Capital One has agreed to pay $425 million to settle a nationwide class-action lawsuit alleging the bank misled customers about interest rates on its 360 Savings accounts. The lawsuit claimed that Capital One failed to inform depositors about more lucrative interest rates available through its 360 Performance Savings accounts.
Under the terms of the settlement, $300 million will be distributed to affected depositors to compensate for the interest they could have earned had they been placed in the higher-yield account. An additional $125 million will be allocated as further compensation to current holders of 360 Savings accounts. The settlement also covers legal fees and administrative costs.
The lawsuit, filed in the U.S. District Court for the Eastern District of Virginia, alleges that Capital One kept the interest rate for 360 Savings accounts at 0.3%, while offering rates as high as 4.35% on 360 Performance Savings accounts. The higher-yielding account now offers a rate of 3.6%. The settlement covers depositors with 360 Savings accounts at any time since September 18, 2019.
Capital One did not admit to any wrongdoing in agreeing to the settlement and has not publicly commented on the matter. The settlement is pending final approval from a federal judge.
This development comes amid ongoing regulatory scrutiny of Capital One’s savings account practices. In January 2025, the U.S. Consumer Financial Protection Bureau (CFPB) filed a lawsuit against the bank, alleging that it misled customers about interest rates on its savings accounts. However, the CFPB dropped the case in February 2025 following a change in administration. Separately, New York Attorney General Letitia James filed a lawsuit against Capital One in May 2025, accusing the bank of cheating depositors out of millions of dollars in interest. Capital One has denied the allegations and stated it will vigorously defend itself in court.
The settlement is expected to provide financial relief to affected depositors and may influence future banking practices regarding transparency and customer communication.
