June 14, 2025 — USA: Capital One has agreed to a $425 million class action settlement over its 360 Savings account, following allegations that it misled customers and shortchanged them on interest earnings. While the deal still awaits final court approval, millions of current and former account holders may be eligible for payouts.
This high-profile lawsuit, quietly unfolding as the Capital One-Discover merger drew headlines, stems from claims that the bank froze interest rates on older savings accounts while quietly launching a higher-yield version—without notifying customers.
What Was the Lawsuit About?
According to court documents filed in federal court in Alexandria, Virginia, Capital One launched the 360 Savings account in 2019, marketing it as a high-interest savings option. However, by September of that year, the bank had shifted focus to a newer account—the 360 Performance Savings—which offered better returns. While the Performance account’s rates soared to as high as 4.3%, the original 360 Savings account remained stuck at just 0.3%.
The lawsuit accused Capital One of using a “bait-and-switch” tactic by:
- Freezing interest rates on old accounts
- Creating a new product with a nearly identical name
- Failing to inform customers of the higher-yield alternative
- Allegedly avoiding over $2 billion in interest payments between 2019 and 2025
The bank has denied any wrongdoing as part of the settlement.
Who Is Eligible for a Payout?
If you had a Capital One 360 Savings account at any point between September 18, 2019, and the date the judge approves the settlement, you may qualify for compensation.
This includes:
- Current Capital One customers
- Former customers who closed their 360 Savings accounts during the specified time
How Much Will You Get?
The $425 million will be distributed in two key parts:
$300 million is set aside to compensate class members based on how much interest they should have earned had they been moved to the 360 Performance Savings account. Payouts will vary depending on how long a person held the account and the amount saved.
$125 million will enhance interest rates for existing 360 Savings customers, guaranteeing them a rate at least twice the national average, as determined by the FDIC.
When Will Payments Start?
The settlement still needs a judge’s final approval, which is expected later in 2025. Once that happens, payment distribution could begin in early 2026.
What You Can Do Now
To ensure you’re on the list:
Watch for official emails or mailers from the settlement administrator
Keep your account information updated if you’re still a Capital One customer
Visit the official settlement site once it launches for claim instructions
What This Means for All Savers
Regardless of whether you bank with Capital One, this case is a reminder to regularly review your savings account’s interest rate. Banks may offer new products with better yields while keeping older accounts at lower rates.
Tips to maximize your savings:
- Compare high-yield savings accounts quarterly
- Consider certificates of deposit (CDs) for locked-in rates
- Avoid accounts with excessive fees or restrictive conditions
This Capital One settlement signals a major win for consumers and a cautionary tale for banks using opaque pricing practices. As the Fed continues to adjust rates, now is the time to stay vigilant and proactive about where you keep your money.