A federal judge approved the $425 million deal on April 20, with automatic payments expected by July
Millions of Capital One customers who held a specific savings account between 2019 and 2025 are set to receive automatic cash payments this summer following the approval of a $425 million class action settlement. A U.S. District Court judge in the Eastern District of Virginia signed off on the deal on April 20, ending a multi-year legal dispute over what plaintiffs described as a deceptive interest rate scheme.
Capital One denied any wrongdoing and agreed to the settlement to avoid going to trial. The court also clarified that its approval does not constitute a finding that the bank acted improperly.
What the lawsuit was about
The case centered on two savings products that Capital One offered under strikingly similar names: 360 Savings and 360 Performance Savings. According to court filings, the accounts were nearly identical in every respect except one, the interest rate they paid.
Capital One offered 360 Savings accounts from 2013 and marketed them as high-interest products with one of the nation’s best savings rates. In September 2019, the bank launched 360 Performance Savings without notifying existing 360 Savings customers that a higher-yielding alternative now existed. The original accounts remained open and active but the interest rates on them stopped keeping pace with the market.
The gap grew substantially over time. By the point of peak disparity, the 360 Performance Savings account carried an interest rate of 4.35% while the 360 Savings rate sat at just 0.30%, a difference of more than 14 times. Plaintiffs alleged that customers in the older accounts lost more than $2 billion in interest they would have earned had their money been moved or the rates kept equal.
A bipartisan coalition of 18 state attorneys general, including Michigan Attorney General Dana Nessel, joined in objecting to an initial settlement proposal in 2025, arguing it did not adequately compensate affected customers. That agreement was rejected by the court before both sides renegotiated the current $425 million deal.
Who qualifies for a payment
Eligibility covers anyone who held a Capital One 360 Savings account at any point between September 18, 2019, and June 16, 2025. That includes current and former account holders, as well as joint and co-holders of qualifying accounts.
No action is required to receive a payment. All eligible members will be paid automatically based on the terms of the settlement. Capital One has also agreed going forward to pay the same interest rate on 360 Savings accounts as it pays on 360 Performance Savings accounts.
How much will you receive and when
Payment amounts will vary from person to person. Each payout is calculated based on how much interest the account holder would have earned during the class period if the 360 Savings rate had matched the 360 Performance Savings rate throughout. After deducting administrative costs and legal fees, the remaining settlement fund will be divided among recipients according to their individual calculated amounts.
The settlement administrator has not released final individual payment figures. Payments are expected to be distributed on or around July 21.
Customers who registered for electronic payment before the March 30 deadline will receive their funds digitally. Everyone else whose payment totals $5 or more will receive a check by mail. Additional details are available at the official settlement website.