Like ING, they charge no fees, and have a $1 minimum investment amount. They allow funding of their savings account via a saver's checking account, which they call an "External Account." Their site implies but does not say that you only have one "External Account," which, if true, would make it less useful than ING (which allows 3) for funds movement.
It's a little unclear when interest will begin being paid. The disclosure includes the following statement on this point:
<< Interest will begin to accrue no later than the second business day following the banking day on which the funds were deposited on all non-cash deposits to your Account. >>
I went through most of the application, where their disclosure indicates that they might (but not necessarily will) pull "a" credit report on the applicant. While I'm curious, I didn't want to spend a hard credit inquiry on this product.
Here are questions I'm left with (EDIT: preliminary CSR answers below):
-what credit reports to they pull, and under what circumstances? -May one use more than one External Account? -May one ACH out from the Capital One Savings account--and a related question, does this account give out a routing and account number? -Per above, when does one start and stop getting interest when funds move in/out? That is, how does the float work? -How do users compare this account's usability with ING's? -Have any FW users applied for this account yet?
They can be reached Monday-Saturday at 1-888-303-5162. Hopefully their CSRs will be able to address most of these questions.
(Edited to clarify title per SIS's suggestion and to fix broken savings account link)
I'm not sure I get the point of your reply? I see there is a mention of this account at the bottom of the banking thread (which I haven't followed, thank you!), but discussion of the account is off topic there...
From longwood8's OP:
<< This thread is NOT for debating the pros and cons of the banks listed herein. >>
OTOH, this thread is for exactly that....
Related point: I'm not sure if you or someone else gave this thread a negative rating, or why it was done...but I couldn't view this thread because of it, even though my filers are set to view even "poor" threads. (I was just in the process of reposting it when I got notification of your reply, which let me find it.) Perhaps the forum filters are on the fritz again?
Anyway, credit to markber and udov for first (I think?) mentioning this account in this forum...
-Have any FW users applied for this account yet? >>
http://www.fatwallet.com/forums/messageview.cfm?catid=52&threadid=166090&lastpage=1 It was clear from your first post you hadn't read the messages in the above link; hence the reply. DaveHanson said:
<< Related point: I'm not sure if you or someone else gave this thread a negative rating, or why it was done...but I couldn't view this thread because of it, even though my filers are set to view even "poor" threads. (I was just in the process of reposting it when I got notification of your reply, which let me find it.) Perhaps the forum filters are on the fritz again? >>
Hi Dave, this is a good thread for discussing the Cepital One product, which seems to offer a great rate (I didnt know about this product until just now)
I dont really know why so many negs. You may want to indicate in your first post that this is the Discussion thread for the Capital One product mentioned in the FAQ.
Just called the number above. The friendly CSR who picked up on the first ring explained the following:
-The credit inquiry is for identity verification only, so it isn't a "hard inquiry." -You may indeed have only one External Account at a time. -Interest is paid "the next business day," supposedly even if it takes more than a business day to get the funds in. -they do have an ACH number, but she wasn't sure whether you could "pull" from this account into another account. The ACH number is 056073502. (Edited to reflect RJSachs's post below.)
So, if the CSR is correct about these claims, this account should work very nicely as savings account, and not especially nicely as funds transfer service.
SIS, thanks for the reply--I'll try to answer your email soon.
Thanks DeGlass, I do appreciate your bringing those threads to my attention.
I'm sure many FW readers will miss the mention of Cap1 savings in longwood8's thread--as SIS and I both did--since it's not designed to be a discussion or FAQ thread, but a simple rate comparison. So perhaps Cap1 customers who won't follow the OT remarks there will be able to fill us in here.
As for the filters, I'm still puzzled--by default I can see other threads with negative ratings, but not this thread. I was guessing that perhaps you and others who thought this was a repost might have been giving it a negative rating for that reason...? It seems a perfectly useful thread to me, not a lot to object to...
RJSachs
Senior Member
posted: Aug. 4, 2003 @ 11:08a
DaveHanson said:
<< Since the ACH number is 056073502, and a "5" in the second digit usually denotes an internal deposit number, I'm guessing the answer to this is no. >>
Dave, Quick question. Why do you say the 5 denotes an internal deposit number? I thought the first two numbers represented the Federal Reserve district and "05" meant the "E" district which is Richmond, Virginia. And CapOne is in that district.
Thanks for your post. I checked my notes on this, and I think I may have had it wrong--I was told that a "5" denotes internal by a FirstIB.com ACH specialist, but it was probably just a "5" as a first digit. Your explanation sounds right.
alwayslooking4deals
Senior Member
posted: Aug. 4, 2003 @ 12:41p
Just called the toll free # listed in first post. This acccount is under 'testing' and only available by solicitation. That too for existing capital one credit card holders. event though I have a MM account there , i am not eligible.
According to the CSR , if the 'test' goes well then it will be open for every one. Also looks like that the 2.25% may be a teaser rate since its a test.
They didn't tell me that it's only by invitation, but that makes sense--it explains why there's no link at the front of the web site, unlike with the money market account.
I agree that the 2.25% may be short-lived if the account catches on.
Then again, without account-opening bonuses and with only one external account link, they could keep their expenses extraordinarily low--even less than ING does. This will be an interesting product to follow.
"Transfers generally take 1 to 3 business days to process" - This is great. ING does it in 5 business days. >>
I usually see transferred money in my ING acct 1-2 business days after I initiate the transfer from ING. Depending on when you initiate the transfer during the day, it can affect when the money is credited.
<< "Six withdrawals per calendar month" - Does ING follow this federal regulation as well? >>
YES! When I was being lazy I'd transfer money as bills came in instead of averaging for the month. After doing this for a couple months, I received a letter from ING. The letter said that if I did not reduce the activity to six or less transfers per month, my account would be converted to a checking account.
I have a VERY large CD with Capital One that matures this week. So I worked my way up the authority ladder asking for an exception/accomadation to allow me to roll the their CD $ into their high yield saving account.
No way Jose! Not unless I had received a special WRITTEN invitation. They don't care that I will be removing all that $ from their institution.
So it seems that is probably a DEAD DEAL to most of us unless you are among the lucky few to have received a written invitation.
cak144
Senior Member
posted: Aug. 5, 2003 @ 2:59p
I am surprised that there is not more interest in the General Motors mmf or the Caterpillar mmf. GMAC pays 2.75% from the first dollar and Cat pays 2.0% on the first dollar, 2.28% over $5,000, and 2.5% over $50,000. There is probably a small amount of risk here but not much in my opinion.
I think FORD pays even more, but there are risks in these products...people usually put their cash savings in a low interest account specifically because they dont want ANY risk (otherwise the money would be in higher-return investments)
Ford, GMAC and cat are NOT federally insured money market accounts. They are NOT banks. Rather, they are undiversified, short-term, single corporation notes in poorly performing corporations...much more risky for very little extra return!
cak144
Senior Member
posted: Aug. 5, 2003 @ 3:21p
I agree that there is some risk, especially with Ford. However, the risk is that the companies go belly-up, not that the price will fall as with stocks & bonds. Additionally, I expect that it would be fairly obvious if the companies get to this point and you could always pull your money out then. Ford is in way more trouble than GM and Cat and their mmf still seems to be viable. I have money in both Cat and GMAC and if either one ever gets to the position that Ford is in, I will withdraw my money. I believe that the assumed risk is worth the extra return, particularly if you compare it to the paltry returns (<1%) that most mmf's are paying.
"Transfers generally take 1 to 3 business days to process" - This is great. ING does it in 5 business days. >>
I usually see transferred money in my ING acct 1-2 business days after I initiate the transfer from ING. Depending on when you initiate the transfer during the day, it can affect when the money is credited.
<< "Six withdrawals per calendar month" - Does ING follow this federal regulation as well? >>
YES! When I was being lazy I'd transfer money as bills came in instead of averaging for the month. After doing this for a couple months, I received a letter from ING. The letter said that if I did not reduce the activity to six or less transfers per month, my account would be converted to a checking account. >>
They have a checking account?
PMing4All
Senior Member
posted: Aug. 5, 2003 @ 8:54p
DeGlass said:
<<
They have a checking account? >>
through conversion of your savings account? You understand that you will not be able to open another acc with ING if you do this stuff, right? 1 account per SSN (unless it changed)
I think ING strategically does not offer checking accounts. They are not very profitable as I understand it. Check processing/handling, checks issuance and maintenance take more resources than savings acc's. Besides, who would want to keep any substantial sums of money in zero-interest-bearing checking accounts nowadays that they could profit from?
The letter that I received last year had wording which said the savings account would be converted to "a more appropriate" account. My impression was that the account would be converted to a checking account.
I asked ING about this, and ING said that if one continues to exceed the six withdrawals per month limit, the account will be closed. Presumably, this would be after the warning letter has been sent out.
How long did it take to get your letter from the time you signed up?
I signed up early last week, they've already made the withdraw, but no letter.
Cheap
Senior Member
posted: Aug. 21, 2003 @ 11:06a
<< How long did it take to get your letter from the time you signed up? >>
About a week. If they took the money you got further than I. I think you might be in!
Have you now, or have you ever held a Capital One Account?
profweb
Member
posted: Aug. 21, 2003 @ 11:46a
I applied for the High Yield Savings online and was apparently accepted. (We do have Cap One credit card.) I say we were apparently accepted because my checking account at the local bank shows that Capital One took my $50 intitial deposit electronically on 8/15. Its now 8/21 and I haven't received email or snail mail from them.
siftings
Thrifty Member
posted: Aug. 21, 2003 @ 7:39p
profweb said:
<< I applied for the High Yield Savings online and was apparently accepted. (We do have Cap One credit card.) I say we were apparently accepted because my checking account at the local bank shows that Capital One took my $50 intitial deposit electronically on 8/15. Its now 8/21 and I haven't received email or snail mail from them. >>
I'm in the same situation, although I do not have a Capital One credit card.
profweb
Member
posted: Aug. 22, 2003 @ 8:56a
Update: I called the toll free number for Capital One Bank and told them that I saw the withdrawal from my checking but didnt have any paperwork or account number yet. They told me it would be another week perhaps before I saw that. However, when I asked, they were able to set me up with a username and temporary password so I was able to log into the acccount and setup another transfer of funds.
Skipping 15 Messages...
xerty
Senior Member - 2K
posted: Nov. 11, 2003 @ 4:22a
I got a Cap One account, through an invite as a cardmember. I've been pretty happy with it, reasonable (2-3 day) times for money to appear back and forth. Customer service was excellent, at least when I called to open the account and get an explaination of how things worked. I haven't needed them since then, so I can't speak to resolving problems. The only thing I've had to be careful of is the 10(?) day turn around time before you can withdraw money that you've recently deposited.
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