks we survey. The current minimum deposit requirement is $5,000.
Capital One “360″ Bank CD Rates 2013:
(Rates accurate as of March 2013. Note – These rates are still accurate even though Capital One has not updated them since October 2012.)
Capital One Bank’s Growth and Overall Health:
Capital One has seen significant deposit growth over the last few years despite declining interest rates throughout the industry. During the last year Capital One increased its deposits by roughly 34% or $9.4 billion. They also recently released news of their $9 billion dollar deal to acquire ING Direct USA. This will be the largest acquisition Capital One has ever conducted. With the deal, Capital One’s online banking business will grow to the tune of 3x its current size to $109 billion (adding $80 billion in deposits from ING Direct). They will also gain 7 million customers from ING in the deal.
Interest Income: $4.3 billion
Return on Equity: 41%
Return on Assets: 3.85%
Net Interest Margin: 11.45%