Capital One 360 Savings Account Lawsuit Settles for $425M Amid Interest Rate Discrepancies

In a significant legal development, Capital One has agreed on a $425 million settlement to address a class action lawsuit involving its 360 Savings accounts. Customers who held a Capital One 360 Savings account between September 18, 2019, and June 16, 2025, are eligible to receive compensation based on the allegations that the financial institution failed to adjust interest rates in line with those offered on new accounts, specifically the 360 Performance Savings account.

The lawsuit, filed in 2024 in the U.S. federal court in Alexandria, Virginia, claims that Capital One's marketing of the 360 Savings account as a high-interest product was deceptively misleading. The 360 Savings account maintained a low interest rate of 0.3%, while the newer 360 Performance Savings accounts climbed to a maximum of 4.3% following rate hikes by the Federal Reserve. The Consumer Financial Protection Bureau (CFPB) also pursued litigation against Capital One, alleging deceptive practices and claiming consumers missed out on upwards of $2 billion in lost interest. Despite the CFPB dropping its lawsuit in February, the class action persisted.

The $425 million settlement will be distributed in two main components. $300 million will be allocated for cash payments to class members based on what they would have earned if their accounts mirrored the interest rates of the newer 360 Performance Savings accounts. The remaining $125 million is earmarked for additional interest for those who maintain their 360 Savings accounts, ensuring these accounts now offer interest rates at least twice the national average for savings deposit accounts, as calculated by the Federal Deposit Insurance Corporation (FDIC).

Eligible customers do not need to submit a claim form as payments will be automatically distributed. However, those who wish to object to the settlement can do so by October 2, 2025. The final court approval hearing is scheduled for November 6, 2025.

Capital One has not admitted any wrongdoing in the settlement but has agreed to resolve the class action allegations, providing restitution both in direct payments and adjusted interest rates. Account holders have the option to receive their payments via check or electronic transfer, with larger payouts available to those who close their accounts before the designated deadline.

This case highlights important concerns regarding transparency and fairness in financial product marketing and management, as Capital One's case illustrates the significant impact of account structure and interest rate discrepancies on consumer savings. As the financial industry continues to navigate complex regulatory requirements, accountability and consumer protection remain crucial issues for major institutions.

Individuals with the affected accounts should monitor the official settlement website for updates and actions required to ensure receipt of their entitled compensation. The settlement stands as a reminder of the ongoing need for diligence and responsiveness in addressing consumer grievances within the banking sector.