Capital One ended the third quarter with $480.7 billion in deposits, down $3.6 billion, or 1%, from the end of June. The dip is small against a balance that size, and it came while loans grew $5.4 billion. The figures come from Capital One’s quarterly earnings release filed October 20.
Average deposits slid by a similar amount, $4.2 billion to $482.6 billion. Meanwhile the bank paid slightly more for the money it kept: the rate on interest-bearing deposits rose 3 basis points, or 0.03 percentage point, to 2.94%. That is the bank’s cost of funds, not an offer to savers.
For depositors the question is whether a shrinking balance and a rising rate mean better savings terms. The release does not say, and it does not break out why customers moved money. What it does show is how the $480.7 billion divides between consumers and businesses, and that split matters more than the total.
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Consumer deposits make up most of the total
The consumer bank held $431.1 billion at the end of September, down 1% from $435.2 billion in the second quarter and up 3% from $416.8 billion a year earlier, according to Capital One’s earnings presentation. Year over year, that is $14.3 billion more.
The consumer bank paid an average of 2.78% on those deposits, up 2 basis points from the second quarter and down 29 basis points from a year ago. The year-over-year drop shows Capital One paying less on consumer deposits than a year ago even as the quarterly rate edged up.
Commercial banking held $31.1 billion in deposits, up 1% on the quarter, at an average rate of 1.83%. That leaves the consumer side as the one that slipped. Consumer balances account for about 90% of the total, so a 1% move there is what drives the company-wide decline.
What the balance sheet says about funding
Of the $480.7 billion, $453.0 billion is in interest-bearing accounts and $27.7 billion in non-interest-bearing ones. Insured deposits were $408.1 billion, or 85% of the total. Total assets stood at $672.9 billion on September 30.
Loans held for investment reached $462.5 billion, up $5.4 billion, or 1%, on the quarter. The bank therefore lent out roughly $0.96 of every deposit dollar. Credit card loans were $276.4 billion, auto loans $92.9 billion and commercial loans $92.1 billion.
Deposits fell while loans grew, so the gap between the two narrowed. Loans held for investment rose 1% as deposits fell 1%, a two-point swing in a single quarter at a bank this size. Average loans of $457.4 billion were up $6.7 billion from the second quarter.
Beyond the 13.8% common equity tier 1 ratio, which was up 10 basis points on the quarter and down from 14.4% a year earlier, the bank reported a Tier 1 capital ratio of 14.6%, a total capital ratio of 16.5% and a Tier 1 leverage ratio of 11.9%, on risk-weighted assets of $520.4 billion. The release calls the capital figures preliminary and subject to change.
The Discover deal sits behind the totals
Capital One closed its Discover acquisition in May 2025, and the combined bank now reports one set of results. Chairman and chief executive Richard Fairbank said in the release that “the Discover integration continues to go well and we’re making good progress on delivering the expected synergies.”
Earnings rose even as deposits slipped. Net income was $3.5 billion, up from $3.0 billion in the second quarter and $3.2 billion a year ago, and adjusted earnings were $6.69 per share, against $5.81 in the second quarter and $5.95 a year earlier. Revenue rose 3% to $16.3 billion.
The integration carries a price: $338 million in pre-tax Discover expenses in the quarter, compared with $298 million in the second quarter. Reported earnings were $5.61 per diluted share, and the quarterly common dividend held at 80 cents, up from 60 cents a year earlier.
The gap between what the bank earns and what it pays is wide. Net interest income, interest on loans less interest on deposits and other funding, rose 4% to $12.9 billion, and the net interest margin widened 40 basis points to 8.41%. The bank paid an average of 2.94% on interest-bearing balances, so the margin is mostly lending income.
Consumer banking, the unit holding those deposits, earned $560 million, up 15%, on $3.3 billion in revenue. Its auto loans grew to $92.9 billion on $13.1 billion of originations. Volume on the Global Payment Network, a consumer banking line, was $190.9 billion, up 25% from a year earlier.
Period-end common shares fell to 601.5 million from 613.5 million, and tangible book value per share slipped to $102.72 from $105.21. The company’s release page repeats the $480.7 billion deposit figure and lists $672.9 billion in total assets.
The 2.94% interest-bearing rate is the figure to compare when the next release arrives. A second quarter of lower deposits alongside growing loans would make that comparison sharper.
Is a savings rate the only cost to watch?
A bank’s deposit rate moves the interest a saver earns by fractions of a point, while the costs that strain a fixed income move by hundreds of dollars a year. Part D premiums, utility bills and grocery prices are covered in part by programs that start only when the household applies.
The Benefits Checklist covers 11 benefit programs retirees most often miss, lists the 2026 income limits and adds a 50-state phone directory, with a printable tracker for each application. Extra Help and Medicare Savings Programs are two of the programs it walks through, so the next step after a savings-rate story is a list of household costs to lower.
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
Warren Cohen is a finance writer based in Phoenix, Arizona, covering personal finance topics including credit, banking, and beginner investing. He earned his degree in business administration from Arizona State University and began his career working in consumer finance, where he gained direct experience with lending and credit systems. He now writes for personal finance websites and fintech platforms, focusing on clear, practical content that helps readers make informed financial decisions.
