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Category

🎈
Fun
Transcript
00:00In 2022, banks used a sneaky trick that cost some customers billions in lost interest.
00:06I call it the savings account switcheroo. Normally, when a customer opts to put their
00:11money in a high-yield savings account, they expect that the interest they earn will mirror
00:16national interest rate trends. But in 2022, when the Fed raised interest rates to combat inflation,
00:23some banks had the bright idea to start new high-yield savings accounts that tracked national
00:29trends while letting the old ones languish at low levels. All those people who thought they were in
00:35high-yield savings accounts were not told they needed to switch to keep up with current rates
00:41and missed out on billions of dollars in interest. The Consumer Financial Production Bureau sued Capital
00:46One for this practice in January. A lawyer who represents banks responded that financial institutions
00:52don't owe fiduciary obligations to their customers, basically insinuating that if a customer wants a
00:58high-yield savings account, it's their obligation to be constantly monitoring rates and switching
01:03accounts like a sucker playing three-card money. Fortunately for Capital One, Trump fired the head
01:08of the CFPB in February and ordered all pending litigation frozen.
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