Capital One’s array of direct banking services for the members of Costco has just improved its scope with the addition of the InterestPlus , an online savings account that offers the following features:

• When you keep a maintaining balance of $15,000 in your high yield savings account, your savings are eligible for bonus of 10% which is applied per quarter.
• Quality interest rates are applied for savings of $5,000 which is half the rate required for the Online Savings Account rate of $10,000.
• These top or quality rates are higher by 5 basis points than the normal online savings account.

However, depositors need to be aware that the average maintaining balance of $5,000 should be kept otherwise the rate falls to a precipitous low of 0%. The normal online account, on the other hand, yields 1.06% even if the balances were below $10,000. This policy for the OSA has been effective since September 19, 2009.

Figures show that the InterestPlus account rate is set at 1.35%APY as of August 17, 2010. Customers can rest assured that like the normal online account, there are no monthly fees associated with InterestPlus Savings Account. It also allows Automated Clearing House (ACH) transfers from one bank to another.

Since the Annual Percentage Yield is at 1.35%, the InterestPlus 10% bonus guarantees the customer an APY equal to 1.5%. The ten percent bonus at the top of the APY is Capital One’s way of encouraging customers to keep a larger amount of savings. This bonus is much more attractive than an additional rate increase when the balance reaches $15,000.

This offer that the InterestPlus brings, however, is exclusive only to clients who are also members of Costco. Before this offer, Capital One provided accounts that are equal in features and rate with the bank accounts for Costco customers with a slight rate differential. However, people who are willing to take up a Costco account will be happy to learn of a new offer.

Members who apply for executive accounts are eligible to receive a $60 incentive. Business accounts and Gold Star accounts gain their owners a $20 incentive after opening their initial account through direct banking by way of the Costco service. Members need to keep $5,000 during the first month after they get their accounts.

Customers who will be applying for accounts at Capital One need to be aware of some disadvantages in the service they offer. Their Automated Clearing House transfer services can take quite an amount of time to process. There has been accounts of clearing transactions that take as much as three banking days in the least to finish. The latency in this attraction is accounted by the fact that the money is removed from your account a day after you make the switch. The changes will not be reflected until three days later. These are three days when the money does not gain interest. Some customers are likewise unhappy with the customer service of the bank.

The Federal Deposit Insurance Corporation (FDIC) has two listings for Capital One in regards to entities. InterestPlus Savings Account are insured through Capital One, North America with a certificate number of 4297. The bank remains strong with assets amounting to $118 billion and deposits reaching $83 based on information collected last year. Bankrate gives Capital One a sound rating of 4 stars and good rating of 3 ½ from BauerFinancial.