Capital One has received early court approval for a $425 million settlement tied to a class-action lawsuit over how much interest it paid on certain savings accounts.
The lawsuit centers on Capital One 360 Savings accounts and covers customers who had these accounts between September 18, 2019, and June 16, 2025. Customers claimed the bank did not pay the interest it promised, even as interest rates across the country were rising.
Under the proposed settlement, $300 million will go directly to former account holders who were affected. This money is meant to make up for the interest they say they should have earned during that time.
The remaining $125 million will be used to boost interest payments for current customers who still have 360 Savings accounts. According to the agreement, these customers will receive an interest rate that is at least double the national average for savings accounts until the settlement funds run out.
This settlement comes after the Consumer Financial Protection Bureau (CFPB) filed a separate lawsuit against Capital One earlier this year. The CFPB accused the bank of misleading customers by advertising its savings accounts as offering some of the best and highest interest rates in the country, while allegedly keeping rates low as market rates climbed.
CFPB Director Rohit Chopra said at the time that banks should not lure customers with promises they don’t keep.
Capital One has denied any wrongdoing, but still agreed to the settlement to resolve the case.
If finalized, the agreement would impact millions of current and former customers, offering compensation to those who say they missed out on higher interest and giving current savers better rates going forward.
