$425M Capital One Settlement Resolves Lawsuit Over High-Yield 360 Savings Accounts

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A $425 million class action settlement has been reached to resolve multidistrict litigation that alleged that Capital One deceptively marketed its 360 Savings accounts as high-interest savings products.

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The class action settlement, which was preliminarily approved by the court this month, covers all individuals or entities that maintained a Capital One 360 Savings account at any time between September 18, 2019 and June 16, 2025, including joint and co-holders of such accounts.

The Capital One settlement agreement explains that of the $425 million settlement fund, $300 million will be used for automatic cash payouts to eligible class members, and $125 million in additional interest will be paid going forward to customers who continue to hold 360 Savings accounts.

Related Reading: What is multidistrict litigation?

According to the agreement, class members whose Capital One settlement rebate is $5 or more will receive their payment by check automatically, without the need to submit a claim form.

Customers whose settlement payout is less than $5 must elect to receive payment via electronic means in order to get a rebate, court documents say.

The Capital One settlement agreement notes that as payout amounts have yet to be determined, class members are encouraged to choose the electronic payment option to ensure they receive their settlement payout.

Instructions for choosing electronic payment will be available on the court-approved Capital One settlement website, CapitalOne360SavingsAccountLitigation.com, once it is launched.

ClassAction.org will update this page when the official website for the Capital One 360 Savings settlement is established.

Per the agreement, for 360 Savings accounts that were open between September 18, 2019 and June 16, 2025, and that remain open 48 days after settlement notices are mailed, payments will be based on the approximate amount of additional interest that would have been earned on the account during that period had the account received the interest rate of Capital One’s 360 Performance Savings product.

For accounts that were open between September 18, 2019 and June 16, 2025 but are closed within the 48-day period following the date notices are mailed, Capital One settlement payouts will be calculated the same way and then increased by what’s estimated to be about 15 percent, the agreement describes.

This higher payout amount compensates for the fact that these class members will not receive further benefits from the payment of $125 million in additional interest, the settlement agreement notes.

Related Reading: 360 Savings Account Lawsuit Claims Capital One Deliberately Hid Existence of Higher-Yield 360 Performance Savings Accounts

Court documents relay that beginning within 45 days of the date the Capital One class action settlement goes into effect, the company will maintain an interest rate on 360 Savings accounts of at least two times the national average rate for savings deposit accounts, as calculated by the FDIC, until $125 million in additional interest has been paid to accountholders.

Class members who continue to have an open 360 Savings account after the date specified in the settlement notice will automatically receive payments of additional interest to their account going forward, the settlement agreement says.

The Capital One settlement received preliminary approval from the court on June 16, 2025. Next, the court will determine whether to grant final approval to the deal at a hearing on November 6, 2025.

According to the preliminary approval order issued by United States District Judge David J. Novak, notice of the Capital One settlement will be issued to class members by August 15, 2025.

Further, should the deal receive ultimate court approval, Capital One settlement payments will be sent to eligible class members within 60 days of the date it goes into effect, the agreement adds.

The consolidated lawsuits against Capital One alleged that the company deliberately hid the existence of its newer 360 Performance Savings account, and the product’s higher interest rate, from 360 Savings accountholders.

In addition, the class action suits contended that Capital One failed to raise interest rates on the 360 Savings account in proportion to rates paid on its newer product and concealed from customers that the former was no longer the company’s high-yield online savings account.

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