Posted by Chuck on June 6, 2019
Bank Account Bonuses

Published on June 6th, 2019 | by Chuck

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Capital One Money Market $500 Bonus + 2% APY (Requires Deposit of $50,000)

Offer at a glance

  • Maximum bonus amount: $500
  • Availability: Nationwide
  • Deposit Required: $50,000+
  • Deposit Length: 10 days from account opening
  • Hard/soft pull:  Soft, as long as you opt out of overdraft protection
  • ChexSystems: Mixed
  • Credit card funding: None
  • Monthly fees: None
  • Early account termination fee: None
  • Household limit: None listed
  • Expiration date: May 28 – July 31, 2019

The Offer

Direct link to offer

  • Capital One is offering a bonus of $500. To receive the bonus you must use the promo code SPREE500 & deposit $50,000 within the first 10 days of account opening and then maintain that balance during the following 90 days.

 

The Fine Print

  • Open a 360 Money Market account between 12:00 a.m. ET on May 28, 2019, and 11:59 p.m. ET on July 31, 2019.
  • When you open your account, enter your promotional code—SPREE500. If you have or had an open savings product (excludes CDs) with Capital One after January 1, 2016, you’re ineligible for the bonus.
  • If you have or had an open savings product with Capital One after January 1, 2016, you’re ineligible for the bonus.
  • Deposit $50,000 or more of new money from an external bank (transfers between Capital One accounts will not qualify) within the first 10 days of account opening (Initial Funding Period).
  • You will earn the $500 bonus once you’ve maintained a daily balance of $50,000 or more for the first 90 days following the Initial Funding Period.
  • This offer cannot be combined with any other Capital One Bank or Capital One 360 new savings account opening offer, including savings accounts opened through Refer A Friend. Only one promotional code is accepted. Bonus is only valid for one account.
  • Capital One will deposit the bonus into your account within 60 days following the 90-day period. If your account is in default, closed, or suspended, or otherwise not in good standing, you will not receive the bonus.
  • A rate of 2.00% Annual Percentage Yield (APY) applies to accounts with balances of $10,000 or more. A rate of 0.85% APY applies to accounts with balances less than $10,000. Advertised rates are effective and variable as of 6/6/2019. Rates are subject to change at any time after account opening.
  • To calculate interest, we apply a daily periodic rate to the principal in the account each day.
  • 360 Money Market accounts don’t have debit cards or check-writing capabilities.
  • There’s no monthly cycle service charge for this account, and no minimum balance required to open or maintain the account. Accounts are subject to statement cycle transaction limits. This account is a consumer-only product. If you have an Individual Taxpayer Identification Number (ITIN), you cannot open an account online. You may open an account in a branch using your ITIN if you’re a U.S. person for tax purposes and can complete an IRS Form W-9.
  • All bank account bonuses are treated as income/interest and as such you have to pay taxes on them.

Avoiding Fees

This account has no monthly fees and there is also no early account termination fee.

Our Verdict

Offer is similar bonus amounts to what we’ve seen in the past from Capital One. This bonus appears to be publicly available for anyone, though many people won’t be eligible due to having a Capital One savings product since 2016 (“savings product” seems to include both savings accounts and money market accounts).

You do need to tie up the funds for 90-100 days. The good thing is that the account earns a competitive 2% APY interest rate. Personally, I’d probably go for this bonus if I wasn’t an existing Capital One savings customer. We’ll add this to the best bank bonus page. Keep in mind that cumulative deposits no longer work for these Capital One bonuses.

Big thanks to reader AKJohnny who let us know about this offer. Learn how to find bonuses and contribute to the site here.

Useful posts regarding bank bonuses:



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Debit
Debit

Capital one sent me 1099 int after I filed my taxes. I haven’t reported about $500+ in interest income as a result. Now if i try to amend the v return through turbotax it wants me to print out and mail it in and I have been dragging my ass. I already got my from refund requested.

Two part question:
1) how come irs didn’t catch the missing 1099 and adjust my refund accordingly
2) what are the chances IRS will find out about it now? Is there to way amend it online if I filed it through turbotax previously?

akjohnny
akjohnny

ask Wesley Snipes about them taxes…

Arley
Arley

IRS likely received the 1099 after just like you did. Better amend your return. You don’t want to mess with the IRS. You can amend the return online on TT (and highly recommend so TT does the calculations), but you can’t e-file amended returns. You will have to print it and snail mail it in.

Fred
Fred

Per the IRS, you cannot file a 1040X electronically (https://www.irs.gov/faqs/electronic-filing-e-file/amended-returns/amended-returns). Did you receive the 1099 before or after the IRS accepted your return?

I would be very wary of relying on the assumption that the IRS didn’t notice or won’t care about that.

And, not that this is particularly useful for you now, but around January, I look through every financial institution I’ve had an account with during the tax year, and make a note of how much interest I think I’ve received from them, so I know what 1099s to wait for. Then, if you haven’t received a 1099 you’re expecting, you can call and ask if/when a 1099 will be generated, and if you can download it. I think a bank is required to send a 1099 if interest is over $10. And, while I have seen some checking bonuses where a 1099 was not generated, I have never seen a savings bonus where they didn’t tack it onto the regular interest on the 1099.

Arley
Arley

PNC didn’t sent me 1099 for a $300 virtual wallet checking bank bonus this year. I have read reports they treat checking bonuses as rebates and not interest. So YMMV. Though, I agree aside from a few banks like PNC most banks will send you a 1099-INT.

Fred
Fred

Arley, I agree. I think that was my case experience with PNC, and also with one other bank which I can’t recall. Like you mentioned, I assumed they consider it a rebate against the debit card purchases required. If the bank doesn’t consider it interest, I won’t either (not a recommendation, just my practice). But with a savings bonus, there’s no argument for that line of thinking, so I would either wait for the 1099 or just report the interest based on my own records.

Gidget
Gidget

IRS don’t mess around

Sparky
Sparky

I think the IRS in the past typically doesn’t send you a notice until 18 months later.

Jared
Jared

I keep my own calculations for reasons just like this. I look at the total interest (and new account bonuses) reported directly on the online account webpage. That way, you aren’t dependent on the bank to send a 1099 before you file.

Kay
Kay

Looks like a good bonus if you have the 50k to meet the requirement.

A
A

What are the ways to transfer money between banks? Is there an article for it ?

I previously did Discover and it was easy to pull large amounts from another bank. Would Cap1 allow large amount pulls? or would you need personal checks/pushes/wires from other banks?

Closertothesun
Closertothesun

0.4 APY on the 90 days bonus, plus the 2% in the account makes 0.6 APY. You might think this compares well to 7% S&P returns, but you would be mistreating inflation — historical nominal S&P returns are 10%, 7% is *REAL, INFLATION-ADJUSTED.*

So it falls short by 4%. And while it’s guaranteed, and the stock market is volatile, if your time horizon is long the stock market tends to do pretty well and without any hassle. I like these $ savings bonuses when they reach 10%.

This could make sense for someone with a short investment period, saving for a house or a wedding comes to mind. But people with investment horizons greater than 5 years shouldn’t really have 50k uninvested, unless expenses are ~10k/month.

AlarmingConsequence
AlarmingConsequence

Data Points:
CSR report they quirey Chex and EWS.
Opened an account with Equifax freeze in place.
Freezes for TransUnion and Experian were temporarily lifted.

Jenny
Jenny

I called and they said I had this in 2016.
So I put it in my husband’s name.
Been over 2 months and no bonus yet.
Will take out ASAP. 2% is ok, but I can do better.

Jahannes
Jahannes

The terms say 50000 for first 90 days you’re carrying a balance, which could be up to a hundred days if it takes you 10 days to move your money into the account. Maybe you didn’t wait long enough if your money was only there for between two to three months?

Jenny
Jenny

Thanks, you must be right. Now I have to see if I can close the account as soon as the bonus posts or wait whatever

Shark
Shark

Point of clarification:

If I opened my CapitalOne savings and checking account prior to 2016, am I still not eligible for the bonus on the Money Market account?

My savings account was opened in the 2014

fjordlander
fjordlander

If your savings account was still open on 2 January 2016 or later, it says you’re not eligible for this bonus.

Jenny
Jenny

You may want to call them for clarification

fjordlander
fjordlander

I applied online and then had to call in to verify my identity. The agent pushed my application through over the phone, but when I got to the end I realized I never had a chance to enter the promo code and totally forgot about it! Called back again and they put a note on my account that they will honor the promo code, but I have to call back again after the 90-100 days to request them to add the bonus since I lost the chance to get it automatically.

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