insciodsetco
PHOTODISC/RF
More bang
Costco members
receive an exclusive
rate plus a bonus
when they open
their first account
through the
Costco program.
for the buck
Safe, smartsavingswith Capital One
By Steve Fisher
THE S TOCK MARKET has always been risky,
but many still look to it to make a killing.
Bonds are somewhat safer but not foolproof.
Financial gurus have been saying for years
that Americans do not save enough money. It
took getting caught with our economy down
to shake and wake people up.
Although experts accentuate the positive,
reminding us that while investment markets
struggle there are bargains galore, they also
advise a balanced approach, ensuring a degree
of liquidity. Capital One offers three choices
to Costco members who want to grow and
save their money.
higherinterestratesthanmostsavingsaccounts
because the holder commits to a fixed rate for
a set term. Through Capital One, Costco
mem-bersreceiveanexclusiverateonCDsforterms
of18months,threeyears,fiveyearsorseven
years with a minimum investment of $5,000.
According to Costco Services manager
John Gleason, “Because CDs offer a fixed rate,
this is a great option during uncertain financial times.”
for balances of at least $10,000, in a liquid
account, and provides access to your money
with free online transfers to and from existing
external bank accounts. The account can be
opened online only. A maximum of six withdrawals per calendar month are permitted.
Saving solutions
Depending on the amount a member has
to save and the access to funds needed, Capital
One has an account to fit the bill. Costco
members receive an exclusive rate plus a
bonus when they open their first account
through the Costco program. Here’s a look at
the three types of saving accounts and what
they offer.
Money market account. A money market account offers a higher-than-average rate
of return and three easy ways to access money:
free checks, ATM card and online transfers to
and from existing external bank accounts. A
minimum initial deposit of $1,000 is required
to open the account. Withdrawals are limited
to six per calendar month, three of which may
be by check. ATM withdrawals are limited to
$500 per day. There is also a money market
account specifically for businesses.
Certificate of deposit (CD). CDs offer
Online savings account (OSA). An
OSA offers one of the highest yields available,
Connecting
For more information and current rates, as
well as interactive calculators to see which
account might work best for you, go to
Costco.com and search “direct banking.”
Banking with Capital One
Despite some banks sailing into rough
waters lately, Capital One expresses optimism
in its standing.
“Capital One is a solid, stable institution,”
says Capital One’s Michael Kiernan, principal
product manager, “and deposits in Capital
One are backed by the Federal Deposit
Insurance Corporation [FDIC].”
All deposits with Capital One are FDIC
insured to at least $250,000 per depositor, per
ownership category. FDIC used to guarantee
individual deposits to $100,000, but with the
fiscal crisis the limit was recently increased to
$250,000 until December 31, 2009.
In addition, individual and joint accounts
are insured separately. “If you have both an
individual and joint account in each of Capital
One’s institutions [Capital One Bank (USA),
N.A., and Capital One, N.A],” John adds, “total
deposits, including your significant other’s
share of the joint accounts, can be insured up
to at least $1.5 million [up to $250,000 in each
of the individual accounts, and up to an
additional $250,000 per person in each of the
joint accounts].” C
