A federal judge in Alexandria, Virginia, has given final approval to Capital One Financial’s $425 million class-action settlement concerning its 360 Savings accounts. U.S. District Judge David J. Novak’s order not only clears the way for compensation but also requires the bank to align the 360 Savings interest rate with that of its 360 Performance Savings account moving forward.
Payout Timeline and Eligibility
According to the official settlement website, payments are scheduled to go out on or around July 21, unless an appeal is filed. If an appeal occurs, disbursements will be paused until the appeal is resolved. The settlement covers all individuals and organizations that held a Capital One 360 Savings account between September 18, 2019, and June 16, 2025. Joint and co-holders are included, but payments will be made solely to the primary accountholder. No claim form is required for class members.
How Individual Payouts Are Calculated
The exact amount each person receives will vary. Payouts are based on the additional interest that a 360 Savings account would have earned if it had been credited with the higher 360 Performance Savings rate during the class period. This calculated amount is then deducted from the net settlement fund. For payments under $5, an electronic payment option is required; for larger sums, a check can be mailed if no electronic method is selected by the deadline.
Background of the Dispute
The lawsuit accused Capital One of maintaining lower interest rates on 360 Savings accounts compared to its 360 Performance Savings account, while continuing to market the older account without adequately informing customers that it was no longer the bank’s premier high-yield online option. According to Virginia Lawyers Weekly, the 360 Savings account was limited to just 0.3% APY, while the 360 Performance Savings account reached 4.35% APY in 2024. Capital One denies any wrongdoing, and the settlement cannot be used as evidence of liability or fault.
Terms for Existing Savers
Under the settlement, Capital One must keep both 360 Savings and 360 Performance Savings accounts open for at least two years and match interest payments within 14 days after the settlement becomes effective. Alternatively, the bank may convert all 360 Savings accounts into 360 Performance Savings accounts. This provision ensures that current customers benefit from the higher rates going forward.
Legal and Financial Details
The settlement comes after a previous version was rejected by Judge Novak in November. According to Reuters, the earlier proposal would have returned less than 10% of lost interest to many depositors, drawing opposition from 18 states, including New York. The revised deal, which received preliminary approval in January, was hailed by plaintiffs’ counsel Philip Black as “a great result for the class.” Wolf Popper, the class counsel, estimates total relief at over $1.2 billion when combining immediate cash payments and future rate matching.
Fees and Remaining Funds
The court approved $32 million in attorneys’ fees and roughly $1.81 million in expenses from the settlement fund. Each of the 26 class representatives will receive a $10,000 service award. Any leftover funds after distributions will be donated to the Richmond nonprofit Feed More.
Market Context
The case highlights the competitive landscape for online savings accounts, where interest rates are a key differentiator. Competitors such as Ally Bank and Marcus by Goldman Sachs also offer variable rates that can change at any time. As of April 24, Marcus by Goldman Sachs posted a 3.50% APY on its online savings account. Capital One’s settlement underscores the importance of transparent rate disclosures in the digital banking sector.
Customers are advised to monitor settlement updates and be aware that they will not be asked for Social Security or employer identification numbers. The settlement administrator will handle all communications as the payout date approaches.
