Capital One to Pay $425M in Savings Account Settlement, Millions of Customers Could Benefit

A proposed \$425 million settlement has been introduced in the case In re: Capital One 360 Savings Account Interest Rate Litigation, No. 1:24-md-03111-DJN (E.D. Va.). The agreement seeks to resolve claims that Capital One failed to properly raise interest rates on its 360 Savings accounts after launching the newer 360 Performance Savings account in 2019.

The settlement affects millions of customers nationwide who held a 360 Savings account between September 18, 2019, and June 16, 2025. Plaintiffs alleged that Capital One offered higher interest on its new 360 Performance Savings product while leaving loyal 360 Savings customers earning significantly less, despite the accounts being otherwise nearly identical.

While Capital One denies any wrongdoing, the bank agreed to settle the case to avoid a trial. If approved, the agreement will deliver both direct financial compensation and enhanced account benefits to affected customers.

Background of the Lawsuit

Capital One first launched the 360 Savings account in 2013 as a high-yield online savings product. For several years, it attracted millions of customers seeking better returns than traditional banks offered.

However, on September 18, 2019, the bank introduced the 360 Performance Savings account, which offered higher interest rates. At the same time, Capital One stopped opening new 360 Savings accounts but continued to service existing ones.

The lawsuit claimed that Capital One did not adequately notify customers of this shift, leaving many with accounts that earned far less in interest compared to what they could have received by switching to the new product. Plaintiffs argued this practice unfairly disadvantaged long-time customers, who collectively missed out on hundreds of millions in potential earnings.

Settlement Fund Breakdown

The proposed \$425 million settlement is divided into two funds designed to compensate both past and current account holders.

Fund Type	Amount	Purpose
Cash Settlement Fund	\$300 million	Direct payments to eligible customers.
Increased Interest Fund	\$125 million	Higher ongoing interest rates for current 360 Savings account holders.

This structure ensures that:

• Closed accounts receive cash reimbursement.
• Open accounts benefit from future interest increases alongside financial compensation.

It is one of the largest consumer banking settlements in recent years, reflecting the widespread impact of the issue.

Eligibility and Payment Method

The settlement covers all individuals and entities who held a Capital One 360 Savings account between September 18, 2019, and June 16, 2025. Benefits differ depending on account status:

Account Status	Benefit
Open account (as of June 16, 2025)	Receives enhanced interest benefits and possibly additional compensation.
Closed account	Receives direct cash payment.

• Payments of \$5 or more will be sent as checks by mail.
• Customers can elect electronic payment, even if their share is less than \$5.
• The deadline to opt for electronic payment is October 2, 2025.

This flexibility ensures that every eligible participant can receive compensation, regardless of account status.

Legal Rights and Options

Settlement class members are automatically included but retain important legal rights:

• Remain in the Settlement – Automatically receive cash or interest benefits.
• Opt Out (by October 2, 2025) – Exclude yourself if you wish to retain the right to sue Capital One independently.
• Object (by October 2, 2025) – File objections or comments regarding fairness, attorney fees, or the distribution plan.

These options ensure fairness while giving consumers freedom to pursue other legal remedies if they choose.

Court Approval Hearing

The settlement is not yet final. A court approval hearing is scheduled for November 6, 2025, where a federal judge will determine whether the agreement is fair, reasonable, and adequate.

At the hearing, the court will also review:

• Attorney fees, which may reach up to 20% of the settlement fund.
• Service awards for class representatives who helped lead the case.
• Any objections raised by settlement members.

Key Dates to Remember:

• October 2, 2025 – Deadline to opt out, file objections, or elect electronic payment.
• November 6, 2025 – Court hearing for settlement approval.

If approved, payments will follow soon after, delivering long-awaited relief to millions of former and current Capital One customers.

Significance of the Settlement

This settlement highlights the growing scrutiny of consumer banking practices in the digital age. As banks roll out new products, longstanding customers often risk being left behind with outdated terms. The Capital One case underscores the importance of clear communication and fair treatment when new financial products replace older ones.

For consumers, it serves as a reminder to regularly review account terms and explore alternatives to ensure competitive returns. For Capital One, the settlement is an opportunity to resolve years of litigation while restoring public trust.

Final Takeaway

The \$425 million Capital One settlement could bring meaningful compensation to millions of customers who held 360 Savings accounts between 2019 and 2025. With both cash payouts and higher future interest rates, the deal attempts to balance past restitution with future fairness.

While Capital One denies wrongdoing, the proposed settlement—if approved—will close a major chapter in consumer banking litigation and deliver significant financial relief to affected customers.

For more details, customers can visit www.CapitalOne360SavingsAccountLitigation.com or call 1-888-832-2704.

FAQs

Q1. Who is eligible for the Capital One settlement?
Anyone who held a Capital One 360 Savings account between September 18, 2019, and June 16, 2025 is included.

Q2. How much money will customers receive?
Payments will vary based on account history, but all class members will share in the \$425 million fund through either direct cash or enhanced interest.

Q3. Do I need to apply to receive compensation?
No. Eligible members are automatically included, though they must elect electronic payment if preferred before October 2, 2025.

Q4. Can I sue Capital One separately if I’m part of the settlement?
Only if you opt out of the settlement by October 2, 2025. Remaining in the settlement waives your right to separate lawsuits over the same claims.

Q5. When will payments be distributed?
If the court approves the deal at the November 6, 2025 hearing, payments will be issued soon afterward.