Today at Peak Personal Finance, we are going to have a look at how certificate of deposit rates are performing at Capital One.

Capital One CD rates are calculated by using the national standards and internal banking rules and regulations. The bank requires a minimum investment of $5,000. A 6-month investment will yield 0.25% APY whereas a 1-year CD will return an APY of 0.50%.

Capital One certificate of deposit rates for an investment of 18-months returns an APY of 0.91%. A 2-year CD yields 2.00% whereas a 30-months CD will return 0.75% APY.

Relatively lower returns can be had on a 3-year CD as it will return an APY of 1.90%. Rates ascend after the three year investment as 4-year CD returns 3.00% APY. A 5-year CD has an APY o 3.25% and bank CD rates are constant for the 7-year and 10-year CD as well, at 3.25%. All of these rates are subject to change depending on the market conditions and financial regulations by government agencies.

Capital One offers best CD rates for the 5-year CD by following the industry standards and practices. It does offer lower rates for the medium term investments of two years to four years. An ideal investment will be a 1-year CD for the short term and 5-year CD for the long term investors. The bank does not offer any of these rates to corporate customers and strictly implement the general investors’ rules in the operation of these accounts.

Penalties are charged on early withdrawals and customers can also face some other deductions and additional fees in case of violation of the user agreement.