A major legal settlement is underway involving Capital One, the banking giant accused of misleading customers about the interest rates on its 360 Savings accounts. This $425 million class action settlement aims to resolve claims that Capital One kept interest rates artificially low on older savings accounts while offering significantly higher rates on newer accounts, leaving many customers with less earned interest than they deserved.
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Background: What Led to the Settlement?
The Origin of the Lawsuit
The lawsuit arose after allegations surfaced that between September 18, 2019, and June 16, 2025, Capital One froze interest rates on its 360 Savings accounts at a low rate of just 0.3%. Meanwhile, the bank offered a newer product, the 360 Performance Savings account, with rates as high as 4.3%.
In 2024, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit accusing Capital One of deceptively marketing the older 360 Savings account as “high interest” and “one of the nation’s best” without disclosing the better rates available through the 360 Performance Savings account. The CFPB estimated that customers lost over $2 billion in interest due to this practice. Although the CFPB dropped its case earlier this year, a separate class action lawsuit continued, culminating in the $425 million settlement.
Capital One’s Response
Capital One has denied any wrongdoing but agreed to the settlement to avoid prolonged litigation. The bank will pay $425 million to eligible customers, offering some restitution for the lost interest.
Who Is Eligible for the Settlement?
Eligibility Criteria
If you are a current or former Capital One customer who held a 360 Savings account at any point between September 18, 2019, and June 16, 2025, you may be eligible for compensation. Accounts that were converted to the 360 Performance Savings account by October 2, 2025, will be considered closed for the purposes of this settlement.
What You Need to Know About Account Status
- Open Accounts: Customers who still hold a 360 Savings account could receive enhanced interest payments.
- Closed Accounts: Those who closed or converted their accounts during the eligible period may be entitled to a one-time payment.
How Much Money Could You Receive?
Breakdown of the $425 Million Settlement
- $300 Million: This portion will be distributed as one-time payments to eligible account holders. The amount each person receives depends on how much additional interest they would have earned if their 360 Savings account had paid the higher 360 Performance Savings rates during the eligible period.
- $125 Million: This will fund higher interest payments for customers who currently maintain 360 Savings accounts. Capital One has committed to paying at least twice the national average savings rate for a specified period, with this fund covering the difference between the higher payout and the national average rate.
How to File Your Claim and Get Paid
Steps to Submit Your Claim
Eligible customers should submit their claims by October 2, 2025. Claims can be filed through the official settlement website dedicated to this case.
Important Details About the Claims Process
- You do not need to submit a claim to receive a payout if you have received a settlement notice.
- To select your payment option, you will need the ID and four-digit PIN found on your settlement notice.
- The deadline to choose your payment option online is October 2, 2025.
Payment Methods and Minimum Amounts
- Paper checks will not be issued if the payout amount is less than $5.
- Electronic payments will be made regardless of the payout amount, providing a more reliable way to receive smaller payments.
When Will Payments Be Made?
The settlement requires final approval from the court, with a hearing scheduled for November 6, 2025. Once approved, the official settlement website will update eligible customers on payment timelines and further instructions.
What This Means for Capital One Customers
This settlement represents a significant win for customers who were affected by Capital One’s controversial savings account practices. If you qualify, this is your chance to recover lost interest and benefit from improved interest rates moving forward.
Stay Informed and Act Promptly
To ensure you do not miss out on this opportunity, check if you are eligible and file your claim before the October 2 deadline. Visit the official settlement website for the most accurate and up-to-date information.