Read the full article on KETV 7
A lawsuit filed against Capital One alleging that it paid higher interest rates on new accounts than on similar existing ones has reached a $425 million settlement. The settlement, approved by a judge, means people who had a certain savings account during a four-year period will receive settlement payments on or about July 21, as long as there is no appeal in the case. Capital One has denied any wrongdoing. What was the lawsuit about?Capital One started offering “360 Savings” accounts in 2013. In 2019, it began offering a new savings account, called 360 Performance Savings, and stopped offering new 360 Savings accounts. Existing accounts stayed open. Since then, Capital One paid a higher — sometimes significantly higher — interest rate on the Performance Savings accounts than on the 360 Savings accounts. The plaintiffs in the case alleged that the two accounts are otherwise the same and that Capital One never told 360 Savings customers about the newer, higher-rate account.At one point, Capital One paid a 4.35% APY on 360 Performance Savings compared to a 0.30% APY on 360 Savings.“Capital One assured high returns with no catches, then pulled the rug out from under their customers and hoped nobody would notice,” New York State Attorney General Letitia James said when she announced the lawsuit in May 2025.What does the settlement do?Under the settlement, Capital One will send cash payments to settlement class members based on the amount of interest they would have earned if their 360 Savings account(s) had paid the interest rate that then applied to the 360 Performance Savings account. There’s no set amount that customers will receive. It will also begin paying the interest rate for the 360 Performance Savings account to holders of the 360 Savings account going forward, making the interest rates on the two accounts identical.Am I eligible to receive a payment?Anyone who had a Capital One 360 Savings account at any time from Sept. 18, 2019, through and including June 16, 2025 — including joint and co-holders of 360 Savings accounts — is part of the settlement class unless they request to be excluded.Unless you opt out of the settlement, you are automatically eligible to receive a check or an electronic payment for your cash payment. You don’t need to file a claim.The deadline to sign up for electronic payment instead of a check was March 30. If your payment comes out to less than $5 and you did not sign up for electronic payment before that deadline, you will not receive anything. If you made no selection and your share is more than $5, a check will automatically be mailed to your last known address.More information is available on the settlement website.
A lawsuit filed against Capital One alleging that it paid higher interest rates on new accounts than on similar existing ones has reached a $425 million settlement.
The settlement, approved by a judge, means people who had a certain savings account during a four-year period will receive settlement payments on or about July 21, as long as there is no appeal in the case. Capital One has denied any wrongdoing.
Advertisement
What was the lawsuit about?
Capital One started offering “360 Savings” accounts in 2013. In 2019, it began offering a new savings account, called 360 Performance Savings, and stopped offering new 360 Savings accounts. Existing accounts stayed open.
Since then, Capital One paid a higher — sometimes significantly higher — interest rate on the Performance Savings accounts than on the 360 Savings accounts. The plaintiffs in the case alleged that the two accounts are otherwise the same and that Capital One never told 360 Savings customers about the newer, higher-rate account.
At one point, Capital One paid a 4.35% APY on 360 Performance Savings compared to a 0.30% APY on 360 Savings.
“Capital One assured high returns with no catches, then pulled the rug out from under their customers and hoped nobody would notice,” New York State Attorney General Letitia James said when she announced the lawsuit in May 2025.
What does the settlement do?
Under the settlement, Capital One will send cash payments to settlement class members based on the amount of interest they would have earned if their 360 Savings account(s) had paid the interest rate that then applied to the 360 Performance Savings account. There’s no set amount that customers will receive.
It will also begin paying the interest rate for the 360 Performance Savings account to holders of the 360 Savings account going forward, making the interest rates on the two accounts identical.
Am I eligible to receive a payment?
Anyone who had a Capital One 360 Savings account at any time from Sept. 18, 2019, through and including June 16, 2025 — including joint and co-holders of 360 Savings accounts — is part of the settlement class unless they request to be excluded.
Unless you opt out of the settlement, you are automatically eligible to receive a check or an electronic payment for your cash payment. You don’t need to file a claim.
The deadline to sign up for electronic payment instead of a check was March 30. If your payment comes out to less than $5 and you did not sign up for electronic payment before that deadline, you will not receive anything. If you made no selection and your share is more than $5, a check will automatically be mailed to your last known address.
More information is available on the settlement website.
