Capital One Bank Settlement 2025: In a major legal update, Capital One Bank has agreed to a $425 million settlement over claims it failed to inform customers about better interest rates on savings accounts—impacting millions of Americans nationwide.
A federal court in Alexandria, Virginia officially approved the Capital One Bank settlement in May 2025, resolving a class-action lawsuit involving its popular 360 Savings accounts. The suit accused the bank of misleading customers by not notifying them about its higher-yield 360 Performance Savings account, which offered a better Annual Percentage Yield (APY).
Why Capital One Is Paying $425 Million
According to the Consumer Financial Protection Bureau (CFPB), Capital One saved over $2 billion by keeping existing customers on a lower interest plan. The bank allegedly failed to upgrade or notify users about the new high-interest account it rolled out in 2019.
Instead of increasing rates for current account holders, Capital One launched the 360 Performance Savings account, offering up to 1.90% APY while existing customers earned as little as 1.00%. The class-action lawsuit claims this two-tier system violated consumer protection laws in at least 18 U.S. states, including California, Texas, New York, and Florida.
How the Settlement Will Be Paid Out
The Capital One settlement 2025 breaks down into two major components:
$300 million will be distributed to customers who missed out on higher interest earnings between September 18, 2019, and the present. The amount each person receives will depend on how long they held the account.
$125 million is reserved for people who still have active 360 Savings accounts. These account holders will also start earning interest rates above the national average, as set by the FDIC.
Who’s Eligible to Claim?
If you had a Capital One 360 Savings account at any time since September 2019, you may qualify for a payout. No lawyer is needed to file a claim.
Here’s what to do:
- Check the official settlement website (launching soon).
- Watch for a notice via email or physical mail.
- Fill out a claim form when available, and submit it online or by mail.
Background on the Lawsuit
The case—In Re: Capital One Savings Account Interest Rate Litigation—originated after Capital One acquired ING Direct USA in 2012. Those ING accounts became 360 Savings accounts under Capital One.
In 2019, when the bank introduced its newer high-interest product, it allegedly did so without alerting existing customers, violating the Virginia Consumer Protection Act and similar laws in multiple states. Plaintiffs also alleged breach of contract and bad faith.
While Capital One tried to dismiss the lawsuit, the court allowed most claims to proceed. The settlement reached in May 2025 avoids a full trial while providing financial relief to millions.