Capital One 360 Savings Lawsuit: The $425 Million Settlement

What Happened

Capital One’s “360 Savings” was marketed as a high-yield online savings account. But as interest rates rose, the bank allegedly left 360 Savings customers earning a tiny rate — around 0.30% — while it quietly launched a nearly identical new account, “360 Performance Savings,” that paid far more, up to roughly 4.30%. Existing customers were not automatically moved or clearly told they could switch, so many kept earning a fraction of what the bank was offering new customers for essentially the same product. Regulators and class-action plaintiffs said this cheated loyal savers out of billions in interest.

The heart of the complaint is that a bank rewarded new money while quietly shortchanging its existing, trusting customers.

The Settlement

The federal consumer regulator sued Capital One over the practice in early 2025 but later dropped that particular case. A separate private class action, however, produced results: in 2025 Capital One agreed to a $425 million settlement. About $300 million is earmarked for cash payments to eligible 360 Savings customers based on the balances they held, and roughly $125 million is set aside to boost the interest paid to customers who keep their 360 Savings accounts. Eligibility broadly covers people who held a 360 Savings account during the relevant period.

So even though the government case ended, the class action delivered real money and higher going-forward interest.

What Savers Should Know

The broad lesson applies to every bank: high-yield accounts can quietly fall behind, and banks do not always move you to their best current rate. Check your savings rate periodically against what your bank offers new customers and against competitors, and move your money or switch account tiers if you are being underpaid. Loyalty rarely earns the best rate; attention does.