Eligible holders of 360 Savings accounts will receive automatic payments, expected around July 21, with no claim filing required
A federal judge approved a $425 million settlement in a class action lawsuit accusing Capital One $COF of paying lower interest rates on older savings accounts while offering higher rates on a nearly identical product. Payments are expected to go out on or about July 21 to eligible customers, with no action required on their part.
Joint and co-holders also qualify if their account was open at any time between September 18, 2019, and June 16, 2025. Capital One says it did nothing wrong.
To determine individual payment amounts, the settlement uses the gap between what a customer actually earned and what they would have received at the 360 Performance Savings rate over the same timeframe. Legal fees and the costs of administering the settlement come out of the total fund first, and what is left over is then distributed to those who qualify. Account holders whose share exceeds $5 but who never signed up for electronic delivery will get a paper check sent to them; anyone owed less than $5 receives nothing unless they enrolled in electronic payment before the March 30 cutoff.
The agreement also carries an ongoing benefit for current customers: according to Yahoo Finance, Capital One $COF must equalize the rates across both accounts, which at today's figures would push the 360 Savings rate from 1.00% APY up to the 3.20% APY currently offered on the 360 Performance Savings product.
Getting this settlement approved was not easy. U.S. News & World Report says Judge David Novak of the Eastern District of Virginia rejected an earlier deal in November 2025. He said splitting the $425 million between $300 million in payments and $125 million for rate increases did not do enough for customers, and the bank was still not making the higher-rate account easy to find. Court documents showed that about 75 percent of affected customers remained on the lower-rate account.
Under the renegotiated terms, the entire $425 million is now directed toward reimbursing customers for lost interest rather than being split between restitution and rate remediation. State-level opposition had also complicated the earlier deal, according to U.S. News & World Report — New York Attorney General Letitia James was among the state law enforcement officials who challenged the original terms and pursued independent litigation, all of which was resolved and withdrawn once the revised settlement was finalized.
At the heart of the case was Capital One's decision to introduce the 360 Performance Savings account in 2019 alongside its older 360 Savings product. Over the years that followed, the two accounts diverged sharply in the rates they paid — the legacy account's yield sank to 0.30% APY at its lowest while the newer account climbed to a peak of 4.35% APY, according to claims. Plaintiffs also alleged that Capital One deliberately prevented existing customers from learning that a far more lucrative option was available to them.
