HERE ARE THE details on the new
InterestPlus Online Savings program
from Capital One Direct Banking.
Savings at a glance
High interest rate. Costco members
receive a superior, exclusive rate of
1.75 percent annual percentage yield
(APY) with a balance of $5,000 or
more—one of the highest rates you’ll
find among savings accounts, as of
August 19, 2009. A minimum deposit
of $5,000 is required to open an
account. Zero percent APY is earned
on balances less than $5,000. Rates
are variable, and terms and conditions
may change at any time.
New Costco service delivers added
value in a conventional savings vehicle
BRAND X PIC TURES
Bonus. Costco members are eligible
to earn a 10 percent bonus on earned
interest every three months when their
average balance is at least $15,000
each month. The bonus is calculated
quarterly and is equal to 10 percent
of the interest earned on this account
in the previous quarter. In order to
be eligible to receive this bonus, your
account must be open and you must
maintain an average monthly balance
of at least $15,000 every month during the previous quarter. The bonus
will be paid to your account within four
to eight weeks after the end of each
quarter, and will be reflected on your
By David Wight
THERE’S NO escaping the devastating impact of the still-evolving economic crisis.
Home values have declined, stock portfolios
have tanked, retirement nest eggs have shriveled and millions of jobs have evaporated.
As a result, most people have made dramatic changes to the way they live and save.
One major change is a return to more
conventional methods of saving money.
According to the U.S. Department of
Commerce, the personal savings rate hit a
15-year high in May of this year.
That’s why Costco partnered with
Capital One Direct Banking to bring a new
savings program to Costco members—the
InterestPlus Online Savings Account (see
the sidebar for full details)—and made sure
Costco members would find added value
with this program.
“InterestPlus will appeal to Costco
members who want a safe place to invest
their money and still have easy access to it,”
says John Gleason, Costco Services manager. “InterestPlus also offers members a
high rate of return on balances of more than
$5,000, and those members who consis-
tently maintain an average balance of
$15,000 are eligible for a quarterly 10 percent bonus on their interest earned.”
This program provides FDIC insurance
coverage up to the new limit of $250,000,
which has been extended by Congress
through December 31, 2013.
“Since the FDIC considers Capital One’s
two subsidiary banks as two separate institutions, the funds held in each are insured
separately,” says John. “The FDIC determines insurance coverage by ownership categories, which means that if you have an
individual account and a joint account with
your spouse, total deposits for you as a couple can be insured up to $750,000 (up to
$250,000 in your individual account, and up
to an additional $250,000 per spouse in the
“Service is another consideration,” he
continues. “Just because this account is
online, it doesn’t mean it’s less human.
Capital One’s Direct Banking experts are
available to answer any questions and to
assist Costco members; they’re just a phone
call away.” C
Member incentive. Executive
Members get a $60 incentive; Gold
Star and Business members get a
$20 incentive. To receive the member incentive, you must be a Costco
member at the time you open your
account, this must be your first
Capital One Direct Banking account
of any kind through the Costco program and you must deposit at least
$5,000 into your account within 30
days of opening the account. The
member incentive will be credited to
your account four to six weeks after
you make the initial deposit, and may
occur as two partial credits.
No fees. This account is offered by
Capital One Bank (USA), N.A.
FDIC insured to $250,000. Through
December 31, 2013.
Online transfers. To and from existing accounts; withdrawals are limited
to six per month.
E-statements. Account statements
are delivered exclusively online.
To open your InterestPlus Online
Savings Account or check on the
current rates, go to Costco.com and
enter “InterestPlus” in the search box.