Capital One is offering a cash bonus of up to $500 for new money-market accounts, but only for a limited time

Onfokus/Getty

Capital One's money-market account is a good place to store a lot of cash you may need soon.

Personal Finance Insider writes about products, strategies, and tips to help you make smart decisions with your money. We may receive a small commission from our partners, but our reporting and recommendations are always independent and objective.

• Capital One is offering cash bonuses of up to $500 for new money-market accounts until May 19.
• To earn the bonus, customers who don't currently save money with Capital One must open a new money-market account at Capital One using the promo code "EARN500" with cash transferred from a different bank.
• Then, they must maintain a minimum balance of at least $10,000 (for a $200 bonus) or at least $50,000 (for a $500 bonus) for 90 days.
• Capital One 360 Money Market accounts have no monthly fees and earn an APY of 2% for balances above $10,000.

From now until May 19, Capital One is offering $200 and $500 cash bonuses for new customers who open a new money-market account at the bank.

For a 90-day balance of at least $10,000 in a Capital One 360 Money Market account, the bank will pay a cash bonus of $200. Balances of at least $50,000 or more for 90 days get a cash bonus of $500.

The Capital One 360 Money Market account earns an annual percentage yield (APY) of 2% for balances above $10,000. While it does not come with a debit card or check-writing capabilities, as some money-market accounts do, it has no monthly fees. The account can be accessed anytime through the Capital One mobile app.

Combined with the cash bonus, Capital One estimates an account holder with a $10,000 balance could end up with a $400 payout in one year, while a $50,000 balance would yield a $1,500 payout.

To earn the bonus, customers who haven't had a Capital One savings product since January 1, 2016 must open a new money-market account at Capital One using the promo code "EARN500" with cash transferred from a different bank. The account must also maintain the $10,000 or $50,000 balance minimum for 90 days after the first deposit. Within 60 days, the cash bonus will be deposited in the account.

Because of its high minimum deposit, Capital One's money-market account is a good place to store a lot of cash you may need soon. It may not be the best place for a few thousand dollars. Any balances under $10,000 earn an APY of 0.85%, which is lower than interest rates offered on some competing money-market accounts.

Money-market accounts, like high-yield savings accounts, are a popular and expert-recommended vehicle for storing cash you'll need in the short-term - think: emergency fund. They typically come with low or zero monthly fees and high interest rates. Some also have low minimum deposits and access to a debit card or checks.

It's important to note the Capital One cash bonus offer is also subject to taxes like other interest-bearing accounts. If you earned interest throughout the year from a high-yield savings account, you'll get Form 1099-INT from your bank to include with your tax return.

The relatively high minimum balance required to get the cash bonus is not uncommon among comparable offers. That said, there are high-yield savings accounts and money-market accounts that offer an APY of 2% or more (without the bonus) for much lower balances, like Ally and Marcus by Goldman Sachs. 

• More limited-time offers and savings tips:
• Delta is running a last-minute deal on its credit cards - their bonuses are worth double the normal amount
• The best credit card rewards, bonuses, and benefits of 2019
• I doubled my savings in 2018 and it took only 5 minutes of effort
• Saving money is a good start, but where you keep those savings can matter even more

Personal Finance Insider offers tools and calculators to help you make smart decisions with your money. We do not give investment advice or encourage you to buy or sell stocks or other financial products. What you decide to do with your money is up to you. If you take action based on one of the recommendations listed in the calculator, we get a small share of the revenue from our commerce partners.