Capital One has agreed to pay $425 million to settle a claim that it misled millions of customers who signed up for a high-yield savings account — only to discover that it offered less interest than advertised.
The $152 billion financial giant came to terms on a settlement with the office of New York State Attorney General Letitia James.
The preliminary agreement between Capital One and James’s office was approved last week by a federal judge in Virginia.
In 2019, the bank rolled out a two-track savings strategy that included its “360 Performance Savings” account, which was touted as paying significantly higher interest.
But the company continued to market its older “360 Savings” account as a high-yield option, despite paying rates that at times were more than 14 times lower than the newer account.
James alleged in a lawsuit filed against Capital One that the lender kept interest rates artificially low in the “360 Savings” account despite billing it as one that offered higher yields.
In 2022, the “360 Savings” plan offered a rate of just 0.3% — which was well below the average that can be found on the market at the time, according to James’s office.
Most eligible customers will get a single, automatic payment based on how long they held a “360 Savings” account and how much money they kept in it. Some customers could see a slightly bigger payout.
Those who closed their “360 Savings” account or switched to a “360 Performance Savings” account by Oct. 2 of last year are expected to receive payments about 15% higher than customers who left their accounts untouched.
Anyone who had a Capital One “360 Savings” account at any point between Sept. 18, 2019 and June 16, 2025, qualifies for the settlement.
No claim form is required. Payments of $5 or more will be sent automatically, either by check or electronically, depending on the option previously selected.
A final court hearing is set for April when a judge will decide whether to give the settlement final approval and green-light the payouts.
