Capital One has reached a significant milestone, as a judge has approved a class-action settlement amounting to $425 million, potentially benefiting millions of its customers.
The lawsuit asserted that Capital One did not adjust the interest rates on its 360 Savings accounts in accordance with the rates of its newly introduced 360 Performance Savings accounts, which were launched in 2019. It also accused the bank of promoting the older accounts as high-yield options without adequately informing customers about the existence of a higher-interest account.
At its peak, the annual percentage yield (APY) on the 360 Performance Savings accounts was 4.3%, in contrast to the 0.3% APY offered on the 360 Savings accounts.
New York State Attorney General Letitia James remarked in May 2025 that “Capital One assured high returns with no catches, then pulled the rug out from under their customers and hoped nobody would notice,” following the lawsuit announcement.
Though the bank has denied any wrongdoing, the settlement is the culmination of almost two years of legal proceedings. A U.S. District Court judge initially turned down a proposed agreement in November, citing insufficient compensation for account holders. The settlement was later renegotiated, and Judge David Novak from the Eastern District of Virginia granted final approval earlier this week.
Eligibility for Settlement
Customers who maintained a Capital One 360 Savings account from September 18, 2019, to June 16, 2025, are deemed eligible for payouts, as specified on the settlement website.
Eligible account holders were not required to submit a claim for payment but did need to select a payment method by March 30. Those who failed to make a selection will receive a check if their payout exceeds $5.
Payments will be allocated solely to the primary account holder on qualifying 360 Savings accounts and will depend on the interest that would have been accrued had the funds been in a 360 Performance Savings account. The payout amount will be influenced by factors such as account duration, balances, and the total number of eligible customers sharing the $425 million settlement fund.
Provided there is no appeal, payments are anticipated to be distributed on or around July 21.