Virginia, US: Capital One has agreed to pay $425 million in a class action settlement that affects customers who held its 360 Savings account between September 18, 2019, and June 16, 2025. This settlement resolves allegations that the bank deceptively managed interest rates on these accounts, causing many account holders to miss out on potentially billions in interest earnings.
What Happened with Capital One’s 360 Savings Accounts?
Capital One introduced the 360 Savings account as a high-yield option promoted for its attractive interest rates. However, around September 2019, the bank quietly launched a new product called the 360 Performance Savings account that offered significantly higher interest rates—up to 4.3% APY when the Federal Reserve began raising rates in 2022. Despite this, Capital One left existing 360 Savings account holders on lower, frozen interest rates as low as 0.3%, while new customers could open the higher-yield 360 Performance Savings account.
The core of the lawsuit was that Capital One did not notify existing 360 Savings customers about the new, better-paying account and did not automatically convert their accounts to the better rates. The bank also removed references to the original 360 Savings account from its website, causing customers to mistakenly believe that the 360 Performance Savings account was simply a rebranding rather than a separate, more lucrative product.
As a result, customers holding the older accounts missed out on over $2 billion in interest payments according to claims made in the case.
The Settlement Terms Explained
Capital One agreed to a $425 million payout divided into two main parts:
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$300 million will be paid out to customers who held 360 Savings accounts during the class period to compensate for the difference in interest they would have earned if their accounts had received the same rates as the 360 Performance Savings accounts. This payout is calculated based on how long customers held the account and the rate differentials during that time.
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$125 million will be allocated to customers who still maintain their 360 Savings accounts. Going forward, these accounts will earn at least double the national average interest rate for savings accounts, as set by the Federal Deposit Insurance Corporation (FDIC). This means these customers will see higher ongoing interest payments as part of the settlement.
Customers who close their 360 Savings accounts before October 2, 2025, are expected to receive roughly 15% higher lump-sum payouts than those who keep the account open. However, keeping the account open offers the benefit of enhanced interest payments, which might outweigh the lump sum difference depending on the balance and time frame.
Who Qualifies for the Payout?
All individuals or entities who had a Capital One 360 Savings account at any point between September 18, 2019, and June 16, 2025, including joint account holders, are eligible for payments from the settlement. There is no need to file a claim; eligible customers will automatically receive payments based on Capital One’s records.
For those who still have an open 360 Savings account, the additional interest will be deposited directly into their accounts as part of the settlement’s ongoing benefits.
Next Steps and Payment Distribution
The settlement is currently pending final court approval, scheduled for November 6, 2025. Following court approval, Capital One will begin distributing payments within 60 days.
Eligible account holders will receive notification by mail or email, with options to select payment methods if they wish. If no election is made, payment will be sent as a physical check to the last known address of the customer.
Capital One’s Response
Capital One denies any wrongdoing but agreed to the settlement to resolve the class action lawsuit and move forward. Alongside the payout, the bank has committed to maintaining competitive interest rates on the 360 Savings accounts under the settlement terms.
What This Means for 360 Savings Users
For users of the Capital One 360 Savings account, this settlement brings a financial restoration of missed interest and improved future returns on their savings. Customers who stayed with the older account type will finally see their accounts earn more competitive yields, rectifying a multi-year discrepancy in earnings.
Customers should review their accounts, watch for official settlement notifications, and decide whether to keep their accounts open based on their personal financial considerations.
In essence, the $425 million settlement is a significant win for thousands of Capital One savings customers who felt sidelined by the bank’s interest rate policies. It underscores the importance of transparency in banking products and the power of consumer protection through class action litigation.
This landmark settlement sets a precedent for how financial institutions must treat legacy accounts when launching new products with different terms, ensuring fairness and equitable treatment for all customers.
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