The dispute was over how Capital One handled the transition from its 360 Savings account to its 360 Performance Savings account. A federal judge granted final approval of a $425 million settlement in a lawsuit against Capital One. The lawsuit claimed that Capital One deceived savings account holders regarding this transition.
The 360 Performance Savings account was introduced in 2019 with a higher interest rate compared to the 360 Savings account. The annual percentage yield for the 360 Savings account was just 1 percent, while the new account offered an APY of 1.9 percent. This significant difference in interest rates led to accusations that Capital One failed to adequately inform customers about the change.
Wolf Popper LLP, representing affected customers, stated, “The lawsuit alleged that Capital One acted deceptively regarding the marketing and payment of interest on its 360 Savings account product.” They further claimed, “Capital One left all existing customers in the inferior 360 Savings account, and never informed them that 360 Performance Savings was a new, different product paying a higher interest rate.” These statements highlight the core of the allegations against the bank.
Despite these claims, Capital One has denied any wrongdoing throughout the legal proceedings. Still, impacted customers are automatically eligible to receive compensation from the settlement. Those who held a 360 Savings account from September 18, 2019, to June 16, 2025, will receive a check in the mail if their payment amounts to $5 or more.
The initial settlement proposal was for less than $300 million but faced rejection from federal prosecutors. The approved settlement not only compensates customers but also requires Capital One to match interest rates on deposits for both savings accounts moving forward.
Additionally, Capital One must maintain and service both account types for at least two years after the settlement is finalized. The option for customers to receive electronic payments closed on March 30.
Millions of current and former Capital One customers are now in store for payouts after this settlement approval. Judge David Novak oversaw the case in the Eastern District of Virginia and emphasized the importance of transparency in financial products.
Details remain unconfirmed regarding how quickly customers will begin receiving their payments. However, observers anticipate that this settlement may prompt other financial institutions to reevaluate their practices concerning customer communication and transparency.
