If you have a Capital One saving account, you could be eligible for part of a massive $425 million agreement. This payment goes to anyone who held a Capital One 360 Savings Account between September 18 of 2019 and June 16 of 2025. The case mainly focuses on missed interest earnings of those clients who stopped gaining money because the bank didn’t inform them about a higher-paying savings account option.
Pay attention because those who close their 360 Savings Account before October 2 of this year, will receive payouts that are about 15% larger than those who don’t.
The settlement
In July of this year, a federal judge gave preliminary approval to a settlement between Capital One and a group of plaintiffs represented by Mathew B. Kaplan from Kaplan Law Firm and lawyers from Wolf Popper LLP.
The final hearing is scheduled for next November 6. If the settlement is finally approved, the payouts to clients would start around 2 months later.
Interest rates
Capital One launched 360 Savings Account in 2013 offering 1% APY (Annual Percentage Yield). At that moment, the national average was only 0.07%, which seemed like a competitive product. However, in September of 2019 the bank included the 360 Savings Account, which paid 1.9% APY. According to the lawsuit, Capital One stopped opening new 360 Savings accounts but never notified its clients about the possibility of changing to a higher-paying savings account option.
During COVID-19, when the Federal Reserve cut rates, Capital One lowered yield as well:
- 360 Savings account holders dropped to 0.3%.
- 360 Performance Savings account holders dropped to 0.4%.
Later, between March 2022 and August 2023, the Federal Reserve increased once again the rates. So, in response, Capital One boosted the Performance Savings up to 4.3%. However, 360 Savings clients were left with 0.3%, which the lawsuit claims this deprived many clients of higher interest earnings.
Advantage of closing the Capital One account
Capital One, which is currently in the process of merging with Discover, decided to reach an agreement without admitting no guilt. So, from a total of $425 million, $300 million were for those clients who closed or changed their 360 Savings Account into 360 Performance Savings Account before October 2 of this year. They will receive payouts about 15% higher than those who don’t do this.
What’s more, to make this process faster, eligible clients are encouraged to sign up for electronic payments through the official settlement website.
What if you keep the account?
For those clients who continue with their 360 Savings Account after October 2 there’s also a compensation, but less in the beginning. However, they will have the right for part of the $125 million left from the settlement. This money will be sent in the form of extra interest payments. According to the agreement, the rates will be at least twice as high as the national average for savings deposits, as calculated by the Federal Deposit Insurance Corporation (FDIC).
Next?
If everything goes as expected after the final hearing, Capital One clients could start receiving payouts at the beginning of 2026. So, remember the settlement provides two clear options:
- Close or convert your 360 Savings Account by October 2, 2025, and receive a bigger payout.
- Keep your account and receive smaller immediate compensation, followed by higher interest rates funded by the $125 million pool.
When it comes to bank issues, you should always stay informed so that you don’t experience any situation similar to this one. Nobody likes to be involved in a lawsuit, right? That’s why if you are eligible, you should save the dates and do whatever you think is the best for you.