Millions of Capital One customers may soon receive compensation under a $425 million class action settlement resolving allegations that the bank misled savers for years about the interest rates on their “high-yield” 360 Savings accounts.
The case, filed in federal court in Virginia and supported by multiple state attorneys general, accuses Capital One of keeping loyal customers on low-yield accounts—some as low as 0.3%—while advertising higher rates for new accounts, resulting in an estimated $2 billion in lost interest earnings between 2019 and 2025.
This comprehensive guide explains who’s eligible, key dates, expected payout amounts, and how payments will be processed.
“Capital One’s case highlights how silent interest rate gaps can cost customers thousands over time,” said Dr. Kimberly Adams, a consumer finance analyst. “This settlement is a rare instance where savers may finally see restitution for unfair treatment.”
Table of Contents
Capital One $425M Class Action Settlement Overview
| Category | Details |
|---|---|
| Company | Capital One Bank |
| Settlement Amount | $425 million |
| Class Period | September 18, 2019 – June 16, 2025 |
| Country | United States |
| Type of Case | Class Action Settlement |
| Objection/Exclusion Deadline | October 2, 2025 |
| Final Approval Hearing | November 6, 2025 |
| Payment Method | Automatic direct payment or by check |
| Official Website | capitalone360savingsaccountlitigation.com |
Why was Capital One sued?
Between 2019 and 2025, Capital One offered two main savings products:
| Account Type | Interest Rate | Period Offered |
|---|---|---|
| 360 Savings Account | ~0.3% | 2019–2025 |
| 360 Performance Savings | ~4.3% | 2022 onward |
While new customers benefited from the 360 Performance Savings’ competitive rates, existing 360 Savings account holders continued earning minimal interest.
The Consumer Financial Protection Bureau (CFPB) and multiple state attorneys general accused the bank of:
- Misleading advertising: Marketing the 360 Savings Account as “high-interest” while rates remained among the lowest in the market.
- Failure to notify existing customers: Not informing loyal customers about newer, higher-yield alternatives.
- Unfair treatment: Rewarding new clients while older savers unknowingly lost out on competitive interest.
“Capital One’s conduct deprived its customers of more than $2 billion in fair earnings,” said New York Attorney General Letitia James, who led a coalition of 18 attorneys general challenging the original settlement terms. “Consumers deserve full transparency and fair returns.”
Who Is Eligible for the Settlement?
You may qualify for compensation if you meet the following criteria:
- You held a Capital One 360 Savings Account between September 18, 2019, and June 16, 2025.
- Both current and former account holders qualify.
- Joint account holders are eligible and will receive equal shares per account.
- No claim form is required — eligible customers will receive automatic payment notifications.
Those who closed their accounts before October 2, 2025, will still receive compensation as long as their contact details remain up to date.
“Customers who once thought they’d missed their chance should know: you don’t need an open account to get paid,” confirmed consumer rights attorney Alan Peterson.
Capital One Settlement Timeline
| Event | Date |
|---|---|
| Class Period | September 18, 2019 – June 16, 2025 |
| Exclusion Deadline | October 2, 2025 |
| Objection Deadline | October 2, 2025 |
| Payment Selection Deadline | October 2, 2025 |
| Final Approval Hearing | November 6, 2025 |
| Estimated Payment Distribution | Late 2025 – Early 2026 |
Payments will only be issued after court approval and the resolution of any appeals following the November 6, 2025, hearing.
Payout Breakdown
The $425 million settlement will be split into two key portions:
| Fund Type | Purpose | Amount |
|---|---|---|
| Cash Settlement Fund | Direct compensation to affected 360 Savings customers (based on account balances and tenure) | $300 million |
| Future Interest Adjustment Fund | Improved interest rates and rate guarantees for current account holders | $125 million |
Estimated Payouts
Individual payout amounts will vary. Early estimates suggest:
- Former customers may receive ~15% higher payments than current ones.
- Payments could range from $20 to several thousand dollars, depending on the account balance and duration held.
- Long-term savers who maintained high balances between 2020 and 2024 stand to receive the most compensation.
“While average payouts may be modest, the broader impact—higher rates and transparency—will benefit all Capital One customers moving forward,” noted finance professor Dr. Rachel Greene from Georgetown University.
How Payments Will Be Made?
Eligible customers will automatically receive payments by:
- Direct Deposit: To the bank account linked to their Capital One profile.
- Paper Check or Digital Payment: For former customers who closed accounts.
Steps to Ensure You Get Paid:
- Update your mailing address and email with Capital One.
- Check for notices or log in to capitalone360savingsaccountlitigation.com to verify your details.
- Select a payment method by October 2, 2025, if you prefer an alternative option.
Latest Developments
The November 6, 2025, fairness hearing will determine the final approval. Several state attorneys general have called for increased payouts, arguing that the $425 million total may still fall short of the actual $2 billion in lost interest.
However, consumer advocates believe the settlement is an important step in holding financial institutions accountable.
The case has also spurred broader regulatory review. The CFPB is reportedly examining whether other major banks have used similar dual-rate systems that disadvantage long-term customers.
Lessons for Consumers
This case underscores a vital financial lesson: loyalty doesn’t always pay in banking.
Key Takeaways for Savers:
- Review your interest rates regularly. Don’t assume your savings account remains competitive.
- Switch accounts when necessary. Newer accounts often offer better yields.
- Read the terms carefully. “High-yield” doesn’t always mean “highest available.”
- Track regulatory settlements. Class actions like this can lead to significant refunds.
“If this settlement teaches anything, it’s that consumers must act as their own advocates,” emphasized consumer economist Laura Mason. “Banks won’t always upgrade you to better products automatically.”
FAQs
Q1. Am I eligible for a payout?
Ans. Yes, if you held a Capital One 360 Savings Account anytime between September 18, 2019, and June 16, 2025.
Q2. Do I need to file a claim?
Ans. No. Payments are automatic, though ensuring your contact information is updated will help avoid delays.
Q3. How can I choose my payment method?
Ans. You can log in using your settlement notice ID and PIN at capitalone360savingsaccountlitigation.com before October 2, 2025.
Q4. When will payments be distributed?
Ans. Following the November 6, 2025, approval hearing, payments are expected between late 2025 and early 2026.
Q5. How much will I receive?
Ans. Amounts vary depending on your balance and account duration, but customers who closed accounts may receive ~15% larger payouts.