Capital One to Pay $425 Million Settlement Over 360 Savings Account Interest Rates

Key facts

• Settlement approved on April 20, 2026, by a federal judge.
• Capital One will pay $425 million to resolve a class action lawsuit.
• Lawsuit alleges Capital One deceptively marketed 360 Savings accounts, cheating customers of over $2 billion in interest.
• CFPB accused Capital One of freezing 360 Savings rates while offering a nearly identical product, 360 Performance Savings, with up to 14 times higher interest.
• Eligible account holders: anyone with a 360 Savings account between Sept. 18, 2019 and June 16, 2025.
• Payments scheduled for July 27, 2026, if no appeal is filed.
• Capital One denies all allegations and wrongdoing, stating the settlement is not an admission of liability.

Settlement Payouts Set for July 2026

A federal judge has approved a $425 million settlement from Capital One to resolve a class action lawsuit over interest rates on its 360 Savings accounts. The approval, granted on April 20, sets the stage for payments to eligible account holders. If no appeal is filed, settlement checks will be mailed around July 27, 2026. Should an appeal be lodged, payments will be postponed until the appeal is resolved.

Allegations of Deceptive Marketing and Lost Interest

The lawsuit alleges that Capital One deceptively marketed its 360 Savings accounts, cheating millions of customers out of more than $2 billion in interest. The Consumer Financial Protection Bureau (CFPB) accused the bank of failing to raise interest rates on the 360 Savings account, instead freezing them at a low level while rates nationwide rose. Around the same time, Capital One created a virtually identical product, the 360 Performance Savings account, which differed only in that it paid substantially more interest — at one point more than 14 times the 360 Savings rate.

Capital One Denies Wrongdoing but Settles

Capital One has denied all allegations of wrongdoing and liability. In the settlement agreement, the bank stated: "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, both parties decided to settle the lawsuit. The settlement is not an admission of guilt.

Who Is Eligible and What to Expect

Anyone who held a 360 Savings account between September 18, 2019, and June 16, 2025, is eligible for the settlement. Eligible account holders do not need to file a claim; they will automatically receive a check. However, those who wished to be excluded from the settlement were required to opt out by an October 2, 2025 deadline. Payments are expected to be distributed automatically around July 27, 2026.

Regulatory Background and Consumer Impact

The CFPB's investigation highlighted that Capital One kept 360 Savings rates low while introducing a higher-yielding alternative, effectively shortchanging existing customers. The lawsuit claimed that the bank's actions cost customers billions in lost interest. The $425 million settlement aims to compensate those affected, though the amount represents only a fraction of the alleged $2 billion in lost interest.

What Comes Next: Appeals and Payment Timeline

The settlement's timeline hinges on whether any party files an appeal. If no appeal is filed within the allowed period, payments will proceed as scheduled. If an appeal is filed, the distribution will be delayed until the appellate process concludes. Capital One has not indicated whether it will appeal, and the plaintiffs have not announced any plans to do so.

The bottom line

• Capital One will pay $425 million to settle claims it deceived customers on 360 Savings interest rates.
• The CFPB found Capital One froze 360 Savings rates while offering a higher-yield product to new customers.
• Eligible account holders from Sept. 2019 to June 2025 will automatically receive checks around July 27, 2026.
• Capital One denies all allegations and the settlement is not an admission of liability.
• An appeal could delay payments; otherwise, distribution is set for mid-2026.