Capital One 360 Savings Settlement: $425M Payout Approved for Customers

Federal Judge Approves $425 Million Capital One Settlement Over Savings Account Practices

A federal judge has approved a $425 million settlement between Capital One and customers who held 360 Savings accounts, resolving allegations that the bank deceptively marketed the accounts while paying lower interest rates than a nearly identical product. The settlement, granted final approval on April 20, 2026, includes automatic payments to eligible account holders and a rate-match benefit for current customers.

What Triggered the Lawsuit?

The Consumer Financial Protection Bureau (CFPB) accused Capital One of freezing interest rates on its 360 Savings accounts at artificially low levels while broader market rates rose. During the same period, the bank introduced a new product, 360 Performance Savings, which paid substantially higher interest—at one point more than 14 times the rate of the older 360 Savings accounts, according to the CFPB.

“Around the same time, Capital One created a virtually identical product, ‘360 Performance Savings,’ that differed from 360 Savings only in that it paid out substantially more in interest—at one point more than 14 times the 360 Savings rate.”

Consumer Financial Protection Bureau

The CFPB alleged that Capital One’s practices cheated customers out of more than $2 billion in potential interest earnings by failing to disclose the rate disparity while marketing 360 Savings as a high-yield account. Capital One denied any wrongdoing but agreed to the settlement to resolve the litigation.

“Capital One denies all claims asserted against it in the Action, denies all allegations of wrongdoing and liability, and denies all material allegations of the Complaint. The Court has not determined that Capital One did anything wrong; instead, the Plaintiffs and Capital One have decided to settle the lawsuit.”

Settlement agreement

Who Qualifies for Payments?

Eligibility for the settlement includes anyone who held a Capital One 360 Savings account at any point between September 18, 2019, and June 16, 2025. No claim form is required—payments will be distributed automatically to eligible customers. Those who wished to opt out of the settlement were required to do so by October 2, 2025.

How Payments Will Be Calculated

The $425 million settlement fund will first cover legal fees, capped at 15%, and administrative costs, which could reduce the total available for customer payouts by approximately $63.75 million or more. The remaining funds will be distributed among eligible account holders based on the difference between the interest they actually earned in their 360 Savings accounts and the higher rates paid on 360 Performance Savings accounts during the same period.

In addition to cash payments, current 360 Savings account holders will receive an interest rate match benefit, ensuring their accounts earn rates comparable to those of 360 Performance Savings accounts for at least two years following the settlement’s effective date.

When Will Payments Be Issued?

If no appeals are filed, payments are scheduled to be distributed on or around July 27, 2026. However, if an appeal is lodged, the payment timeline will be postponed until the appeal is resolved. Checks will not be issued for amounts under $5 unless customers previously selected electronic payment options.

Next Steps for Customers

Eligible customers do not need to take any action to receive their payments. Capital One will automatically issue checks or electronic payments to those included in the settlement. For the most up-to-date information, account holders can visit the official settlement website at capitalone360savingsaccountlitigation.com.