CapitalOne Sued for Deception Over 360 Savings Rate versus 360 Performance Savings Rate
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CapitalOne Sued for Deception Over 360 Savings Rate versus 360 Performance Savings Rate - 2024

A lawsuit has been filed by customers of CapitalOne Bank alleging that the bank engaged in deceptive tactics with its 360 Savings customer base in 2022 and 2023. The plaintiffs assert that when CapitalOne began offering the 360 Performance Savings account as interest rates began increasing in 2022 and then into 2023, it did not notify its existing customers that a higher rate from a similar sounding product was available. Full details of the lawsuit are available on Yahoo! here.

The lawsuit may be of interest to any customer who lost significant amounts of interest by failing to switch from a 360 Savings account to a 360 Performance Savings account in 2022 when the latter began being offered, as the Plaintiffs attorneys are presumably intending to obtain the complete list of account holders and then seek class action status.

However, as a former attorney, I would suggest that those customers not to get too excited about their prospects for any recovery.

As the Yahoo! article points out, offering a higher rate to one customer than to another is engaged in frequently, and has been also been a practice of BrioDirect and UFB Direct. Popular Direct, Vio Bank and VirtualBank are other online banks that have engaged in this process over the 2022 - 2023 time period. Salem Five Bank has engaged in this practice for years. To boot, many banks, including Capital One, will extend better rates to their online customers than they do to branch customers. Bank can offer higher (or lower) rates to customers who are members of an affinity organization (like AARP), or to those buying brokered products (like those customers purchasing a brokered CD or arriving through a deposit consolidators like Raisin. In short, banks have the right to segment their markets and do not need to offer all customers the same rate.  It may not be good business, but it is well within their legal rights.

Since this case is not going to be successful on the basis of a contractual obligation (i.e., a violation of the terms and conditions), it is going to need to depend on some sort of affirmative and active intent on the part of CapitalOne to deceive its customers. Stranger things have happened in courts and in the process of discovery, but it seems like a difficult burden for the plaintiffs to meet. Statements were made available to customers online and by mail monthly that fully disclosed the rate and the interest earned. Even a cursory review should have made clear to customers that they were not earning the 3% or 4% Performance rate. The product is also differentiated by the use of the word Performance.

The law does not guarantee you the right to earn the highest savings or money market rate that is available, even from a bank that you may feel good about and may have been working with for decades.  Rather, you need to constantly review your statements are be aware of the interest rates that you are earning in all of your accounts. Fortunately, it is easy to check sites like BestCashCow - and competing sites like - to be sure that you are getting the most competitive savings and money market rates in the market.

Compare savings rates here.

Compare CD rates here.

Ari Socolow
Ari Socolow: Ari Socolow is the Chief Economist and Editor-in-Chief at BestCashCow. He is particularly interested in issues relating to bank transparency and the climate crisis. Since co-founding BestCashCow in 2005, Ari has been frequently cited in the media as an expert on local and national savings accounts, CD products, mortgage and loan products and credit card rewards products.

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