The Wall Street Journal writes, "They Thought Their Money Was in High-​Interest Accounts—​They Got Paid Peanuts." Subtitled, "Capital One says its savings account pays 4.​35%, but not all customers are getting that," it says, "David Fucillo built up his emergency fund over the years with direct deposits into a savings account at Capital One Financial with above-​average interest rates. Last fall, he realized the account was no longer paying him much of anything, even though broader rates were up dramatically. The 44-​year-​old editorial-​content manager'​s five-​figure balance was earning just 0.​3%. 'I probably missed out on over $​1,​000 a year,' he says. Fucillo isn'​t alone. When the Federal Reserve started raising interest rates in 2022, many customers of the McLean, Va., bank assumed their rates would go up. Instead, Capital One is paying them far below the 4.​35% it advertises on its main savings account." The Journal explains, "In 2019, the lender introduced a new savings account called 360 Performance Savings. Existing customers were kept in older accounts that had a similar name, 360 Savings, which the bank previously advertised as having '​a great rate' but has since closed to new customers. When the Fed started its rate increases, Capital One only raised rates on 360 Performance Savings accounts. Customers around the country who have the older accounts are complaining about the discrepancy to the Consumer Financial Protection Bureau, according to a Wall Street Journal review that found two dozen complaints detailing experiences similar to Fucillo'​s in the agency'​s database." The piece adds, "The ninth-​largest bank in the country, Capital One is a big credit-​card issuer and has a huge savings-​account business. More than 60% of the bank'​s $​316 billion in interest-​bearing deposits are savings deposits, which include money-​market accounts that currently pay consumers 0.​8%. The bank paid an average rate of 3.​02% on savings deposits in the third quarter, a figure that includes commercial and small-​business deposits, it said in a securities filing. The rate on the 360 Performance Savings account is in line with those offered by high-​yield banking competitors such as Ally Financial and Goldman Sachs. They all pay far more than what the biggest banks -- including JPMorgan Chase and Bank of America -- offer on their standard savings accounts."

Your Name:
Your Email:
Recipient Email(s):

Use a comma or a semicolon to separate

Please retype symbols from the image:

Optional Message

Daily Link Archive