A federal judge has approved a $425 million settlement resolving a lawsuit against Capital One involving differences in interest rates offered on savings accounts. The settlement affects Capital One customers who held a 360 Savings account anytime from September 18, 2019, through June 16, 2025.
The lawsuit alleged that Capital One paid lower interest rates on its older 360 Savings accounts while simultaneously offering higher rates on a newer product, the 360 Performance Savings account, introduced in 2019. Plaintiffs claimed the bank did not adequately inform customers about the higher rates available on the newer account, effectively disadvantaging holders of the older account.
Capital One has denied any wrongdoing but agreed to the settlement to resolve the dispute. Payments will be distributed to eligible customers based on the difference between the interest they actually earned under the 360 Savings rate and what they would have earned at the higher 360 Performance Savings rate during the covered period.
Settlement payout details
Eligible customers include anyone who held a 360 Savings account at any point during the six-year period, including joint and co-account holders. Recipients do not need to file claims to receive a payment. Most will receive checks by mail if their payout exceeds $5. Customers who opted for electronic payments before the March 30 deadline will receive funds electronically. Payments under $5 will only be sent to those who chose electronic delivery.
Payment timeline and deductions
Following the judge’s approval on April 20, the settlement website states payments are expected to begin around July 21, barring any appeals. From the $425 million total, legal fees and administrative costs will be deducted before distributing the remaining funds among eligible account holders according to their calculated amounts.
Why it matters
This settlement addresses concerns over transparency and fairness in how financial institutions disclose account features and pricing. It highlights the importance for banks to inform customers clearly when newer, better products become available and ensure equitable treatment of existing account holders.
Background
Capital One launched the 360 Performance Savings account in 2019, which offered higher interest rates than the older 360 Savings accounts. The class-action lawsuit contended that many customers with older accounts did not receive sufficient information about the superior rates available, leading to lower returns on their savings.
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