Capital One Customers Eligible for Settlement Payouts; Close Accounts Before Oct. 2 for Larger Checks

Capital One is facing a class-action lawsuit alleging it misled customers by freezing the interest rate on its 360 Savings account while offering a higher-paying option. Customers who held the account between 2019 and 2025 are eligible for a payout, with larger settlements for those who close their accounts by Oct. 2. The payout amount depends on the amount and duration of the account. Closing the account by Oct. 2 can result in a larger settlement check, but customers will miss out on higher APYs elsewhere.

Capital One is facing a class-action lawsuit alleging it misled customers by freezing the interest rate on its 360 Savings account while offering a higher-paying option. The lawsuit, filed in Virginia federal court, accuses the bank of concealing details of a new product from legacy savings account holders. The plaintiffs argue that Capital One failed to pay the same interest rate to 360 Savings account holders as it did to 360 Performance Savings account holders after the bank launched the new account on September 18, 2019 [2].

The interest rate disparity grew over time. While the 360 Performance Savings account rate climbed to 4.35% as the Federal Reserve raised interest rates, the original 360 Savings rate fell to 0.30% in late 2020 and stayed there [1]. This led to a significant interest rate gap between the two accounts, which the lawsuit alleges deprived millions of people of billions in interest they should have earned.

In response to the lawsuit, Capital One agreed to a $425 million settlement without admitting wrongdoing. The settlement includes $300 million in pro-rata payments to class members based on the amount of interest they would have earned if their 360 Savings account had paid the same interest rate as 360 Performance Savings accounts. The remaining $125 million will represent additional interest payments to those who continue to hold the legacy savings account product [2].

Customers who held the 360 Savings account between September 18, 2019, and June 16, 2025, are eligible for a payout. However, closing the account by October 2, 2025, can boost the payout by about 15%, according to Capital One. The payout amount depends on the amount and duration of the account [1]. For example, a customer with a $10,000 average balance over three years could receive up to $13,463 if they close their account by October 2 [1].

Those who keep their account open will receive a reduced payout, with the settlement setting the future interest rate at only twice the national average. This makes it a no-brainer for many to close their 360 Savings account and move their savings elsewhere [1].

Eligibility for the settlement is automatic, based on Capital One’s account records, and no claim form is required. However, customers must act to receive the larger payout. Simply closing the account by October 2 will qualify for a check that is about 15% larger. Customers can request faster electronic payment once settlement distributions begin [1].

The settlement agreement must be approved by a judge for it to take effect. The formal settlement agreement will be filed by June 6, along with the plaintiffs’ motion seeking preliminary approval [2].

References:
[1] https://www.investopedia.com/why-you-may-want-to-close-your-capital-one-account-before-oct-2-11805626
[2] https://topclassactions.com/lawsuit-settlements/lawsuit-news/capital-one-agrees-to-425m-settlement-in-savings-account-interest-rate-class-action/