Capital One has reached a $425 million settlement to resolve a class action lawsuit, offering compensation to millions of customers who were allegedly misled about interest rates on their savings accounts. The lawsuit highlights serious concerns over fairness and transparency, and the payout aims to address the long-term financial loss suffered by many loyal account holders.
The case centers on Capital One’s 360 Savings Account, which offered a relatively low interest rate for years, despite the bank’s marketing promises of “high interest” returns. Meanwhile, new customers could access a higher-yield 360 Performance Savings Account. The lawsuit claims that the bank failed to inform existing customers about the better option, which ultimately resulted in significant financial losses for long-time account holders.
A Discrepancy in Interest Rates Sparks Legal Action
From 2019 to 2025, customers with Capital One’s 360 Savings Account earned a static interest rate of 0.3%, a figure that was far below the national average and the rates offered to new customers. According to the Consumer Financial Protection Bureau (CFPB), the issue came to light during a review of Capital One’s practices, with many savers unaware that a higher-yield savings account—offering 4.3% interest—had been available since 2022.
This discrepancy became the basis for a class action lawsuit, which argued that Capital One misrepresented the terms of its 360 Savings Account and failed to notify existing customers about the better rates offered to newcomers. The lawsuit also claimed that the bank punished long-term customers by not giving them an opportunity to switch to the more lucrative account. As a result, the settlement was reached in mid-2025, although Capital One did not admit to any wrongdoing.
What the Settlement Means for Affected Customers
Under the terms of the settlement, those who held a 360 Savings Account between September 18, 2019, and June 16, 2025, will be eligible to claim compensation. The payment will cover the difference between the interest earned on the 360 Savings Account and what customers would have received had their funds been placed in the 360 Performance Savings Account.
In addition to past compensation, Capital One has agreed to ensure that active 360 Savings Accounts will now earn at least double the national average FDIC rate, ensuring better returns for loyal customers moving forward. The settlement offers a clear message about the importance of transparency in financial institutions and the need for fairness in dealing with longstanding customers.
For customers who believe they are eligible, the deadline to submit claims is October 2, 2025. Once claims are verified, payments will be processed after the November 6, 2025 final approval hearing. Expect disbursements in late 2025 or early 2026, following court approval.
