Capital One Financial Corporation has received preliminary court approval for a $425 million settlement to resolve a class-action lawsuit involving interest rate payments on savings accounts, according to the settlement administrator’s portal.
Summary
- Capital One received preliminary court approval to settle a class-action lawsuit over alleged underpayment of interest on 360 Savings accounts from 2019–2025.
- $300 million will compensate affected past account holders, while $125 million will boost interest for current 360 Savings account customers.
- The settlement comes after the CFPB accused Capital One of misleading customers about offering “highest” interest rates, though the bank denies wrongdoing.
The settlement affects current and former customers who held Capital One 360 Savings accounts between September 18, 2019 and June 16, 2025. Depositors in the lawsuit alleged the bank failed to provide promised interest payments.
The Consumer Financial Protection Bureau filed a separate lawsuit against Capital One earlier in 2025, alleging the company misled customers out of more than $2 billion in interest payments. The CFPB accused Capital One of advertising its 360 Savings accounts as offering one of the nation’s “best” and “highest” interest rates, while allegedly maintaining low interest rates on those accounts as rates increased nationally.
“Banks should not be baiting people with promises they can’t live up to,” CFPB Director Rohit Chopra stated at the time of the filing.
Capital One has denied the allegations but agreed to the settlement terms.
Under the proposed settlement, $300 million will be distributed in fees and payments to affected account holders based on the interest each would have earned if given 360 Performance Savings account rates. The remaining $125 million will be paid as additional interest to customers who maintain active 360 Savings accounts, according to the settlement terms.
Customers with continuing 360 Savings accounts will receive an interest rate of at least two times the national average for savings deposit accounts until the settlement funds are exhausted, according to the agreement.
