Headline: Federal Judge Approves $425M Capital One Settlement Over Unequal Savings Rates — Payouts and Rate Fixes Coming to 360 Savings Holders
A federal judge signed off on a $425 million class-action settlement with Capital One on April 20 covering current and former holders of the bank’s 360 Savings accounts. The suit accused Capital One of quietly steering newer customers into a higher-yield product while continuing to market the older 360 Savings as “high-yield” without telling existing customers about the better-paying option. Capital One has consistently denied wrongdoing.
What happened
- In 2019 Capital One launched 360 Performance Savings, which court filings say was identical to the older 360 Savings product except for a materially higher interest rate.
- Plaintiffs allege Capital One marketed 360 Savings as high-yield while no longer offering it to new customers and instead offering the higher-rate 360 Performance Savings to newcomers.
- The lawsuit claims the bank avoided paying more than $2 billion in interest to 360 Savings customers between 2019 and 2025. At the widest spread, some 360 Savings customers earned as little as 0.30% while others received 4.35% on the newer account.
Damages assessment and settlement size
- A court-appointed Special Master estimated a reasonable damages range of roughly $742 million to $1.098 billion. By that measure, the $425 million settlement fund represents about 38%–57% of what class members could have recovered if plaintiffs had prevailed at trial and on appeal.
- An earlier $300 million settlement was rejected by the court in late 2025; after further negotiations the parties increased the deal to $425 million, which was approved this April.
Who’s covered
- Anyone who held a Capital One 360 Savings account at any time between September 18, 2019 and June 16, 2025 is eligible, including joint or co-holders. Capital One will send payments only to the primary account holder on record.
- If you didn’t opt out by the March 30, 2026 deadline, you remain in the settlement class and should receive payment if your share is $5 or more via mailed check to your last known address. Class members who opted into electronic payment by that deadline will get their funds regardless of amount.
- No claim filing is required.
How payments are calculated
- Individual payouts are based on how much more interest a 360 Savings account would have earned had it received the 360 Performance Savings rate during the covered period.
- The $425 million fund will first cover attorneys’ fees and administrative costs; the remainder will be distributed proportionally to eligible class members.
- The settlement administrator has not yet announced individual payment amounts.
Other relief and timing
- Beyond the cash fund, Capital One agreed to pay 360 Savings account holders the same interest rate it applies to 360 Performance Savings going forward — so the deal delivers both a lump-sum distribution and an ongoing rate change for older accounts.
- The settlement’s payout timeline targets around July 21, 2026 for disbursements. If an appeal is filed, payments will be postponed until appeals are resolved.
Why it matters (and what crypto users should note)
- For savers, this highlights the impact that small rate differentials can have over time — the alleged gap here ran into the billions.
- For crypto and DeFi users who compare yields across traditional banks and on-chain products, it’s a reminder that transparency and consistent treatment of customers are crucial in any yield-bearing product.
Court filings from Class Counsel characterized the $425 million fund plus the future equalization of rates as a strong outcome given the costs, risks, and delays that would accompany trial and appeals.
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