Capital One has reached a $425 million settlement to benefit its customers. The case revolves around the bank’s handling of its 360 Savings account, which kept interest rates stable on older accounts while newer accounts received significantly higher returns.
From September 18, 2019, to June 16, 2025, the interest rate on 360 Savings accounts remained at just 0.3%, while market rates were rising. In contrast, the interest rate on the new 360 Performance Savings account reached 4.3% in 2022. The Consumer Financial Protection Bureau (CFPB) estimates that this difference resulted in a total loss of over $2 billion to customers.
Although the CFPB dismissed the lawsuit in February 2025, the class action lawsuit continues. Ultimately, Capital One decided to settle, ensuring past and future payments to eligible account holders.
Why the Settlement Was Reached
The lawsuit alleges that Capital One falsely touted its 360 Savings account as a high-return option while keeping interest rates significantly lower than the market average. Customers claimed they were not properly informed about the better-performing 360 Performance Savings account, resulting in lower returns.
By agreeing to the settlement, Capital One avoided further legal proceedings but did not admit any wrongdoing. The $425 million fund was created to establish fairness among customers and promote responsible financial practices.
Who Can Claim?
The scope of the settlement benefits is broad and includes both current and former account holders. Anyone who held a Capital One 360 Savings account within the specified period is covered.
Eligibility Criteria:
| Criteria | Details |
|---|---|
| Account Type | 360 Savings account |
| Period | September 18, 2019 – June 16, 2025 |
| Status | Both current and former account holders qualify |
This broad eligibility ensures that even those who closed their accounts years ago may be eligible to receive compensation.
What the Payment Will Include
The settlement will benefit customers in two ways:
| Compensation | Explanation |
|---|---|
| Past Earnings | Customers will receive payments reflecting the interest they would have earned in the 360 Performance account. |
| Future Protection | Active 360 Savings accounts must now yield at least twice the FDIC national average rate. |
This structure aims not only to compensate for past losses but also to prevent future inequities between different Capital One services.
Timeline of the Settlement Process
The settlement will proceed under court supervision, and clear deadlines have been established for customers.
| Step | Date/Timeline |
|---|---|
| Deadline to Submit Claims/Objections | October 2, 2025 |
| Final Approval Hearing | November 6, 2025 |
| Payment Distribution | After Court Approval and claims processing |
Customers must file claims by the established deadline to remain eligible.
Why the Case Is Important
This case is considered a milestone in consumer protection. It shows that financial institutions can be held accountable when customers are misled or receive unequal benefits. Capital One continued to market the 360 Savings Account as a competitive option, while customers were receiving returns significantly below market rates.
The settlement also demonstrates how important class action lawsuits are in obtaining financial relief. This lawsuit continued even after regulatory intervention ended, ultimately securing significant payments to customers.
What customers should do now
Account holders should check their eligibility, prepare to file a claim before the October 2025 deadline, and await official notice. Compensation will depend on the amount deposited in the account and the period of holding the funds.
This settlement provides financial relief for past losses and ensures better returns in the future. Customers are advised to monitor their account performance and compare available options to avoid similar problems in the future.
FAQs
Q. Who is eligible for the Capital One settlement?
A. Anyone who held a 360 Savings account between September 18, 2019, and June 16, 2025.
Q. Do I need to apply for the payment?
A. Yes, eligible account holders must submit a claim before the deadline.
Q. What does the settlement cover?
A. Past lost earnings and future interest protection for active 360 Savings accounts.
Q. When is the deadline to submit claims?
A. October 2, 2025.
Q. How will payments be distributed?
A. After court approval and once submitted claims are processed.
