Capital One is set to pay $425 million to settle a class action lawsuit brought by customers over issues related to its 360 Savings account. Filed in 2024, the lawsuit alleges that Capital One misled customers by freezing interest rates on its original 360 Savings accounts while offering much higher rates on a nearly identical, newer account called 360 Performance Savings. The settlement is awaiting court approval, but here is everything you need to know about eligibility, payouts, and what this means for savers.
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Background: What Led to the Lawsuit Against Capital One?
In February 2019, Capital One launched the 360 Savings account, promoting it as a high-interest savings product. However, by September of the same year, the bank quietly discontinued offering this account to new customers and replaced it with the 360 Performance Savings account, which initially offered a higher interest rate.
Over time, especially starting in 2022 when the Federal Reserve began raising interest rates, the 360 Performance Savings account’s annual percentage yield soared to 4.3 percent, while Capital One kept the original 360 Savings account rates frozen at a low 0.3 percent.
The lawsuit alleges that Capital One never notified existing 360 Savings account holders about the new, higher-yielding account, nor did it automatically move customers to the better option. Instead, many customers continued to earn significantly less interest despite rising rates elsewhere. The suit claims that this practice cost Capital One customers more than two billion dollars in lost interest between 2019 and 2025.
The Consumer Financial Protection Bureau also filed a related lawsuit, accusing Capital One of deliberately hiding the new account from existing customers and forbidding employees from proactively informing them.
Though Capital One denies any wrongdoing, it has agreed to the settlement to resolve the dispute.
Who Is Eligible for a Payout From the Settlement?
Both current and former customers who held a Capital One 360 Savings account at any point between September 18, 2019, and the date the court approves the settlement are eligible. This means if you had such an account during that period, you may receive compensation without needing to file a claim.
Eligible customers will receive payments automatically. However, those who want to select a specific payment method or update their address should visit the official Capital One 360 Savings Account Litigation website by October 2, 2025.
How Will the $425 Million Settlement Be Distributed?
The settlement funds will be divided into two parts:
- $300 million will reimburse customers for the difference between the interest they earned on the original 360 Savings account and what they would have earned if their accounts had received the 360 Performance Savings rates during the same period.
- $125 million will be allocated to current 360 Savings account holders, increasing their interest rates to at least double the national average rate for savings accounts, as defined by the FDIC.
The payout amount will depend on how long you held the account, your balance, and the interest rate differences during your ownership period.
Should You Close Your Account or Keep It Open?
If you close your 360 Savings account by October 2, 2025, or have already closed it, your settlement payment could be about 15 percent higher. Conversely, keeping the account open means a smaller immediate payout but qualifies you for ongoing higher interest payments.
Deciding which option is better depends on how long you held the account and your average balance. For those with large balances or who have held the account for an extended period, keeping it open to benefit from increased interest rates might be more advantageous.
When Will Payments Be Made?
The court is expected to rule on the settlement approval by November 6, 2025. After approval, Capital One will begin issuing payments. If you are eligible, a physical check will be mailed to your last known address unless you specify an alternative method before the October 2 deadline.
What This Means for Savers
This lawsuit serves as an important reminder for all consumers to stay vigilant with their finances. Even accounts labeled as “high yield” can have variable rates, and banks may change terms without clear notice.
To maximize your savings returns, it is wise to:
- Regularly compare rates across banks and financial institutions.
- Consider Certificates of Deposit (CDs) for fixed interest rates over a set term.
- Watch for fees and account minimums that may reduce overall returns.
- Be proactive about switching accounts to better rates when available.
Conclusion
The Capital One 360 Savings account settlement offers eligible customers an opportunity to recover lost interest and benefit from improved future rates. Whether you choose to keep your account or close it, staying informed about your savings options is essential to making the most of your money.
If you held a Capital One 360 Savings account between 2019 and 2025, watch for official updates and consider your options before the October 2, 2025 deadline to ensure you receive the full benefits of this settlement.