Capital One Financial Corp. has received preliminary court approval for a $425 million settlement to resolve a class action lawsuit over interest payments on savings accounts, according to the settlement administrator’s portal.
summary
- Capital One has received preliminary court approval to resolve a class action lawsuit over alleged underpayments of interest on 360 savings accounts from 2019 to 2025.
- $300 million will compensate affected past account holders, and $125 million will increase interest for current 360 savings account customers.
- The settlement comes after the CFPB accused Capital One of misleading customers by offering the “best” interest rates, although the bank denies wrongdoing.
This settlement affects current and former customers who held Capital One 360 Savings accounts from September 18, 2019 to June 16, 2025. The depositors in the lawsuit alleged that the bank failed to pay promised interest.
The Consumer Financial Protection Bureau filed a separate lawsuit against Capital One in early 2025, alleging that the company deceived customers into paying more than $2 billion in interest. The CFPB accused Capital One of maintaining low interest rates on its 360 savings accounts while touting them as one of the “highest” and “highest” in the country as interest rates rise across the country.
“Banks should not deceive people with promises they cannot keep,” CFPB Director Rohit Chopra said in the filing.
Capital One denied the allegations but agreed to the terms of the settlement.
The proposed settlement would distribute $300 million in fees and payments based on the interest each account holder would have earned given the interest rate on the 360 Performance Savings account. The remaining $125 million will be paid in additional interest to customers who maintain active 360 savings accounts under the terms of the settlement.
According to the agreement, customers who maintain a 360 savings account will receive an interest rate that is at least twice the national average for savings accounts until the funds are exhausted.
