Capital One Costco Money Market Account

Anyway, like many FW'ers I've been chasing interest rates and am trying to settle on one account that pays a good rate and has a good set of features. I've moved from ING, to HSBC, to Emigrant Direct, and am now thinking this may be the best option, despite some of it's shortcomings.

It's interest rate is .01% lower than Emigrant Direct, but I must confess I got a little worried about them after reading this US News and World Report article covering internet banks, with a focus on ED, and then recent reports here on FatWallet that they may be selling email address lists.

In general they appear to be a good choice because of their relatively high interest rate, check writing, ATM access, and a minimum balance to earn interest of just $100 (though you need a $5,000 initial deposit). The biggest downside compared to many of the other internet savings accounts is that they have no facility for pushing in or out ACH transfers from what I've read.

darkhaven said: I called to cancel my account today, and the woman on the phone claimed that "major changes" were coming which included "multiple new ways to make deposits." She didn't give any more details, so I ended up cancelling, but she said the changes should be in place around Sept. 15th.Why did you cancel your account?

scott1961 said: Beckles said: The biggest downside compared to many of the other internet savings accounts is that they have no facility for pushing in or out ACH transfers from what I've read.
You can transfer in and out as long as you initiate from another bank. Yeah, that's what I mean when I say they don't have a facility to do it, I expect you can of course do it using other means.

Hopefully the above poster got good information and they will rectify this, according to the thread on the general Capital One MMA they have the ability to do some ACH transactions now.

I am a little confused.
In the FAQ: How do I fund my money market account?
After you complete your application, you have two convenient options for funding your money market account:
1. Send a check, 2. Make a wire transfer

And on the fees may reduce earning, it says $20 for "Wire transfer".

Does it mean I have to pay $20 each time I choose wire transfer to make a deposit?
Anybody have experience with it?

It does not say wire in or out, that is why I am confused.
I thought it should be only for wire out.
I may try to call them about this.

uutxs said:
Is it $20 for Wire-in or Wire-out? Many (not all) banks do not charge anything for Wires coming in. Your other bank from where you initiate the wire likley would charge you though.

So far every bank I've banked at (HSBC, Capital One Direct, WAMU, Wells Fargo, CitiBank, Commerce National (local bank), Compass) has charged incoming wire fees. Most are around $10.

The one that really gets me is WAMU, though. $10 for incoming wires, but free outgoing? Its almost as if they don't want my money. =)

darkhaven said: Where I live you can see the capital one bank from the citibank down the street. I can get 5% interest with same day deposits at the Citibank, but have to wait a week for my check to get to Capital One in the mail or pay $20 for the incoming wire fee. It makes no sense for Capital One not to offer their direct banking products as having service in branch considering that Citibank and HSBC do. If Capital One causes their product to be competitive then I'll switch back. Until then, I'd just assume have one fewer bank account in Quicken. =)I'm not trying to defend Capital One for this by any means, but just by way of explanation I believe the reason for this is that Capital One bank down the street from you may not be the same Capital One bank that the Money Market Account is held at, they have several different banks owned by the same company operating under the Capital One name (Capital One, NA, Capital One FSB, and then the old Hibernia Bank, which I'm not sure what charter they're operating under, or maybe a totally different one than those first two).

As for being "competitive", I guess that just depends on the features you want, because while it does appear the transfers in leave something to be desired, as far as I'm aware there's no other account with such low minimum balance requirements that offers check writing and ATM access to the account.

Beckles said: they have several different banks owned by the same company operating under the Capital One name (Capital One, NA, Capital One FSB, and then the old Hibernia Bank, which I'm not sure what charter they're operating under, or maybe a totally different one than those first two).

The two banks that operate under Capital One Direct and accept internet accounts are Capital One Bank and Capital One, F.S.B. It used to be that Capital One Bank only offered jumbo CDs and Capital One FSB offered all the other accounts, but that changed a year or two ago. Now they seem to switch off every few weeks as the default bank for opening internet accounts, although you can request a specific bank at the time you open the account.

The old Hibernia is now Capital One, N.A. They cannot service your internet accounts.

Incidentally, all three banks are separate for FDIC insurance purposes.

darkhaven said: but she said the changes should be in place around Sept. 15th.Got snail mail about this. Come Sept 15th, there will be a phone access system to check balance etc.

mike212 said: I registered via the CostCo link 9 months ago, but my membership lapsed for a while and I'm not sure if my interest rate is the highest now.

Under account information my rate shows 5.01%, but I'm not sure if that's an APY or just the nominal rate.

What rate does it show under account information for those that have this CostCo Capital One Account?

Thanks.
That is what mine shows. That gives you an APY of 5.14%

For now, CostCo MMA APY is now 0.314% higher than the HYMM account. Dont think that wide differential will last long.

Got an email today from Capital One telling about the new safety features and login procedure starting later this month. The email had a link to the online banking login page, but I am not "enrolled" in "online banking" but rather in "direct banking" because the Costco MMA is separate, etc. etc. So I still don't know if this new login applies to those of us with the Costco MMA. Anybody out there received clearer info?

This CostCo MMA allows checkwriting, so you can send a check to ING to link it up.

To answer an earlier question, the $20 fee on wire transfers is for outgiong wires only. Incoming wire transfers are free. (Note that a wire transfer is not the same thing as an ACH draft for those of you who are confused...)

scott1961 said: Beckles said: The biggest downside compared to many of the other internet savings accounts is that they have no facility for pushing in or out ACH transfers from what I've read.
You can transfer in and out as long as you initiate from another bank. I have had MMs and CDs with CapOne for about 10 years and did not know about the Costco account till I came to FW last year. Since I am a member I called and they changed my account. I have always found them to have excellent CSR's. Also like the fact I have checks. Can be nice for a large payment to get a high rate of interest till the last second.
I have a MM account with Capital One and just called to get the CostCo rate (I am a CostCo member).

I was told by the CS Rep that they cannot update my current account to the CostCo rate - instead I have to open a new Cap One CostCo Money Market account (with either a check or wire transfer), then transfer the funds from my existing CapOne MM account to the new CapOne CostCo MM account.

How did you get them to convert your account without doing as I was instructed?

BTW - I was told that with the new Web Interface the CostCo MM account can now link to external accounts for ACH transfers.

edit - Beckles posted the same info about linking external accounts as I was posting.

I was told by the CSR that there is no credit check when openning the account.

pho008 said: Has anyone noticed Capital One having done a credit check when this type of account was opened? If so, what kind of credit check was it?

Noted on WIKI that I was allowed to ACH funds from my other MMChecking to open/fund this account.

They are making two small deposits into my other MMChecking, and when I see them in the register, I'm to go to CapOne On-Line Banking and notify them, at which time they will make the request for funds that I authorized.

WIKI said only check or wire transfer allowed. I think what I did was an ACH, but someone can correct me if I'm wrong.

Yesterday I started the process to link and today the trial deposits showed up, Made $1.10 in free money. I can transfer from the linked account to my Capitol One but says it can take up to 5 days before I can transfer out of Capitol One. As soon as I can I plan on trying to see if they will be like Emigrant with 1 day or HSBC 3 days

Beckles said: scott1961 said: Yesterday I started the process to link and today the trial deposits showed up, Made $1.10 in free money. I got $1.40 out of them myself.
I feel cheated, when I set up my link they deposited 1.54 and took it back out the same day.