CFPB Sues Capital One Over Interest Payments. Why You Should Track Your Savings Account APY
this Consumer Financial Protection Bureau Prosecuting capital one Suspected of misleading customers High Yield Savings Account and defrauded them of nearly $2 billion in interest.
Capital One, the ninth-largest U.S. bank, promoted its 360 Savings account as one of the banks’ highest annual yields, the CFPB said in a statement Tuesday. However, after launching the 360 ​​Performance Savings account in 2019, Capital One lowered and froze the account’s annual interest rate on savings, the CFPB said.
Savings accounts with similar names are identical except for the different interest rates. At one time, the 360 ​​Performance Savings account had an annual interest rate of 4.35%, which was 14 times higher than the 360 ​​Savings APY of 0.3%. Capital One eventually stopped offering 360 Savings accounts to new customers. The CFPB said the bank failed to notify existing account holders of the new savings account option, leading them to believe they were still receiving one of the highest savings rates.
The CFPB seeks Capital One fines and damages in the lawsuit.
“We strongly disagree with their assertions and will vigorously defend ourselves in court,” a Capital One spokesperson told CNET in an email. The bank said its 360 Performance Savings accounts were held on simple and transparent terms Extensive marketing.
High Yield Savings Account Offers VariableAPYmeaning they fluctuate based on economic and other factors. To ensure you’re getting the best interest rate on your savings account, experts recommend regularly reviewing your APY and comparing it to other available options. You can find your savings account’s APR on your bank statement or by visiting your account online.
Capital One’s 360 Performance Savings account currently offers 3.80% APY, which is in line with competitors Interest-bearing savings account. Ally Bank currently offers 3.80% APR, Marcus by Goldman Sachs offers 3.90% APR, and Discover offers 3.75% APR. Some online banks and credit unions still offer high-yield savings accounts with annual interest rates above 4%. If you’re not earning a competitive APR on your savings, check out the best of CNET High Yield Savings Account Options Find the best prices.
