**An FDIC-insured money market deposit account at an online bank has the same protection against bank failure as one at a bank with branches.** FDIC coverage is $250,000 per depositor, per insured bank, per ownership category, including accrued interest. Your accounts in the same ownership category at that bank count toward that limit together. [FDIC coverage rules](https://www.fdic.gov/deposit-insurance/your-insured-deposits-brochure-english)

Capital One’s money market account is a bank deposit. Make sure the offer is for a **money market deposit account**: money market *mutual funds* are investments and aren’t FDIC-insured. [FDIC: insured financial products](https://www.fdic.gov/resources/deposit-insurance/financial-products-insured)

The main downsides to check are:

- **The rate can fall.** Capital One’s money market disclosures say rates are variable. Check how long the promotion lasts and what rate applies afterward.
- **The $10,000 condition matters.** Confirm whether the advertised rate applies to your entire balance or only the portion above $10,000, and what happens if your balance falls below the threshold.
- **Access and fees.** Check deposit holds, transfer limits, and any charges. Capital One’s disclosures allow limits on external transfers and list fees for some services. [Capital One account disclosures](https://www.capitalone.com/bank/disclosures/savings-accounts/online-money-market-account/)
- **Taxes and inflation reduce the benefit.** Bank interest is generally taxable for U.S. taxpayers. If inflation exceeds your after-tax yield, your money loses purchasing power. [IRS interest-income guidance](https://www.irs.gov/taxtopics/tc403)

If the offer means **1.00% APY on your whole balance**, $10,000 earns $100 over a year, assuming the balance and APY stay unchanged, before taxes and fees. I couldn’t verify your particular promotion, so check its written terms and compare APYs before committing.