A major banking lawsuit has led to a $425 million settlement involving Capital One and customers of its “360 Savings” accounts. This settlement addresses claims that the bank misled long-term account holders by keeping their interest rates artificially low while offering significantly higher rates to newer account types. Here’s a full breakdown of the settlement — eligibility, payment structure, deadlines, and what you should do.
Overview Table
| Detail | Information |
|---|---|
| Settlement Amount | $425 million (combined) |
| Covered Account Type | “360 Savings” accounts held at any time between Sept 18 2019 and June 16 2025 |
| Payment Components | $300 million for past “lost interest” ＋ $125 million for additional future interest / incentives |
| Claim/Automatic Payment | No separate claim form required for most; must choose payment method by deadline |
| Payment Method | Direct deposit (if selected) or mailed check (if over threshold) |
| Key Deadlines | Payment-method or address updates by Oct 2 2025; final approval hearing scheduled November 6, 2025 |
Background: How the Dispute Arose
The source of the dispute: customers of Capital One’s 360 Savings accounts alleged that the bank promised “high-yield” interest rates when marketing those accounts (around 2019). Soon after, the bank introduced a new account type, the “360 Performance Savings” account, which carried significantly higher interest rates — in some timeframes up to 4.3% APY — while older 360 Savings accounts held by existing customers stuck at around 0.3% APY. The claim is that Capital One did not properly notify or convert those older account-holders and thus those customers lost out on interest earnings.
In May 2025 the bank agreed to a settlement of $425 million to resolve the class-action litigation.However, the settlement still requires final court approval and judging of fairness. In November 2025 a federal judge flagged concerns that the amount may still be insufficient.
Who’s Eligible?
If you held a Capital One 360 Savings account at any time between September 18 2019 and June 16 2025, you are likely part of the settlement class. Both current and former account-holders qualify — including those who have closed the account or converted it — provided the account was of that type in the timeframe. The new 360 Performance type does not make you eligible unless you also had the older 360 Savings in the covered period.
What the Settlement Offers: Payment Structure
The $425 million comprises two main parts:
- $300 million is allocated to cover “past interest losses” — the amount customers would have earned had their 360 Savings account been converted or paid the higher rates of the 360 Performance account.
- $125 million is allocated for “additional interest payments” for those who maintain their 360 Savings account (or convert before a certain deadline) — essentially an incentive/bonus for current or continuing account-holders.
According to settlement materials, account-holders who have already closed their 360 Savings account (or convert to the newer type) and do so by the Oct 2 2025 deadline may receive an estimated approximately 15% larger payout than those who keep their account open.
Payments will vary by individual account-history: how long the 360 Savings account was held, what interest rate difference applied, whether the account remains open or was closed/converted, etc.
Important Dates & Deadlines
- Payment Method / Address Update Deadline: October 2, 2025 — eligible account-holders must select their preferred payment method (electronic or check) or update their mailing address by this date.
- Final Approval Hearing: November 6, 2025 — the court will determine whether the settlement is fair and whether payments can begin.
- Payment Distribution Start: After court approval — payments expected late 2025 or early 2026, depending on processing.
Claim Process & Payment Mechanics
- No separate claim form is required for most eligible class-members; you are “automatically” included if you held the 360 Savings account during the covered period.
- You must choose your payment option (electronic deposit) or provide a mailing address by Oct 2. Otherwise, you may still get paid via mailed check but risk delays or even forfeiture if a check is under statute of limitations or uncashed.
- If your share is under a certain threshold (for example less than $5) you may need to opt-in for electronic payment because checks under $5 may not be mailed.
- If you keep your 360 Savings account open past Oct 2 you qualify for the “additional interest payments” portion; if you opted out by closing/converting the account early you will still receive a larger one-time cash payment.
Tax Implications
As with most class-action settlement payments, amounts received may be considered taxable income. Recipients should watch for IRS Form 1099 or similar and include it in their 2025 tax return. It’s wise to consult a tax advisor to ensure proper reporting and withholding if needed.
Why This Matters
This settlement marks an important step in holding large banks accountable for marketing and disclosure practices around savings accounts and interest rates. It underscores that customers who are promised high yields or “best-in-class” accounts must be treated fairly, and cannot be silently locked into inferior rates while newer customers are favored. For many customers, even a relatively modest compensation can add up when multiplied across many account-holders.
Key Considerations & What You Should Do
- Check if you were eligible: Did you hold a Capital One 360 Savings account between Sept 18 2019 and June 16 2025? If yes, you likely qualify.
- Select payment method / update info by Oct 2, 2025: Ensure your banking or mailing address is current.
- Decide whether to keep or convert/close your 360 Savings account: Weigh the benefit of a one-time larger payment (if you close/convert) vs. staying open for additional interest payments.
- Monitor the settlement website and court announcements: If the judge rejects or modifies the settlement (as indicated by recent news) further changes might emerge.
- Keep documentation: Retain notices, account statements, payment notifications, tax forms.
FAQs
Q1. Do I need to file a claim to receive payment?
No separate claim filing is required for most eligible account-holders — but you must update your payment method or address by the deadline.
Q2. Who qualifies for the settlement?
Anyone who held a Capital One 360 Savings account between September 18 2019 and June 16 2025 is eligible.
Q3. When will I receive the payment?
Payments will begin after the final court approval (scheduled for November 6, 2025), with distribution later in 2025 or early 2026 depending on processing.