CFPB Sues Capital One Over Interest Payments. Why You Should Track Your Savings Account APY

Core Viewpoint - The Consumer Financial Protection Bureau (CFPB) is suing Capital One for allegedly misleading customers regarding its high-yield savings account options, resulting in nearly $2 billion in lost interest for customers [1]. Group 1: Allegations Against Capital One - Capital One, the ninth largest bank in the US, marketed its 360 Savings account as having one of the highest annual percentage yields (APY) [2]. - After the launch of the 360 Performance Savings account in 2019, Capital One lowered and froze the APY for the 360 Savings account [2]. - The 360 Performance Savings account had an APY of 4.35%, which was 14 times higher than the 360 Savings APY of 0.3% [3]. Group 2: Customer Communication Issues - Capital One did not inform existing account holders about the new 360 Performance Savings account option, leading them to believe they were still receiving one of the highest savings rates [3]. - The bank eventually stopped offering the 360 Savings account to new customers [3]. Group 3: Legal Response and Current Offerings - The CFPB is seeking fines and restitution from Capital One in the lawsuit, while Capital One has stated it strongly disagrees with the claims and will defend itself vigorously in court [4]. - Currently, Capital One's 360 Performance Savings account offers an APY of 3.80%, which is competitive with other banks [6].