Capital One has agreed to a $425 million settlement to resolve a class-action lawsuit filed over its 360 Savings account. The lawsuit alleged that the bank kept millions of customers on significantly lower interest rates than market rates for nearly six years. The complaint stated that interest rates on older accounts were frozen, while new accounts were advertised with higher rates.
From September 2019 to June 2025, the 360 ​​Savings account offered only a 0.3% interest rate, even as the Federal Reserve raised rates multiple times. In contrast, Capital One’s 360 Performance Savings account reached up to 4.3% by 2022. The Consumer Financial Protection Bureau (CFPB) estimated that customers potentially lost approximately $2 billion in interest earnings during this period.
Although the CFPB closed its enforcement case in early 2025, the class-action lawsuit continued, ultimately leading to this significant settlement. The distribution of payments will begin after final court approval.
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Why Capital One Settled
The lawsuit centered on allegations that the bank advertised the 360 ​​Savings account as a high-interest product but failed to inform existing customers about alternative options. Customers alleged that the bank kept interest rates on older accounts below market rates while offering more competitive rates on new accounts.
Capital One denied any wrongdoing but chose to settle to avoid a lengthy legal battle, mitigate reputational damage, and ensure a resolution for affected customers. The $425 million allocation is intended to compensate customers for past losses and implement safeguards for fair banking practices in the future.
Who Will Receive a Settlement
The settlement covers a broad group of customers, including both current and former account holders. Anyone who held a Capital One 360 ​​Savings account between September 2019 and June 2025 is eligible.
Eligibility Details
| Requirement | Details |
|---|---|
| Account Type | Capital One 360 Savings account |
| Period Covered | September 18, 2019 – June 16, 2025 |
| Eligible Parties | Current and former account holders |
Even customers who closed their accounts before 2025 are eligible if they held an account during the affected period.
How Payments Will Be Calculated
The settlement is divided into two main parts—first, customers will be reimbursed the difference between the actual interest they earned and the interest they should have earned on their high-interest 360 Performance Savings account. Second, safeguards will be implemented to prevent future interest rate discrepancies.
Compensation Framework
| Compensation Type | Details |
|---|---|
| Back Payments | Lost interest earnings compared to Performance Savings account |
| Future Safeguards | Ensure rates are at least 2x FDIC national average |
This two-pronged approach aims not only to compensate for financial losses but also to prevent potential discrepancies in the future.
Settlement Timeline and Important Dates
The legal settlement process has specific dates that customers should be aware of:
- October 2, 2025 – Deadline to file a claim, objection, or opt out of the settlement.
- November 6, 2025 – Court hearing for final approval.
- Post-Approval—Payment distribution begins, with funds deposited directly into accounts via direct deposit.
It is crucial to remember these dates. Missing any deadline may result in the loss of the right to claim.
Steps for Customers
The claims process is simple and automated. There is no need to fill out lengthy forms. Customers simply need to confirm their details to ensure accurate payment.
- Review the settlement notice sent via email or mail.
- Visit the official settlement website to check eligibility and payment details.
- Stay informed about court decisions and payment schedule updates.
This process ensures that as many people as possible are eligible for payment and that affected individuals receive fair compensation.
Key Message for Consumers
This Capital One case highlights the importance of staying informed about financial products. Many customers assumed their account was competitive and failed to compare market rates, resulting in significant losses.
While this settlement provides direct relief, it also serves as a crucial lesson for consumers: always monitor your accounts, review interest rate updates, and compare them with other products in the market.
FAQs
Q. Who is eligible for the Capital One settlement?
A. Anyone who held a 360 Savings account between September 18, 2019, and June 16, 2025, including current and former account holders.
Q. How is compensation calculated?
A. Customers will be reimbursed for lost interest compared to the 360 Performance Savings account and future rates will be at least twice the FDIC national average.
Q. Do I need to submit a claim?
A. No, the claims process is mostly automatic, but you should verify your account details for accurate payment.
Q. When will payments be distributed?
A. Payments will be sent after the court grants final approval, expected after November 6, 2025.
Q. Can former account holders still receive payment?
A. Yes, as long as they held a 360 Savings account during the covered period.
