Home / Business and Economy / Capital One Settles $425M Interest Case
Capital One Settles $425M Interest Case
23 Apr
Summary
- Capital One will pay $425 million to customers.
- Customers were misled into lower-interest accounts.
- Payments will be sent automatically to eligible users.
A $425 million settlement has been approved for Capital One customers, resolving claims that the bank misled users regarding savings account interest rates. US District Judge David Novak gave final approval this week, concluding a nearly two-year legal process. An earlier settlement attempt was rejected because it failed to adequately compensate customers for lost interest.
The core allegation involved Capital One's 360 Savings and 360 Performance Savings accounts. Customers were reportedly confused by the similar names, often unaware they were in the lower-interest 360 Savings account. This led to significant interest earnings being missed, particularly as rates on the 360 Performance Savings account climbed much higher than the 360 Savings account.
The settlement covers individuals who held a 360 Savings account between September 18, 2019, and June 16, 2025. The amount each customer receives will vary based on their deposit history and account tenure. Crucially, Capital One is also required to raise the interest rate on its 360 Savings account to match the 360 Performance Savings account going forward.
Eligible customers will receive their payouts automatically within one to two months; no action is required. This resolution underscores the importance of consumer awareness regarding financial products and how interest rates are applied to savings accounts.
