Capital One Financial Corporation has received preliminary court approval for a $425 million settlement to resolve a class action lawsuit over the payment of interest rates on savings accounts, according to the Settlement Administrator Portal.
Summary
- Capital One has received preliminary court approval to settle a class action lawsuit over alleged underpayment of interest on 360 savings accounts from 2019 to 2025.
- $300 million will compensate affected former account holders, while $125 million will boost interest among current 360 savings account customers.
- The settlement comes after the CFPB accused Capital One of misleading its customers by offering “the highest” interest rates, although the bank denies any 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 that the bank failed to meet 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 promoting its 360 savings accounts as offering one of the “best” and “highest” interest rates in the country, while keeping interest rates low on those accounts while rates were rising nationally.
“Banks shouldn’t harass people with promises they can’t keep,” CFPB Director Rohit Chopra said at the time of the filing.
Capital One denied the allegations but agreed to the terms of the settlement.
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 they had benefited from the 360 Performance Savings account rates. The remaining $125 million will be paid as additional interest to customers who hold active 360 savings accounts, according to settlement terms.
Customers with current 360 savings accounts will receive an interest rate at least twice the national average for savings deposit accounts until settlement funds are exhausted, according to the agreement.
