- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Adrianne Appel2025-01-14T19:58:00
Capital One promised very high interest rates on millions of savings accounts but the bank didn’t deliver, losing customers more than $2 billion, the Consumer Financial Protection Bureau (CFPB) alleged.
The more customers a bank has the more money it can potentially earn. So, banks often try to attract new customers by offering higher interest rates than their competitors. Banks earn less money when they pay out higher interest to customers. Banks are bound by federal laws to pay the interest rates promised.
Capital One, which has about $480 billion in assets, purchased online bank ING Direct USA in 2012, which at the time had some of the highest savings interest rates in the nation. In 2013, ING Direct accounts were rolled into Capital One’s “360 Savings” accounts, which Capital One promised would pay the “best” and “highest” interest rates.
But from 2019 to mid-2024, Capital One bank kept the 360 Savings rates at 0.30 percent, well below the average interest rates among big banks, the CPFB said in a complaint, filed Tuesday in U.S. District Court for the Eastern District of Virginia.
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