Perhaps they think keeping savings-account interest rates straight is just too easy today.
In a move to differentiate its product from those of its rivals, Capital One
Crunching the numbers, here's what I get: One "point" at Capital One, if taken in cash rather than airline miles, is roughly equivalent to $0.01 in cash rebates. So say a customer puts $10,000 in a Capital One account, and keeps it there for one year -- what's that customer's "take" at the end of the year?
- 10,000 / 20 = 500 points.
- 500 points x $0.01 = $5 per month.
- Multiply by 12 months, and the cash value of the points is $60.
- Add to that 4.65% interest on the $10K, and you've got a total take of $525-- or an effective interest rate of 5.25%.
According to Mr. Murdoch's Daily Diary -- er, I mean, The Wall Street Journal -- Capital One isn't the first bank to pull this idea out of its wallet. Both Citigroup
Turning to Bankrate.com
Foolish yield-seekers may have just found themselves a new bank.
What else do we have in our wallet on Capital One? Find out in: