On November 7, 2025, a federal judge rejected Capital One’s proposed $425 million class action settlement for millions of 360 Savings account holders who earned rock-bottom interest while new customers got much higher rates. The judge called the payout “too small” and unfair, leaving customers stuck with low yields. Here’s the latest on this ongoing case and what it means for you.
Why Capital One Faced the Lawsuit
Capital One marketed its older 360 Savings accounts as “high-interest” but froze rates at just 0.3% APY for years. Meanwhile, it quietly launched the nearly identical 360 Performance Savings account in 2019 with rates up to 4.35% APY — but never told existing customers or automatically switched them.
This two-tier system allegedly cost savers over $2 billion in lost interest. A separate CFPB probe dropped earlier in 2025, but the class action continued.
Details of the Rejected $425M Settlement
The proposed deal included:
| Component | Amount | Purpose |
|---|---|---|
| Cash Fund | $300 million | One-time payments based on missed interest |
| Future Interest Fund | $125 million | Boosted rates for accounts kept open |
| Total | $425 million | Compensation without admitting wrongdoing |
- Eligibility: Anyone with a 360 Savings account from Sept. 18, 2019 – June 16, 2025 (current or former holders).
- No claim form needed — payments were to be automatic.
- Option: Close account by Oct. 2, 2025 for ~15% larger cash payout (vs. smaller cash + future interest).
The judge blocked it, saying it recovered less than 10% of damages and let Capital One keep profiting from low rates.
Current Status and Next Steps
- Settlement rejected Nov. 7, 2025 — no payments anytime soon.
- Case returns to court; parties may negotiate a bigger deal or go to trial.
- Official site: capitalone360savingsaccountlitigation.com (check for updates).
- Final approval hearing was Nov. 6, 2025 — now delayed indefinitely.
Capital One denies wrongdoing and says rates were disclosed in account terms.
What Should Affected Customers Do?
- Monitor your email/mail for official notices.
- Visit the settlement website or call 1-888-832-2704 for status.
- Consider switching to higher-yield accounts (Capital One now pays the same high rate on both products).
- Compare savings rates elsewhere — many online banks offer 4-5% APY with no tiers.
FAQs About the Capital One 360 Savings Settlement
Am I still eligible if I had a 360 Savings account?
Yes — the class includes holders from Sept. 18, 2019 to June 16, 2025. Rejection doesn’t change eligibility; it delays/blocks this deal.
When will payments happen now?
Unknown — no payouts until a new agreement or court ruling. Could be months or years.
Did the October 2 deadline matter anymore?
No, since the settlement was rejected.
Is Capital One raising rates on old accounts?
Post-lawsuit, they aligned rates, but legacy accounts previously earned far less.
Can I still sue Capital One individually?
Possibly, but most are bound by the class unless you opted out earlier.
This rejected settlement highlights growing scrutiny on banks treating loyal customers fairly. While frustrating, it could lead to a better outcome for savers. Stay updated via the official site, and always review your account statements — your money deserves the best rates available. Shop around today for stronger returns! (638 words)