![]() How Capital One 360 Worksīetween Capital One ATMs and partner ATMs, you have access to over 70,000 ATMs nationwide. Your only option here is a regular term CD. Some banks offer more types of CDs, such as a no-penalty or jumbo CD. Capital One does set itself apart by not requiring an initial deposit to open a CD - most banks ask for at least $500. ![]() The institution's CDs come with term lengths ranging from six months to five years. The bank wrote that the description of its accounts as offering "high" interest "is too vague and subjective to be an actionable misrepresentation.Show Pros, Cons, and More chevron down icon An icon in the shape of an angle pointing down.Ĭapital One CD rates are pretty competitive, but you still might find the best CD rates with other online banks. In their lawsuit, the plaintiffs said that between 20, Capital One advertised the 360 Savings account as a "high-interest" account, and that it later used similar language to describe the 360 Performance Savings account.Ĭapital One, in its filings last week, noted that the plaintiffs did not allege that Capital One promised to pay any specific rate. "On the contrary, they allege that Capital One advertised the Performance Savings account on its website …" "Nor do they allege any facts showing that Capital One did anything to prevent them from learning about, or switching to, the Performance Savings account," the bank wrote in its motion to dismiss the lawsuit. The lawsuit, which is seeking class-action status, alleges that Capital One violated certain state laws in Illinois, Virginia, Massachusetts and Pennsylvania that deal with consumer protection and deceptive business practices.Ĭapital One also noted that the plaintiffs did not point to any contractual provision that required the bank to notify 360 Savings customers about the creation of, or the existence of, the 360 Performance Savings account. In its court filing last week, Capital One made a series of legal arguments in support of its claim that the suit should be thrown out.Īmong those arguments is the idea that the plaintiffs are seeking to use state law in a way that would significantly interfere with Capital One's ability to receive deposits, which is a federally granted power. Since the Federal Reserve began hiking interest rates last year, certain other online banks have also required existing savings account holders to establish new accounts in order to receive the best possible rate. ![]() "If I had any idea that they were playing these games, I'd just set up another account." "I nearly threw up," Mishkin said in an interview. The article led him to discover that he, too, has been receiving low returns, rather than the much more competitive rate advertised by Capital One for the 360 Performance Savings account, he said. Gregory Mishkin, a longtime Capital One savings account holder who lives in the Atlanta area, learned about the lawsuit last week from an American Banker article. But the plaintiffs argued that the bank exercised its discretion unfairly, and that 360 Savings customers who went to the Capital One website and saw prominent ads for high rates on 360 Performance Savings accounts could be deceived into thinking that they were getting those rates. The lawsuit acknowledged that Capital One has the right to change the interest rates it pays. The conduct at issue in the suit began in 2019, when Capital One started offering an account called "360 Performance Savings." As of last month, 360 Performance Savings customers were receiving 4.30%, while 360 Savings customers were getting 0.30%, according to the complaint. After Capital One bought ING Direct in 2012, customers' savings accounts became 360 Savings accounts. ![]() The lawsuit, which Capital One disclosed in a securities filing earlier this month, was filed by customers who initially opened accounts at ING Direct USA. "Plaintiffs' request is legally unsupported, could have far-reaching and untenable consequences if granted by this Court, and should be rejected outright," Capital One argued in its motion. ![]()
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