Capital One Bank operates under the supervision of its parent company, Capital One Financial Corporation (COF). COF is a Fortune 500 company whose headquarters is in McLean, Virginia, where the company is listed at the New York Stock Exchange and is also a part of the S&P 100 index. The company has several offices across the US. Besides Capital One Bank, the other subsidiaries of Capital One Financial Corporation are Capital One Auto Finance Inc, and Capital One N.A., which provide a wide range of financial products and services to its clientele whether it is a small business or commercial customers. The aggregate deposit base of the group stands at $85.7 billion (based on FY07 accounts).
The Capital One Group stands tall among the top 10 credit card issuers in the UK and United States, with 49 million world-wide customers' base. The introduction of 'balance transfer' concept in 1992 authorized credit cardholders to shift their balances to Capital One at more conducive interest rates. This stratagem brought a revolution in the U.S. card market and helped Capital One to expand from one million customers in 1990 to 49 million up till now.
Capital One's first overseas operation was launched in the UK in 1996 where the UK banking service presently offers Visa and MasterCard credit cards to its UK clients. In December 1997, Capital One established £30m Operations Centre in Nottingham to facilitate its UK and European costumers on a long term basis. In mid 2000, the company started a new facility adjacent to its European operations centre, in Nottingham, thus created additional jobs for the UK workforce. Capital One was chosen as one of most conducive and state of the art workplaces in the UK in the editions of Sunday Times Top 100 and the Financial Times Top 50 reports.
The key area of operational niche of Capital Bank is its Direct Banking Unit offers attractive rates on high yield money market accounts, business money market accounts and Certificates of Deposit across the US. Due to the facilitation of Internet and Phone Banking the customers have the benefit of convenience and out of harm's way to their accounts. A High Yield Money Market Account is a savings account which proffers an above average rate of return on one's funds. Likewise other high yield bonds and securities these money market funds do have a risk factor attached to them as the rates are subject to change. However, up till now no such major news of affectee of Capital One is heard as the bank is maintaining its strong position in the hard times of the economy
This has given a view to the end-users that Risk involved in Capital One Bank's high yield money market account is not a big factor as High return always comes with an increased level of risk. As the fund is already ensured the other point which attracts the most is the reward (Annual Percentage Yield) that outweighs the risk factor to a considerable extent. For the risk averse investors, the crux of a money market account is that it is good alternative to the riskier and volatile investments as no one can afford to put their hard earned money at risk. Hence it’s an easy way to opt for reliable returns through a money market account where investors’ money remains highly liquid. Based on the Annual Percentage Yield (APY), see what the following banks are offering:
• Savings Square, 3.50% APY
• WT Direct, 3.31% APY
• Washington Mutual, 3.30% APY
• E*TRADE Bank, 3.25% APY
• FNBO Direct, 3.25% APY
• HSBC Direct, 3.05% APY
And so on.
