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The Capital One Rewards Money Market AccountRates and Account Reviews Last Update: April 9, 2008
It's no longer necessary to go deeper into credit card debt to earn reward miles. The new Rewards Money Market account from Capital One lets people earn miles just by saving.
Yield Trend
Account Features
Account Reviews
The new Rewards Money Market account from Capital One lets people earn miles just by saving.
Savers will earn the current yield (see rate above) and one mile for each $20 of their average monthly balance in the Rewards Money Market account. As an opening bonus, savers who deposit at least $500 within the first month will receive 2,500 bonus miles.
Like the credit card equivalent, rewards miles can be redeemed for cash, travel, merchandise, and charitable donations. There’s no limit to the number of miles you can earn and thankfully, miles never expire for the life of the account. Earned miles will be applied to the rewards balance on a monthly basis within 60 days after the end of each month.
If you happen to already have a Capital One No Hassle Miles Rewards credit card, the miles from your Rewards Money Market Account can be added to your Capital One credit card miles.
At its core, the Capital One Rewards Money Market account is a typical online money market account. There are no monthly fees or minimum balance requirements to be concerned about. Funds can be transferred in and out using the “linked” account system where the account holder can electronically link their current checking account to the Rewards Money Market account. This is done using Capital One's online banking system.
Money can be withdrawn by zipping funds to the linked account, by writing a check, or by using an ATM. Capital One doesn't charge a fee for using an ATM, but the ATM owner probably will. Unfortunately, Capital One doesn't refund ATM fees.
Withdrawals by online transfers and checks are limited to a combined six per calendar month, three of which may be by check. ATM withdrawals are limited to $500 per day, with no monthly limit on how many times you use the card.
Capital One certainly has found a novel way to retain customers with this account. Online savers are a particularly tricky crowd to keep since it's so easy for rate chasers to jump ship for a higher rate elsewhere. But those eager to accumulate rewards just may stick around with Capital One.
The trade off, of course, is the lack of interest that will be earned with the Rewards Money Market account. The money market account is one of the lowest online rates offered. Savers will need to decide what's more important to them – the accumulation of miles and merchandise or the accumulation of money.
For those who don't care about rewards, Capital One also offers the High Yield Money Market account.
The minimum initial deposit amount to open the Capital One Rewards Money Market account is $1. There is a 10 day hold on the initial deposit. Subsequent deposits will be subject to a five-day hold.
Interest begins to accrue on the day Capital One receives electronic funds and one business day after receiving all other non-cash deposits, including checks, and cashier's checks.
More Accounts from Capital One Bank
High Yield Money Market Account
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