Capital One has agreed to a $425 million settlement to resolve a class-action lawsuit concerning its "360 Savings" accounts. The settlement, finalized by Judge David Novak in the Eastern District of Virginia, involves millions of current and former account holders who held 360 Savings accounts between September 2019 and June 2025.
The lawsuit focused on Capital One's management of the transition from its original 360 Savings accounts to the higher-interest 360 Performance Savings accounts introduced in 2019. The legal action alleged that Capital One failed to properly migrate existing customers to the new accounts, resulting in customers missing out on millions of dollars in interest payments.
Under the settlement, Capital One will provide restitution to affected customers and has agreed to raise interest rates on the older 360 Savings accounts to match those of the 360 Performance Savings accounts. The bank is also required to maintain and service both account types for at least two years to prevent customers from being moved back into lower-tier brackets. The initial settlement offer of $300 million was rejected for not adequately compensating customers for their losses.
The case highlighted confusion arising from the similar names of the accounts, leading to significant financial losses for customers who were unaware they were not receiving the higher interest rates. The settlement aims to compensate those affected and ensure fairer practices regarding Capital One's savings account products moving forward.
