Millions of Capital One customers are set to benefit from one of the largest banking settlements in recent years. The company has agreed to a $425 million payout to resolve claims that customers with 360 Savings Accounts were not properly informed about better earning opportunities when the bank launched its newer savings product, the 360 Performance Savings Account, in 2019.
The Dispute Behind the Settlement
The lawsuit centers on Capital One’s decision to introduce the 360 Performance Savings Account, which offered higher interest rates than the older 360 Savings Account. However, many customers unknowingly kept their money in the older account and missed out on higher interest earnings. The plaintiffs alleged that the bank failed to clearly notify account holders about the change, resulting in lost potential income. Although Capital One has denied any wrongdoing, the bank opted for a settlement to avoid a lengthy legal process and ensure timely compensation for affected customers.
Who Will Receive Compensation
This settlement covers a broad group of account holders. Anyone who had an active Capital One 360 Savings Account between September 18, 2019, and June 16, 2025, is automatically included. Both individual and joint account holders during this period are eligible for payouts without needing to take extra steps to confirm their participation.
How the Settlement Funds Will Be Distributed
The $425 million will be split into two portions. About $300 million is allocated for direct cash payments to compensate for the missed interest customers could have earned had they switched to the Performance Savings Account. The remaining $125 million will go toward additional interest compensation for customers who choose to keep their 360 Savings Account open beyond the settlement deadline.
No Claim Form Required
One of the most customer-friendly aspects of this settlement is that eligible individuals do not need to submit claim forms. Payments will be sent automatically, either through direct deposit or by check. Customers are encouraged to update their account or contact information to avoid any delays. Those who close or convert their 360 Savings Account by October 2, 2025, may receive up to 15% more in their settlement payout compared to those who keep the account open. Customers who keep their accounts open will still receive a smaller share of the payout, along with potential additional interest in the future.
Key Dates to Keep in Mind
The settlement process follows a timeline with several important dates. Customers must update their details, close or convert their accounts, or file objections by October 2, 2025. The court will hold a final approval hearing on November 6, 2025, after which payments are expected to begin within roughly 60 days.
Understanding Your Rights
Customers have several options under this settlement. They can remain part of the settlement and automatically receive their share, opt out if they wish to pursue separate legal action, or file objections if they disagree with the settlement terms. Those interested in voicing their opinions publicly can attend the November 6 hearing to present their views to the court.
Why This Settlement Matters
This case serves as an important reminder for consumers to regularly review their financial products and ensure they are getting the best available terms. Many account holders missed years of potential earnings simply because they were unaware of better interest rates. For Capital One, this settlement resolves a costly legal battle without admitting fault, while for customers, it delivers long-overdue compensation and reinforces the need for clearer communication and transparency in the banking industry.