Recently I opened a Capital One Money Market account because they’ve started offering pretty attractive yields. If you look on their savings & money market accounts page you’ll see 4 accounts available.
- InterestPlus Online Savings – 1.10% APY (with 10% quarterly bonus on interest earned)
- High Yield Money Market – 0.75%
- Rewards Money Market – 0.75% + reward miles
- Business Money Market – 0.70%
All the accounts have no monthly fees or minimum balances but you’ll need at least $1,000+ to earn 1.10% on the InterestPlus Online Savings.
The yields would seem pretty straightforward except the InterestPlus Online Savings offers a 10% bonus on interest earned every quarter and the Rewards Money market offers reward miles based on your average monthly balance. These bonuses juice up the yields a little bit.
The InterestPlus Online Savings yields about 1.21% – Since you’re getting 1.10% APY, a 10% bonus of the interest earned would give you an extra 0.11%. This is a pretty good yield but however you might want to consider the rewards money market.
The Rewards Money Market Account yields about 1.4015% – In addition to 0.75% APY you get 1 mile for every $20 of your average monthly balance.
For example with a $10,000 balance you’d end with 6,015 miles after a year. The extra 15 miles is from your growing balance from the 0.75% APY. Each mile is worth $0.01 therefore $60.15 / $10,000 is a 0.6015% return.
Add together 0.75% + 0.6015% and you have a yield of 1.4015%.
The miles are redeemable for travel, gift cards, etc. They’re the same type of “no hassle” miles earned in other Capital One reward programs. There’s also the added benefit that you won’t be taxed on the reward miles.
Check out CapitalOne’s savings and money market offerings.