Capital One interest rate 0.8% anyone ?

[wanaberetiree]

My checking account at Capital One pays 0.8% api
I wonder why is it so high.
Anyone has a clue ?

 

[harley]

Since it's down from 1.5% since May when I signed up I don't really consider it that high. There are many other places that pay the same. Although I'm pretty sure it's savings, not checking.

 

[audreyh1]

Go to this thread and you can learn a lot about what some banks are paying on savings accounts. https://www.early-retirement.org/fo...ead-2020-please-post-updates-here-101376.html

 

[georgemoe]

Just got an email from Ally saying their savings rate is reducing from 1.0 to 0.8%.

 

[aja8888]

Just got an email from Ally saying their savings rate is reducing from 1.0 to 0.8%.

It's a race to 0.01%!!

 

[ExFlyBoy5]

My checking account at Capital One pays 0.8% api
I wonder why is it so high.
Anyone has a clue ?

Ugh. While I am not a fan of inflation, I would really, REALLY like to see interest rates in the 3-4% range.

 

[CRLLS]

I'm just curious. I dont; see anything online where they are paying that on a "checking account". Is this a money market? Does it require some minimum balance? My checking account at 53rd doesn't pay any interest.

 

[CardsFan]

I'm just curious. I dont; see anything online where they are paying that on a "checking account". Is this a money market? Does it require some minimum balance? My checking account at 53rd doesn't pay any interest.

It is a Money Market account. Just looked. Down to 0.6%.

 

[mpeirce]

Right, their Money Market account down to 0.6%, the Savings Account is at 0.5%, and the checking is at 0.1%

 

[harley]

As soon as I get my $500 bonus money (later this month) I'm shutting down that account. I recently recast one of my mortgages and was planning to use the Capital One money to help pay it down. But I did the recast first, so I'll just be doing a little bucket juggling. The bonus was/will be nice, but there's no reason to keep the account open at these rates. It just complicates things by having too many accounts.

 

[CRLLS]

It is a Money Market account. Just looked. Down to 0.6%.

Got it. Not a "checking" account but a MM one. That makes sense. I wasn't finding a "checking" account with that interest rate.

 

[wanaberetiree]

As soon as I get my $500 bonus money (later this month) I'm shutting down that account. I recently recast one of my mortgages and was planning to use the Capital One money to help pay it down. But I did the recast first, so I'll just be doing a little bucket juggling. The bonus was/will be nice, but there's no reason to keep the account open at these rates. It just complicates things by having too many accounts.

Me too, but what’s next ?

 

[harley]

Hell if I know.

 

[wanaberetiree]

Hell if I know.

That’s why I posted this question initially . Some dudes say 0.8% is bad.
Show me saving/checking paying better !!

I am actually thinking to move more $ from WF (paying 0.0000000%) to capital one . Why not ?!

Mu bonus is at the end of this month due

 

[jazz4cash]

I can’t tell where this thread is going? Original premise of a CHECKING account paying 0.8% was curious except it turns out it was actually not checking. High Yoeld savings with similar rates are not hard to find. The problem is these rates keep dropping so laddered CDs, esp the No Penalty type are What’s Next to me. I would go quarterly or monthly if necessary. Easy for me since my big expenses are lumpy...taxes and insurance. Beyond that I’m looking at MYGA offers but that’s longer term and more restrictive.

 

[wanaberetiree]

IHigh Yoeld savings with similar rates are not hard to find.

Any recommendations ? What do you use ?

Thx

 

[jazz4cash]

I use PenFed, Marcus, and Ally. I’d quote the rates but that seems to cause them to drop!
If you use depositaccounts.com they report the best rates for FDIC savings and CDs. Also monitor the thread here on the best rates and offers. It takes some diligence and hoop jumping just to get an extra crumb or two.
Marcus has a bonus promo for AARP members. I think Ally, Marcus and many of the others have No Penalty CDs that are attractive in this environment.

 

[jazz4cash]

Here’s an article on the issue. I hate these articles that are not dated but this seems recent. Speculates on some of the background driving rates down:

https://money.com/online-bank-savings-interest-rate-complaints/

 

[cyber888]

My checking account at Capital One pays 0.8% api
I wonder why is it so high.
Anyone has a clue ?

That's low .. it was 1.8% a few months ago, then 1.5%, then 1.2%, then 1%, now only 0.80%.

 

[JustVisitingThisPlanet]

I use Fidelity Individual acct as my primary checking account and they have a fund that acts like a money market called FMPXX. It's 3 yr performance is around 1.7% though down to 1.3% 1yr and tanked too lately, was around 2% at times. Have to actually move funds from core account to FMPXX but when your core empties it auto draws from FMPXX with no penalty. When there are deposits into core, then move to FMPXX again. Rinse, repeat as needed. Call Fidelity to ensure it draws w/out penalty if core empty.

Fidelity also allows 5 free ATM withdraws/month anywhere last I checked (nice to use ANY ATM) and of course can deposit checks with phone app. Good BillPay service as well. Don't need a traditional bank anymore.

For IRA, there's a similar money market fund called FZDXX and behaves the same. It's 3yr performance is 1.6% but down lately.

 

[audreyh1]

The 7 day yield on FMPXX is 0.13%.

Annual performance is what it yielded in the past, not what it yields today.

 

[CRLLS]

The 7 day yield on FMPXX is 0.13%.

Annual performance is what it yielded in the past, not what it yields today.

Hmmmmm, 7 day yield of 0.13% (annualized) and an expense ratio of 0.18%. If I read those correctly, it looks like a loser. Of course there are other benefits over just how much money you can make or loose on your savings.

 

[JustVisitingThisPlanet]

Yeah it tanked recently too.

 

[audreyh1]

Hmmmmm, 7 day yield of 0.13% (annualized) and an expense ratio of 0.18%. If I read those correctly, it looks like a loser. Of course there are other benefits over just how much money you can make or loose on your savings.

The 7 day yield is already net of expenses.

 

[CRLLS]

The 7 day yield is already net of expenses.

Ahhh. Got it. Thanks.