Capital One has agreed to a $425 million settlement that will compensate millions of customers tied to the bank’s 360 Savings Account after the launch of the higher yielding 360 Performance Savings in 2019. The lawsuit alleged that many account holders were not clearly alerted to the superior rates available on the new product, causing missed interest. Capital One denies wrongdoing but has chosen to settle. The structure is designed to pay most eligible customers automatically, with no claim form required, and to deliver larger payments to those who close or convert their legacy 360 Savings by a specific date. Below is a plain English guide to eligibility, payment amounts, timelines, and your options.
Table of Contents
What Sparked The Settlement
Back in September 2019, Capital One introduced the 360 Performance Savings Account with significantly better rates than the longstanding 360 Savings. According to the lawsuit, many customers continued in the older account because the rate difference and upgrade path were not made sufficiently clear, causing them to miss interest they might have earned. Capital One disputes these claims yet agreed to a global resolution to deliver compensation sooner and avoid extended litigation.
Quick Summary
Item |
Details |
|---|---|
Settlement amount |
$425 million total fund |
Covered accounts |
Capital One 360 Savings held any time from September 18, 2019 through June 16, 2025 |
Who is included |
Individuals and joint owners meeting the date criteria, no claim filing required for most |
Payment structure |
$300 million for direct cash payments, $125 million set aside for additional interest adjustments |
Key incentive |
Closing or converting a 360 Savings by October 2, 2025 results in an estimated payout that is about 15 percent higher than if the account remains open |
Court date |
November 6, 2025 fairness hearing to consider final approval |
First payments |
Expected to begin roughly 60 days after court approval is granted |
Official site |
Who Is Covered
You are included if you held a Capital One 360 Savings Account at any time between September 18, 2019 and June 16, 2025. The settlement includes individual and joint accounts. You do not need to submit a claim form to be eligible for a standard payment. The settlement administrator will use Capital One’s records to calculate and distribute payments.
Good to know
- If your contact or payment details have changed, update them with Capital One to prevent delays.
- Joint owners are also covered, with allocation handled according to the settlement plan’s formulas and account records.
How The $425 Million Will Be Shared
The settlement fund has two parts.
- Direct cash payments, $300 million
This portion compensates for the gap between interest actually paid on the 360 Savings and the interest that could have been earned on the 360 Performance Savings during the covered period. The administrator will apply a formula that accounts for balances and time in account. - Additional interest compensation, $125 million
This is intended to address customers who keep a 360 Savings beyond the main cutoff. It funds smaller initial payments for those who do not close or convert by the deadline, plus potential follow on interest adjustments.
Bigger payment if you act
Customers who close or convert their 360 Savings by October 2, 2025 are slated to receive an estimated payment that is about 15 percent higher than those who keep the account open past that date.
What Customers Need To Do
For most people, nothing is required to be included. Still, a few steps can help:
- Confirm contact details with Capital One so a check or electronic payment reaches you.
- Decide whether to close or convert your 360 Savings by October 2, 2025 if you want the higher estimated payout. You can also keep the account and still receive a payment, just at a lower amount with potential additional interest later.
- Track notices from the settlement administrator or from Capital One in online banking or email so you do not miss instructions.
Dates To Remember
- October 2, 2025
Deadline to close or convert a 360 Savings to qualify for the higher payment. Also the deadline to update contact information, object to the settlement, or opt out if you wish to pursue your own claim. - November 6, 2025
Court hearing to evaluate final approval of the settlement. - Roughly 60 days after approval
Target window when payments are expected to begin, assuming the court grants final approval and no appeal delays distribution.
Your Rights And Options
- Do nothing and stay in
You will receive a payment automatically if you are eligible. - Opt out
Remove yourself from the class and keep the right to sue Capital One separately. You will not receive a settlement payment. - Object
Remain in the class but tell the court why you disagree with the settlement terms. - Attend the hearing
You may appear on November 6, 2025 to express your views to the judge.
How Payments Will Likely Be Calculated
While the precise formula is contained in the settlement plan, the general approach compares interest credited to your 360 Savings with the interest that would have accrued in a 360 Performance Savings over the same span. Factors that typically influence the amount include:
- Average and peak balances during the covered period
- How long the funds stayed in the 360 Savings after September 18, 2019
- Whether you closed or converted the account by October 2, 2025
- Joint ownership factors and any prior credits
Practical Tips For Account Holders
- Review your statements from 2019 onward to understand your balances and how much time the account remained open.
- Consider rate alternatives even after the settlement. Evaluate current yields across savings, CDs, and money market accounts that match your liquidity needs.
- Keep documentation such as account numbers and historical statements in case the administrator requests verification.
- Watch for tax reporting. Settlement payments that represent interest shortfall may be taxable. Consult a tax professional.
- Beware of scams. Only respond to notices sent through Capital One channels or the official administrator. Never share credentials by phone or email with unsolicited contacts.
Frequently Asked Questions
1. Do I need to file a claim to receive money
No claim form is required for most customers. Eligibility will be determined from Capital One’s records and payments will be issued automatically.
2. What if I already closed my 360 Savings before October 2, 2025
You can still be included if you held the account during the covered dates. Ensure Capital One has your current contact details so payment can be delivered.
3. How do joint accounts get paid
Joint owners are included. The settlement plan uses account records to allocate payments. You do not need to split or assign the amount yourself.
4. Why is the payment higher if I close or convert by the deadline
The plan is designed to reward customers who move out of the legacy rate setup, which helps resolve ongoing interest differential more quickly.
5. When will I actually get paid
If the court grants final approval on November 6, 2025 and there are no appeals that delay distribution, payments are expected to begin roughly 60 days after approval.
Official site
https://www.capitalone.com
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