The Consumer Financial Protection Bureau is suing Capital One for allegedly misleading customers about its high-yield savings account options and cheating them out of close to $2 billion in interest.Â
Capital One, the ninth largest bank in the US, marketed its 360 Savings account as having one of the highest annual percentage yields, the CFPB said in a statement Tuesday. However, after launching its 360 Performance Savings account in 2019, Capital One lowered and froze the account's savings APY, the CFPB said.
The similarly named savings accounts were identical, except for their interest rates. At one point, the 360 Performance Savings account rate was 4.35% APY, 14 times higher than the 360 Savings APY of 0.3%. Capital One eventually stopped offering its 360 Savings account to new customers. The bank did not inform existing account holders about the new savings account option and led them to believe they were still getting one of the highest savings rates, the CFPB said.
The CFPB is seeking fines and restitution from Capital One in the suit.Â
"We strongly disagree with their claims and will vigorously defend ourselves in court," a Capital One spokesperson told CNET in an email. The bank said its 360 Performance Savings account was widely marketed with simple and transparent terms.
High-yield savings accounts offer variable APYs, which means they fluctuate based on the economy and other factors. To make sure you're getting the best interest rate on your savings account, experts recommend reviewing your APYs regularly and comparing them to other available options. You can find your savings account's APY on your bank statement or by visiting your online account.
Capital One's 360 Performance Savings account currently offers 3.80% APY, on par with competitors' interest-earning savings accounts. Ally Bank currently offers 3.80% APY, Marcus by Goldman Sachs offers 3.90% APY and Discover offers 3.75% APY. Some online banks and credit unions are still offering high-yield savings account APYs above 4%. If you're not earning a competitive APY on your savings, check out CNET's best high-yield savings account picks to find the best rates  available.
