Several major banks have shut down locations. As a result, more and more people are finding other ways to invest. When Capital One advertised their 360 Savings account, which promised the country's highest interest rates, people jumped at it, only to realize they were allegedly lied to, resulting in a lawsuit.
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Now, New York Attorney General Letitia James is suing Capital One for allegedly cheating people out of millions. She claims that the account, which promised massive interest rates, was actually one of the worst available. She alleges that Capital One hid the true rates and purposefully lied to its customers.
Despite Capital One advertising high interest rates with their 360 Savings account, they were frozen at 0.30% even as interest rates rose nationwide. This resulted in their customers' money actually losing value compared to the US interest rates. If a savings interest rate drops below a country's national interest rate, savings devalue massively.
The lawsuit goes on to claim that investors were further lied to with the launch of the Capital One Performance Saver. This peaked at 4.35% interest. However, the lawsuit claims that customers were not informed about a better way to save. Employees were even advised not to tell customers about the better option.
Capital One Customers Kept In The Dark About Savings
The lawsuit states that "Customers opened and maintained 360 Savings accounts based on Capital One's promises that they would receive 'one of the nation's best savings rates. Instead, Capital One took advantage of its customers and hoped that they wouldn't notice."
Capital One has responded to the lawsuit. They issued a statement. "We strongly disagree with the attorney general's claims and will vigorously defend ourselves in court." They plan to fight their case. They claim that information "has always been available in just minutes to all new and existing customers without any of the usual industry restrictions."
But, when people entrust their money to a bank, they expect their investments to be taken care of. This is why people are opting for other, much more profitable investments instead. Rather than keeping money in banks, ETFs and other funds may be the better option.
