The capital one 360 savings account lawsuit has reached a significant milestone, with Capital One agreeing to a $425 million settlement that will benefit millions of affected customers. The agreement addresses claims that the bank paid substantially lower interest rates on certain accounts compared to newer products, without adequately informing account holders.
Why the Lawsuit Happened
The dispute centered on differences between the long-standing 360 Savings account and the newer 360 Performance Savings account. While both accounts were marketed as high-yield options, the Performance version offered annual percentage yields that were many times higher. At one point, Performance accounts earned rates above 4%, while legacy 360 Savings accounts received less than 0.35%.
Plaintiffs argued that this gap resulted in lost earnings for depositors over several years. They claimed the bank failed to clearly notify customers that switching to the newer account type could significantly boost their returns.
Key Settlement Details
Capital One has agreed to pay a total of $425 million, which will be distributed in two ways:
- $300 million for automatic cash payouts to qualifying account holders.
- $125 million for additional interest credits, given over time to customers who keep their 360 Savings accounts open.
Importantly, the settlement does not require customers to file a claim. All payments will be processed automatically, though certain actions may increase the payout amount for some individuals.
Who Is Eligible
Eligibility covers anyone who held a Capital One 360 Savings account between September 18, 2019, and June 16, 2025. This includes both primary and joint account holders.
Even if the account is now closed, former customers within that time frame still qualify for payment.
Options for Account Holders
Customers will need to decide whether to keep their 360 Savings account open or close it before the settlement deadline. The decision can affect the payout:
| Account Choice | Cash Payout | Extra Interest Benefit |
|---|---|---|
| Close by October 2 | Standard payout + ~15% bonus | None |
| Keep Account Open | Standard payout | Additional interest over time |
Those who keep their accounts open will continue to receive interest credits until the $125 million allocation is fully distributed. Those who close early may get a larger one-time payout but forfeit future credits.
Important Dates
- October 2, 2025 – Last day to update account information or choose to close the account for a one-time larger payment.
- November 6, 2025 – Final settlement approval hearing.
- ~60 days after approval – Payments are expected to be released to eligible participants.
How the Payments Will Work
Payments will be sent using the same method currently linked to the customer’s Capital One profile. Customers should check and update their payment preferences before the October deadline to avoid delays. For those who have closed their accounts, settlement administrators will issue payments through alternative methods such as checks or direct deposits to another bank.
What This Means for Consumers
This case highlights the importance of monitoring account terms and interest rates, even with long-trusted financial institutions. Many customers assumed their savings accounts were competitive, only to later learn that better options existed within the same bank.
While Capital One continues to deny wrongdoing, the settlement ensures some recovery for lost earnings over the covered period. The automatic nature of the payouts means affected individuals don’t have to navigate a complicated claims process.
Final Word
The capital one 360 savings account lawsuit stands as one of the larger recent financial settlements aimed at addressing interest rate disparities. Whether customers choose to close their accounts for a larger immediate payout or keep them open for additional interest over time, the resolution provides a rare opportunity for compensation without legal hurdles.
Have you decided which option you’ll take? Share your thoughts and help others weigh their choices.