Capital One CD,5% for 11 months

[Anonymous]

That's a good deal to put your money temporarily somewhere.

[Anonymous]

I just did. 50k

[Anonymous]

I broke a low-interest CD for this one. Should make up the penalty within a few months.

[Anonymous]

LinK?

[Anonymous]

https://www.capitalone.com/bank/cds/special-cd-rates/

[Anonymous]

Thanks!!

[Anonymous]

Np, and I just opened one too. Interesting-- I already have three accounts with Cap 1, and they are still requiring me to bring ID into the branch to complete the CD account because the pic I took with my phone was unclear. I love this measure of security!

[Anonymous]

Question. I have 100k in savings that I can afford to put in a CD for a few years (don't want it in the stock market). The Cap One 5% CD is enticing. I know nobody can predict what interest rates will look like in a year from now. But - does it make sense not to put the money in the 5% 11 month CD only to find that rates have gone down when the term ends and have to settle for a lower term CD or savings account, but put the money in a 4.3% 24 month CD instead?

[Anonymous]

Just opening one yesterday.

[Anonymous]

Anonymous wrote:Question. I have 100k in savings that I can afford to put in a CD for a few years (don't want it in the stock market). The Cap One 5% CD is enticing. I know nobody can predict what interest rates will look like in a year from now. But - does it make sense not to put the money in the 5% 11 month CD only to find that rates have gone down when the term ends and have to settle for a lower term CD or savings account, but put the money in a 4.3% 24 month CD instead?

Just to be clear, 4.3% for two years is equal to 5% the first year, then reinvested at 3.7% for the second year. 1.043^2 = 1.05*1.037. So, the real question is whether or not you can get 3.7% for one year, one year from now.

[Anonymous]

I will call and ask but does anyone know how or have experience with taking money out during the 10 day grace period if you don’t want it to mature? BOA has you go in person to withdraw the funds.

[Anonymous]

Anonymous wrote:I will call and ask but does anyone know how or have experience with taking money out during the 10 day grace period if you don’t want it to mature? BOA has you go in person to withdraw the funds.

I have a Diff bank but it lets you edit the maturity instructions online to have it deposited into a new CD, deposited into another account, etc. this can all be done online or with the app

[Anonymous]

This is not even better than T-bills, which are exempt from state income tax.

Here in MoCo, our state/local taxes are over 8%, so we only have to get 0.92 x 5% = 4.6% to match the Capital One rate. And one-year T-bills are at like 4.65% now.

[Anonymous]

Thanks, OP. I just did the 11 months.

[Anonymous]

Anonymous wrote:This is not even better than T-bills, which are exempt from state income tax.

Here in MoCo, our state/local taxes are over 8%, so we only have to get 0.92 x 5% = 4.6% to match the Capital One rate. And one-year T-bills are at like 4.65% now.

So it sounds about equal unless I'm missing something.