Capital One has agreed to pay $425 million to settle a class action lawsuit alleging the bank kept interest rates on its 360 Savings accounts at uncompetitive levels for years, costing customers substantial amounts in lost interest.
The settlement applies to anyone who maintained a Capital One 360 Savings account between September 18, 2019, and June 16, 2025. Court filings in the U.S. District Court for the Eastern District of Virginia state that customers accused Capital One of marketing the 360 Savings account as a “high interest” product with a variable rate that ranked among the nation’s best, but failing to adjust those rates in line with market increases.
According to the lawsuit, the bank froze the 360 Savings account rate at just 0.3% for years. Meanwhile, Capital One launched a new product – the 360 Performance Savings account – which offered far higher returns, climbing to 4.3% in 2022 following the Federal Reserve’s rapid series of interest rate hikes. Many customers allege they were never informed about the newer account option or its higher rates.
Earlier this year, the Consumer Financial Protection Bureau (CFPB) also took action against Capital One, claiming the bank’s practices misled customers and resulted in more than $2 billion in lost interest earnings. Although the CFPB dropped its lawsuit in February, the separate class action continued, ultimately leading to the $425 million agreement.
Under the settlement terms, eligible customers will receive compensation equal to the difference between the interest they actually earned on their 360 Savings account and what they would have earned if they had been receiving the 360 Performance Savings rate during the same period. For those who still maintain a 360 Savings account, Capital One will adjust their interest rate so that it is at least twice the national average for savings accounts, as calculated by the FDIC.
The proposed agreement is pending final court approval. A hearing is scheduled for November 6, 2025, to determine whether the settlement will be finalized. Customers wishing to receive payment or object to the settlement must submit a claim or file an objection by October 2, 2025.
Individuals who believe they qualify can find official claim forms and further details on the settlement website managed by the administrator.
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