Capital One $425M Settlement on 360 Savings Rates

A proposed class action settlement in the Eastern District of Virginia would resolve claims that Capital One, N.A. and Capital One Financial Corporation failed to pay competitive interest on certain online savings accounts after introducing a higher-yield product. The multidistrict litigation, In re: Capital One 360 Savings Account Interest Rate Litigation, No. 1:24-md-03111-DJN (E.D. Va.), centers on the relationship between the legacy “360 Savings” account and the later “360 Performance Savings” account, including allegations of deceptive marketing and omission of material information. Capital One denies wrongdoing, and the court has not determined liability. A settlement notice issued from Alexandria, Virginia on March 4, 2026, outlined both monetary relief and forward-looking rate changes for eligible accountholders.

Account Products at Issue and the Core Allegations

Capital One has offered “360 Savings” accounts since February 2013. On September 18, 2019, it began offering a separate “360 Performance Savings” account and stopped opening new 360 Savings accounts for new customers while continuing to service existing 360 Savings accounts. Plaintiffs contend that after the 2019 product change, Capital One paid a higher interest rate—sometimes substantially higher—on 360 Performance Savings than on 360 Savings, even though plaintiffs allege the accounts are otherwise identical in relevant features.

The claims focus on whether Capital One’s handling and presentation of the 360 Savings product misled accountholders during the period when the newer product carried higher yields. According to the allegations, Capital One failed to raise 360 Savings interest rates in a manner commensurate with the 360 Performance Savings rate, deceptively marketed 360 Savings as a high-yield online savings option, and concealed that 360 Savings was no longer its high-yield offering as well as the existence of the higher-rate 360 Performance Savings account from 360 Savings accountholders. Capital One denies all allegations and liability, and the parties opted for settlement without a determination of wrongdoing by the court.

Settlement Class, Monetary Fund, and Payment Mechanics

The Settlement Class is defined as all persons or entities who were 360 Savings accountholders between September 18, 2019, and June 16, 2025. The class definition includes joint holders and co-holders, but cash payments are directed to primary account holders. The settlement structure is designed to compensate class members based on historical balances during the class period, using a methodology tied to interest-rate differentials between the two products.

Under the proposal, Capital One would fund a $425 million Settlement Fund to finance cash payments, with allocations reflecting the difference between interest actually paid on 360 Savings and the interest that would have been paid had the account earned the contemporaneous 360 Performance Savings rate. The settlement materials offered examples to illustrate potential harm: at times, the older account was described as paying 0.30% while the newer account paid 4.35%, and a hypothetical $10,000 balance held for a year during the eligible period was used to contrast $30 in interest at 0.30% APY with $330 at 3.30% APY. The notice also states that attorneys’ fees (requested up to 15% of the fund) plus expenses, administrative costs, service awards for class representatives, and opt-outs or unclaimed amounts can affect the net distribution.

Notice Procedures, Opt-Out Rights, and Approval Timeline

The notice process describes an automatic distribution framework: class members generally do not need to submit a claim to receive a cash payment. If a class member does nothing, the administrator would mail a check to the last known address for payments of $5 or more; payments under $5 would not be issued unless the recipient opted into electronic payment by the stated deadline. The settlement website provided a mechanism for selecting electronic payment, with a deadline of March 30, 2026, and the notice indicated prior electronic selections made for an earlier proposed settlement in the matter would carry over.

Class members retained the right to exclude themselves by opting out, with the consequence that opt-outs receive no benefits and are not bound by the release. Those who did not opt out would be bound and would release claims that were or could have been brought in the litigation and are covered by the settlement. The deadline to opt out or object was March 30, 2026, and the court scheduled a final approval hearing for April 20, 2026, to consider approval, any timely objections, requested fees and expenses, and service awards. Separate public reporting described the settlement as having been approved by a federal judge, with anticipated distributions around July 21, 2026 if no appeal is filed; any appeal would be expected to delay payments until resolved.

Prospective Interest-Rate Changes and Practical Implications

In addition to cash compensation, the settlement includes forward-looking relief that alters the ongoing interest treatment of existing 360 Savings accounts. Capital One must align the interest rate paid on 360 Savings with the rate paid on 360 Performance Savings going forward, effectively making the rates identical. For accountholders who still maintain a 360 Savings account, the settlement materials indicated the increase would be automatic, removing the need for customers to open a different savings product to obtain the higher rate.

This prospective term is notable in consumer financial product settlements because it addresses the alleged rate disparity at the product level, not solely through retrospective payments. From a compliance and risk perspective, the structure combines backward-looking calculations based on contemporaneous rate spreads with a standardized forward rate policy that may reduce future disputes over disclosure and product positioning. The plaintiff is represented by Bursor & Fisher, P.A., according to court filings.