A substantial $425 million settlement has been finalized by Capital One following allegations that the financial institution deceptively marketed its 360 Savings accounts. Eligible customers will receive automatic cash payments without needing to file a claim.
The class action lawsuit, officially titled "In re: Capital One 360 Savings Account Interest Rate Litigation," centered on accusations that Capital One maintained artificially low interest rates on its 360 Savings accounts for years, while simultaneously offering higher rates on its similarly named 360 Performance Savings accounts. Customers who held a Capital One 360 Savings account between September 18, 2019, and June 16, 2025, are considered eligible for this payout.
Payouts and Account Adjustments
Payments to eligible customers are expected to be distributed once the settlement takes effect. The amount each customer receives will be determined by factors such as the duration of their account ownership, the balance held within the account, and the total number of individuals included in the class. This revised settlement follows an earlier proposal that was rejected, partly because it did not adequately compensate customers for lost interest or clearly inform them about alternative, higher-yielding accounts.
Beyond the payouts, the settlement mandates that Capital One immediately begin offering the interest rate associated with its 360 Performance Savings account to all 360 Savings account holders. This adjustment aims to ensure that customers who were allegedly kept in the dark about better-earning options will now benefit from higher yields. Some current 360 Savings account holders may also see their future Annual Percentage Yield (APY) boosted.
Background of the Litigation
The legal action consolidated several lawsuits against Capital One, arguing that the bank had engaged in misleading practices. Allegations included failing to increase savings account interest rates in line with market trends and with rates offered on its own 360 Performance Savings account. Furthermore, it was claimed that Capital One concealed the existence of the higher-yielding 360 Performance Savings account and its associated rates from customers holding the 360 Savings account. This created a situation where customers believed they were receiving competitive returns, when in reality, they were missing out on significant interest earnings, potentially amounting to billions of dollars collectively.
Read More: Costco, FedEx Sued by Consumers for Unlawful Tariff Refunds
