A significant development for customers of Capital One emerged this week as a judge approved a $425 million settlement in a class action lawsuit. This settlement pertains to claims regarding the interest rates offered on savings accounts, particularly the original 360 Savings Account versus the newer 360 Performance Savings Account introduced in 2019.
Plaintiffs in the lawsuit argued that Capital One consistently paid a higher return on the 360 Performance Savings Account compared to the 360 Savings Account, even though both accounts are fundamentally similar. The customers contended that the bank did not adequately disclose that the 360 Savings Account was no longer considered a high-yield savings option and that there was a more lucrative alternative available.
With the settlement approved, eligible Capital One account holders can anticipate forthcoming payments. Those who held a Capital One 360 Savings Account any time between September 18, 2019, and June 16, 2025, are eligible for compensation. This group includes primary account holders as well as joint and co-holders, although only primary holders will receive cash payments.
Automatic inclusion in the settlement means that eligible account holders do not need to file any claims. However, those wishing to opt out must submit a written request by March 30, 2026. Payments to eligible holders are projected to commence around July 21, 2026, either via mailed checks or electronically, depending on the holder’s preferred payment method. To receive electronic payments, account holders must have opted in by the specified deadline; otherwise, payments will be sent by check. Notably, those eligible for payments amounting to less than $5 will not receive any payment unless they selected electronic processing ahead of time.
The compensation that each eligible account holder receives will be determined based on how much additional interest they would have gained had they invested their savings in the 360 Performance Savings Account instead of the 360 Savings Account. For example, an individual with a $10,000 balance in the 360 Savings Account, earning an annual percentage yield (APY) of 0.30%, would have earned approximately $30 in interest over a year. Conversely, if that amount had been placed in the 360 Performance Savings Account, which has an APY of 3.30%, the interest earned could have totaled $330.
It is important to note that the exact amount received may be less than what the claim signifies, as settlement payments will also account for litigation costs, including attorney fees and administrative expenses, as well as the numbers of account holders who choose to opt out or leave their payments unclaimed.
In addition to the settlement payouts, ongoing Capital One savings customers stand to benefit from amendments to interest rate policies. Following the settlement, both 360 Savings and 360 Performance Savings accounts will receive identical interest rates. Based on the current market rates, this means that the APY for the 360 Savings Account will increase significantly from 1.00% to 3.20%, aligning it with the rate currently offered on the 360 Performance Savings Account.
