Does Capital one send emails when their interest rate decreases?

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Topic Author
vanquish
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Joined: Wed Jan 29, 2020 4:49 pm

Does Capital one send emails when their interest rate decreases?

Post by vanquish » Thu May 21, 2020 11:18 am

I bank with Capital One and I just found out my Annual Percentage Yield (APY) on my savings account
("high-yield rate") dropped from 1.9 to 1.3 ( I had not checked in two months)
I tried calling them if I could get it set up so that I get an email when this happens but the rep did not know.

And a bonus question : How concerned are you guys about banks charging us to hold our money now that interest rates have gone negative?
I know this is already happening in other countries and I was just wondering what your thoughts are on this.
Last edited by vanquish on Thu May 21, 2020 11:33 am, edited 1 time in total.

DSInvestor
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Re: Does Capital one send emails when their interest rate decreases?

Post by DSInvestor » Thu May 21, 2020 11:25 am

If you are able to pay your balance in full every month, you have a grace period and will not be charged any interest. I have been fortunate to have been able to do this for 35+ years and I have never paid attention to the interest rates charged by my card. I do pay attention to other fees like foreign transaction fees as those are unavoidable if used outside of the US. I remember one occasion where American Express increased their foreign transaction fee and they notified me of the change.
Wiki

Topic Author
vanquish
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Re: Does Capital one send emails when their interest rate decreases?

Post by vanquish » Thu May 21, 2020 11:31 am

Sorry I'm talking about Earning 1.30% Annual Percentage Yield (APY) on any balance
"A high-yield rate" savings account.

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Chip Munk
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Re: Does Capital one send emails when their interest rate decreases?

Post by Chip Munk » Thu May 21, 2020 11:33 am

The most recent drop in the rate for the 360 Performance Savings account was from 1.5% to 1.3%. Prior to that I had a money market account with Capital One that experienced a couple of rate drops over the past year. I have never received any notification from Capital One about rates dropping for either account. I haven't found any account setting that offers that option, and I haven't seen any reports here that anyone has received a notice from Capital One about an upcoming rate change.

It would be helpful if they did notify us, even after the fact. Lately, I've been checking the rate every few days, since I expected a rate drop was coming. I would rather be notified that have to spend time checking their website every few days.

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vanquish
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Re: Does Capital one send emails when their interest rate decreases?

Post by vanquish » Thu May 21, 2020 11:38 am

Chip Munk wrote:
Thu May 21, 2020 11:33 am
The most recent drop in the rate for the 360 Performance Savings account was from 1.5% to 1.3%. Prior to that I had a money market account with Capital One that experienced a couple of rate drops over the past year. I have never received any notification from Capital One about rates dropping for either account. I haven't found any account setting that offers that option, and I haven't seen any reports here that anyone has received a notice from Capital One about an upcoming rate change.

It would be helpful if they did notify us, even after the fact. Lately, I've been checking the rate every few days, since I expected a rate drop was coming. I would rather be notified that have to spend time checking their website every few days.
Thanks Chip - If I may also ask when you do a direct deposit with them - how long does it take for your money to be in your account?
When I deposit my money with them it takes 5 business days - during this time do you know if we earn interest?

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nisiprius
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Re: Does Capital one send emails when their interest rate decreases?

Post by nisiprius » Thu May 21, 2020 11:54 am

Not to me, it doesn't.
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Chip Munk
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Re: Does Capital one send emails when their interest rate decreases?

Post by Chip Munk » Thu May 21, 2020 11:54 am

vanquish wrote:
Thu May 21, 2020 11:38 am
Thanks Chip - If I may also ask when you do a direct deposit with them - how long does it take for your money to be in your account?
When I deposit my money with them it takes 5 business days - during this time do you know if we earn interest?
I wasn't sure and was curious myself so I looked in their "Account Disclosures" document https://www.capitalone.com/bank/savings ... sclosures/ and it states the following:

Availability of Deposits:
  • Deposits made via check drawn on another bank and ACH deposits that we initiate on your behalf will be held for 4 business days;
  • Cash deposits, ACH direct deposits, and incoming wire transfers will be available the same business day;
  • Checks drawn on a Capital One, N.A., account will be available the next business day.
Generally, you can't withdraw a deposit for 4 business days.

Accrual of Interest on Deposits - For all types of non-cash deposits, interest will begin to accrue no later than the next business day following the banking day on which the funds were deposited. For cash deposits, interest will begin to accrue the same day on which the funds were deposited. (Here's an example - if you make a non-cash deposit on a Sunday, we will process it on Monday, and interest will begin to accrue no later than Tuesday.)

tashnewbie
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Re: Does Capital one send emails when their interest rate decreases?

Post by tashnewbie » Thu May 21, 2020 12:29 pm

I'm not aware of any banks that notify account holders when interest rates drop. Cap. One recently dropped from 1.5% to 1.3% APY on their Performance Savings account (within the last week or days, I think).

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Chip Munk
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Re: Does Capital one send emails when their interest rate decreases?

Post by Chip Munk » Thu May 21, 2020 12:35 pm

tashnewbie wrote:
Thu May 21, 2020 12:29 pm
I'm not aware of any banks that notify account holders when interest rates drop. Cap. One recently dropped from 1.5% to 1.3% APY on their Performance Savings account (within the last week or days, I think).
I first noticed the rate drop on Tuesday (5/19) afternoon. I have been checking the rate every few days, so it could have happened a day or two before the 19th.

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sperry8
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Re: Does Capital one send emails when their interest rate decreases?

Post by sperry8 » Thu May 21, 2020 12:37 pm

tashnewbie wrote:
Thu May 21, 2020 12:29 pm
I'm not aware of any banks that notify account holders when interest rates drop. Cap. One recently dropped from 1.5% to 1.3% APY on their Performance Savings account (within the last week or days, I think).
HSBC Direct sends emails for rate drops. So does Marcus by Goldman. I'm pretty sure Ally Bank does too. Not all hide from their customers.
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Afty
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Re: Does Capital one send emails when their interest rate decreases?

Post by Afty » Thu May 21, 2020 12:40 pm

tashnewbie wrote:
Thu May 21, 2020 12:29 pm
I'm not aware of any banks that notify account holders when interest rates drop. Cap. One recently dropped from 1.5% to 1.3% APY on their Performance Savings account (within the last week or days, I think).
Well, they certainly like to notify us when the rate increases. Agree that I have not received any notifications from Capital One on rate drops. There was a particularly sketchy one recently where they introduced a new account type with a competitive interest rate, then dropped the interest rate on the old account type without telling anyone. They were counting on current customers not noticing and sticking with the old, lower-interest account time. The only reason I found out was that another Boglehead posted a thread on it. Maybe it's time to switch to Ally.

JV
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Re: Does Capital one send emails when their interest rate decreases?

Post by JV » Thu May 21, 2020 12:52 pm

Nope! Rate just went from 1.5 to 1.3 as others have said, and I was checking every day as I was curious since I just opened mine up on 5/7. No notification was sent.

tashnewbie
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Re: Does Capital one send emails when their interest rate decreases?

Post by tashnewbie » Thu May 21, 2020 12:54 pm

Afty wrote:
Thu May 21, 2020 12:40 pm
tashnewbie wrote:
Thu May 21, 2020 12:29 pm
I'm not aware of any banks that notify account holders when interest rates drop. Cap. One recently dropped from 1.5% to 1.3% APY on their Performance Savings account (within the last week or days, I think).
Well, they certainly like to notify us when the rate increases. Agree that I have not received any notifications from Capital One on rate drops. There was a particularly sketchy one recently where they introduced a new account type with a competitive interest rate, then dropped the interest rate on the old account type without telling anyone. They were counting on current customers not noticing and sticking with the old, lower-interest account time. The only reason I found out was that another Boglehead posted a thread on it. Maybe it's time to switch to Ally.
That was a sucky move for the current account holders.

tashnewbie
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Re: Does Capital one send emails when their interest rate decreases?

Post by tashnewbie » Thu May 21, 2020 12:55 pm

sperry8 wrote:
Thu May 21, 2020 12:37 pm
tashnewbie wrote:
Thu May 21, 2020 12:29 pm
I'm not aware of any banks that notify account holders when interest rates drop. Cap. One recently dropped from 1.5% to 1.3% APY on their Performance Savings account (within the last week or days, I think).
HSBC Direct sends emails for rate drops. So does Marcus by Goldman. I'm pretty sure Ally Bank does too. Not all hide from their customers.
I only have a checking account with Ally, so no real notices would be given for that. I have another savings account at Barclays, and no notice from them either. I'm not saying what Capital One does is good, but other banks are in the same boat.

Slowtraveler
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Re: Does Capital one send emails when their interest rate decreases?

Post by Slowtraveler » Thu May 21, 2020 1:15 pm

No. You must check manually.

Goal33
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Re: Does Capital one send emails when their interest rate decreases?

Post by Goal33 » Thu May 21, 2020 1:17 pm

They'll email you twice when they raise the rate to make up for it.
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Topic Author
vanquish
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Re: Does Capital one send emails when their interest rate decreases?

Post by vanquish » Thu May 21, 2020 1:41 pm

Chip Munk wrote:
Thu May 21, 2020 11:54 am
vanquish wrote:
Thu May 21, 2020 11:38 am
Thanks Chip - If I may also ask when you do a direct deposit with them - how long does it take for your money to be in your account?
When I deposit my money with them it takes 5 business days - during this time do you know if we earn interest?
I wasn't sure and was curious myself so I looked in their "Account Disclosures" document https://www.capitalone.com/bank/savings ... sclosures/ and it states the following:

Availability of Deposits:
  • Deposits made via check drawn on another bank and ACH deposits that we initiate on your behalf will be held for 4 business days;
  • Cash deposits, ACH direct deposits, and incoming wire transfers will be available the same business day;
  • Checks drawn on a Capital One, N.A., account will be available the next business day.
Generally, you can't withdraw a deposit for 4 business days.

Accrual of Interest on Deposits - For all types of non-cash deposits, interest will begin to accrue no later than the next business day following the banking day on which the funds were deposited. For cash deposits, interest will begin to accrue the same day on which the funds were deposited. (Here's an example - if you make a non-cash deposit on a Sunday, we will process it on Monday, and interest will begin to accrue no later than Tuesday.)
Okay - Thank you Chip - I really appreciate this info.

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Svensk Anga
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Re: Does Capital one send emails when their interest rate decreases?

Post by Svensk Anga » Thu May 21, 2020 1:53 pm

tashnewbie wrote:
Thu May 21, 2020 12:29 pm
I'm not aware of any banks that notify account holders when interest rates drop. Cap. One recently dropped from 1.5% to 1.3% APY on their Performance Savings account (within the last week or days, I think).
I’ve been getting emails from American Express bank when their rate drops. Not a peep out of Discover bank though.

tashnewbie
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Re: Does Capital one send emails when their interest rate decreases?

Post by tashnewbie » Thu May 21, 2020 2:16 pm

Goal33 wrote:
Thu May 21, 2020 1:17 pm
They'll email you twice when they raise the rate to make up for it.
:D

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djpeteski
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Re: Does Capital one send emails when their interest rate decreases?

Post by djpeteski » Fri May 22, 2020 11:32 am

For the record, AMEX Personal Savings sends me an email when they change their interest rate. Currently at 1.3%. While I have not heard of a sign up bonus with them, I have enjoyed doing business with them for many years.

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Re: Does Capital one send emails when their interest rate decreases?

Post by MikeG62 » Fri May 22, 2020 11:38 am

tashnewbie wrote:
Thu May 21, 2020 12:29 pm
I'm not aware of any banks that notify account holders when interest rates drop. Cap. One recently dropped from 1.5% to 1.3% APY on their Performance Savings account (within the last week or days, I think).
Both Ally and Marcus do. I know this from first hand experience.
Real Knowledge Comes Only From Experience

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Re: Does Capital one send emails when their interest rate decreases?

Post by CardinalRule » Fri May 22, 2020 1:45 pm

Same here. I got the American Express email, but I until saw your post and looked, I hadn't realized that Discover had dropped its rate. :x

American Express message (May 14,in my case):

We want to let you know that as of today, the Annual Percentage Yield (APY) on your High Yield Savings Account is 1.30%. This variable rate is subject to change over time based on economic and competitive factors. You should know that this rate is still more than 10X the national average, so you'll continue to get more out of your savings with your American Express Personal Savings High Yield Savings Account.
Svensk Anga wrote:
Thu May 21, 2020 1:53 pm
tashnewbie wrote:
Thu May 21, 2020 12:29 pm
I'm not aware of any banks that notify account holders when interest rates drop. Cap. One recently dropped from 1.5% to 1.3% APY on their Performance Savings account (within the last week or days, I think).
I’ve been getting emails from American Express bank when their rate drops. Not a peep out of Discover bank though.

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Re: Does Capital one send emails when their interest rate decreases?

Post by suemarkp » Fri May 22, 2020 2:47 pm

I finally opened a Capital One Performance Savings account a few days ago so I could get back to 1.5%, since they lowered the 360 money market rate to 1.3%.

I just checked today, and the performance savings dropped to 1.3% like others have mentioned. But the 360 Money market has dropped all the way to 0.5%. Glad I moved it all over to the perf savings. Sucks that they don't tell you though. I thank the bogleheads that notice this stuff for that!
Mark | Kent, WA

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Re: Does Capital one send emails when their interest rate decreases?

Post by 02nz » Fri May 22, 2020 3:01 pm

I don't keep significant amounts with Capital One because, in addition to not sending notices about drops in the rate, 1) they screw around with account types, so only the newer accounts like Performance Savings get the better rate; 2) their promos exclude customers who've had any Capital One banking account in the past 4-5 years, unlike Marcus, Ally, and others that make existing customers eligible for "new money" bonuses; and 3) their website looks slick but doesn't actually work well.

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happysteward
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Re: Does Capital one send emails when their interest rate decreases?

Post by happysteward » Fri May 22, 2020 5:53 pm

Looks like 360 money market just dropped again, down to 1.1%
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9-5 Suited
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Re: Does Capital one send emails when their interest rate decreases?

Post by 9-5 Suited » Fri May 22, 2020 5:58 pm

tashnewbie wrote:
Thu May 21, 2020 12:54 pm
Afty wrote:
Thu May 21, 2020 12:40 pm
tashnewbie wrote:
Thu May 21, 2020 12:29 pm
I'm not aware of any banks that notify account holders when interest rates drop. Cap. One recently dropped from 1.5% to 1.3% APY on their Performance Savings account (within the last week or days, I think).
Well, they certainly like to notify us when the rate increases. Agree that I have not received any notifications from Capital One on rate drops. There was a particularly sketchy one recently where they introduced a new account type with a competitive interest rate, then dropped the interest rate on the old account type without telling anyone. They were counting on current customers not noticing and sticking with the old, lower-interest account time. The only reason I found out was that another Boglehead posted a thread on it. Maybe it's time to switch to Ally.
That was a sucky move for the current account holders.
It’s the kind of move the people with sociopathic tendencies in banking corporate offices tend to call “a brilliant business strategy” :happy Always have to stay one step ahead of the banks.

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