According to a notice filed last week to the U.S. federal court in Alexandria, Virginia, Capital One agreed to pay $425 million to customers who sued the bank in 2024 as part of a class action complaint. Before Capital One Bank Settlement Payment Status 2025 is active, the court must still approve the settlement. The Capital One-Discover merger has garnered a lot of attention, but since last year, the big bank has also been battling a class action lawsuit over its savings account.
According to the lawsuit, the bank deceived customers with savings accounts and promoted the 360 Savings account as its high yield savings account and later set the account’s rates at 0.3%, but when the Federal Reserve started raising interest rates quickly, rates on its more recent 360 Performance Savings account, which was also branded the 360 Savings account, skyrocketed to a peak of 4.3%. The lawsuit alleges that Capital One was able to avoid paying its customers more than USD 2 billion in interest between 2019 and 2025 and as stipulated in the agreement, Capital One refutes any misconduct.
Capital One Bank Settlement Payment Status
Customers of Capital One who had 360 Savings accounts from the past could finally receive justice. A proposed $425 million settlement in a significant class action lawsuit aims to payment account holders who were allegedly misinformed about better choices. The bank was charged with causing large missing profits by neglecting to notify its loyal customers about their newer, higher-yield 360 Performance Savings account.
After years of lawsuit, the $425 million Capital One settlement was submitted to the Eastern District of Virginia in May 2025. Capital One has agreed to pay Capital One Bank Settlement Payment 2025 Amount to impacted customers who kept older savings accounts with lower interest rates without accepting blame.
What charges are made in the lawsuit against Capital One?
Capital One promoted their 360 Savings account as a high interest savings account when it initially opened for business in February 2019. By September 2109, the bank had ceased promoting the account to new customers, removed all references of it, and replaced it with 360 Performance Savings account. In comparison to previous 360 Savings account, which earned only 1% APY, the new 360 Performance Savings account opened with 1.9% APY.
According to the lawsuit, Capital One deliberately misled customers by marketing the 360 Savings account as their high-interest offering before launching a new, higher-earning account without informing current customers or automatically switching to the previous account type. Capital One reduced rates on the older account type to just 0.3% when the pandemic struck in 2020, causing interest rates to decrease even more.
In compariosn, the 360 Performance Savings account earned 0.4%, the APY on the Capital One 360 Performance Savings account increased to 4.3% in 2022 when the Federal Reserve started a swift rate rise, while the earlier 360 Savings accounts remained stuck at the 0.3% rate. According to the claimaint’s, Capital One was able to avoid paying more than $2 billion in interest between 2019 and 2025.
Acquisition History & Account Structure Transformation
The 2012 acquisition of ING Direct USA by Capital One is the root of this issue, ING Direct led the way in high-yield savings accounts at the time. Capital One kept providing similar accounts within the same framework after the takeover, rebranding them as 360 Savings but a new program with a higher interest rate was launched in 2019: 360 Performance Savings.
Legacy 360 Savings customers were not highly advised to use this new account, even though it was available to all customers. Customters who choose not to switch and do active research were left with a lesser yield. The lawsuit’s foundation is lack of transparency.
Who is eligible for the compensation?
Customers who have had a Capital One 360 Savings account from the bank’s September 18, 2019, introduction of its 360 Performance Savings program are covered by the settlement. In particular, eligibility includes:
- Anyone having a Capital One 360 Savings account from September 18, 2019, until the present, whether or not the account has been closed or is still active.
- Every eligible account holder will get a share of the $300 million payout pool; the amount will be determined by the interest the customer would have received if the rates on their 360 Savings account and 360 Performance Savings accounts had been the same over the same time period.
- An additional $125 million is put aside for customers with 360 Savings accounts as of the settlement date. There will be additional interest payments sent to certain account holders. For this category, Capital One must keep its interest rate at least twice as high as the FDIC-set national average for savings accounts.
Capital One Bank Settlement 2025 Amount Break Up
There will be two methods used to pay out the $425 million settlement:
- In the class action case, $300 million will be used to pay each member for the interest they would have received if their account had been earning the same rates as the 360 Performance Savings account. Each member will get a different amount depending on how long they owned the account and the rates they paid for the 360 Performance Savings account while they had the previous 360 Savings account.
- The remaining $125 million will be used for 360 Savings account holders, as per FDIC, these accounts will now earn at least double the NAR for savings accounts.
Payment Date and your next approach
No Capital One Bank Settlement 2025 Payment Date has been fixed since the settlement is still awaiting judicial approval. The final hearing is scheduled for mid-June 2025, and the preliminary settlement needs court approval. Settlement administrators will inform qualified class members about compensation processes following court approval. Timelines for the distribution of settlement fund payments to both present and former 360 Savings account holders will be deifine by the judicial process.
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