Capital One Settles For $425 Million Over Misleading Savings Rates

ST. PAUL (WJON News) -- A large banking firm has agreed to a settlement for misleading customers on interest rates. Capital One has agreed to provide $425 million in restitution and better interest rates for its 360 Savings customers. According to Attorney General Keith Ellison, Capital One marketed its 360 Savings accounts as "high interest" with "one of the nation's best savings rates."

However, in 2022, when interest rates rose nationwide, Capital One kept 360 Savings rates artificially low and created "360 Performance Savings," a nearly identical type of savings account that provided higher rates than 360 Savings. At one point, the interest rate was 14 times higher. Minnesota was one of 18 states that opposed an earlier settlement for the class action lawsuit that Ellison says was "unfair to Minnesota consumers who were falsely promised high-yield savings accounts by Capital One."

The settlement will also require Capital One to match 360 Savings and 360 Performance Savings interest rates, thereby removing the misleading two-tiered system and provide an estimated $530 million to customers nationwide in future additional interest.

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Gallery Credit: Bethany Adams