Capital One Direct Banking now has a promotion for its Online Savings Account. The promotion will give a $25 bonus for every new account owner from now till November 25th when the minimum deposit requirement is met.
I like the idea that banks offer a little incentive when they try to lure new customers, though what they actually offer also plays a role when deciding whether I want to do business with the bank or not. In this case, what Capital One offers in its Online Savings Account is a annual yield of 1.60% APY. How competitive is this rate compared to other online banks’ offers? Well, it’s higher than ING Direct Orange Savings Account‘s 1.30% APY, but lower than EverBank Money Market Account‘s 2.51% bonus APY (which is good for the first three months after account opening). The rate is also inferior to the 1.80% APY from Ally Bank Online Savings Account. So in general, Capital One is in the middle of the rate ladder. While the rate seems to be OK, savers, especially those with a relatively small account balance are likely to stay away from the bank because, in order to earn the 1.60% return, you will have to maintain at least $10,000 in the account, a requirement that’s significantly higher than what other online banks require. If the balance falls below the mark, then you can only earn 0.60% APY for your money.
These High-Yield Savings Accounts let you earn more with your money:
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If you can meet the minimum balance requirement, here’s what you need to do in order to get the bonus:
- Open a Online Savings Account before November 25th using promotion code SAVER25DF;
- Make an initial deposit of $10,000;
- Get $25 bonus from Capital One.
Quite straightforward, right?
BTW, the bonus offer is also good for Capital One’s Money Market Account, which has an yield of 1.20% APY.
