Capital One has agreed to pay $425 million to settle a major class-action lawsuit involving its legacy 360 Savings accounts. The settlement resolves allegations that the bank misled customers by keeping them in low-interest savings products while offering new customers significantly higher rates through a separate, but nearly identical, account.
The lawsuit centers around the launch of the 360 Performance Savings account in September 2019, which came with an introductory interest rate of around 1.90% APY. In contrast, existing 360 Savings account holders continued earning just 0.30% APY, even as market interest rates and competition increased sharply. The discrepancy eventually reached over 4%, with the newer account offering up to 4.35% APY by late 2023.
Millions of customers were affected by the policy, which the plaintiffs claimed was deliberately hidden from account holders. Internal policies allegedly instructed Capital One employees not to mention the newer, higher-yielding account unless customers specifically asked. This led many to miss out on thousands of dollars in potential interest earnings over several years.
Table of Contents
Two-Part Settlement – Cash and Additional Interest
The $425 million settlement includes two main components: cash compensation for past losses and future interest enhancements for specific customers.
| Settlement Category | Allocation | Purpose |
|---|---|---|
| Cash Payment to Class Members | $300 million | Compensates for missed interest earnings from 2019 to 2025 |
| Additional Interest Fund | $125 million | Provides enhanced interest to eligible account holders going forward |
Anyone who held a 360 Savings account at any point between September 18, 2019, and June 16, 2025, is automatically included in the class. No claim form is required, and payments are expected to begin in late 2025. Class members are encouraged to visit capitalone360savingsaccountlitigation.com to choose between electronic and paper check payment methods.
An added incentive is available for customers who close their 360 Savings accounts by October 2, 2025. Those individuals will receive approximately 15% more in their one-time cash payment. However, closing the account forfeits eligibility for the additional interest payments that ongoing customers will receive.
Legal Action Led by New York Attorney General
The lawsuit is part of a larger legal and regulatory response. In May 2025, New York Attorney General Letitia James filed suit against Capital One, accusing the bank of consumer fraud and deceptive business practices. The complaint alleges Capital One marketed the 360 Savings account as a high-yield product while suppressing knowledge of the better-performing 360 Performance Savings account.
Earlier in the year, the Consumer Financial Protection Bureau (CFPB) also filed a federal lawsuit, estimating that consumers lost $2 billion in interest. However, the CFPB withdrew its complaint in February 2025 following administrative changes. Critics viewed the move as a rollback of accountability, although it did not impact the private class-action case.
The $425 million settlement was announced in June 2025, with official notice to class members distributed in late July. Although Capital One has not admitted to wrongdoing, it agreed to the payout to settle the claims and avoid further litigation.
Important Dates and Deadlines
| Date | Milestone |
|---|---|
| Sept 18, 2019 | Capital One launches 360 Performance Savings with higher APY |
| June 16, 2025 | Final date of class eligibility for affected customers |
| July 2025 | Class members notified of settlement terms |
| October 2, 2025 | Deadline to close the account for 15% cash boost and choose a payment method |
Steps for Affected Customers
Customers who had a 360 Savings account during the eligible period are automatically included in the settlement. However, to ensure timely payment, they should take the following actions:
- Choose a payment method: Electronic deposits are recommended to avoid delays or issues with checks.
- Review account status: Closing the account before October 2, 2025, increases the cash payout but removes eligibility for future interest bonuses.
Customers can expect their payouts to begin once the settlement receives final approval from the court. The case has highlighted broader issues in the financial industry related to transparency and how banks handle legacy products in a changing market environment.
This case is one of the most significant class-action settlements in recent banking history involving interest rate disparities, affecting millions of savings account holders across the United States.
