If you thought your Capital One savings account was earning top dollar, you might be in for a surprise.
Capital One recently agreed to pay $425 million to resolve allegations that it misled customers holding its 360 Savings accounts by failing to inform them about a more lucrative alternative, the 360 Performance Savings account.
This settlement came after New York Attorney General Letitia James accused the banking giant of pulling a classic bait-and-switch, promising high returns to loyal customers, then quietly rolling out better rates for newcomers while leaving existing savers in the dark.
The Alleged Bait-and-Switch Scheme
Between 2019 and 2024, Capital One introduced the 360 Performance Savings account, offering significantly higher interest rates compared to the 360 Savings account. While the 360 Savings account maintained an interest rate of 0.30%, the 360 Performance Savings account offered rates as high as 4.25% by August 2024.
The Consumer Financial Protection Bureau (CFPB) alleged that Capital One intentionally kept existing 360 Savings account holders unaware of the new, higher-yielding account. Capital One allegedly removed references to the 360 Savings account from its website, replaced them with information about the 360 Performance Savings account, and prohibited employees from informing customers about the new product.
How much savings customers lost
The original lawsuit brought by the Consumer Financial Protection Bureau estimates Capital One 360 Savings customers lost over $2 billion in interest. The $2 billion estimate is probably close to actual losses.
Let’s say you maintained $10,000 in a Capital One 360 Savings account at a 0.30% APY compounded daily for one year, you would earn approximately $30 in interest. In contrast, if you had the same $10,000 in a 360 Performance Savings account at a 4.25% APY compounded daily, you would earn about $433 over the same period.
Missing out on over $400 in interest in just one year might seem frustrating enough, but imagine the impact if you had $100,000 sitting in that same low-yield account. At a 0.30% APY, you’d only earn about $300 in interest for the entire year, while someone with the same balance in the 4.25% Performance Savings account would pocket over $4,300.
That’s a staggering difference of more than $4,000 lost simply because your money was parked in the wrong account. Over time, these missed earnings can add up to thousands, or even tens of thousands of dollars. Capital One was wrong for this, and now they have to pay.
How the $425 Million Settlement Came About
New York Attorney General Letitia James became involved and filed suit against Capital One after the Consumer Financial Protection Bureau dropped its case against the bank. The CFPB had initially sued Capital One, alleging that the bank’s practices with its 360 Savings accounts caused U.S. customers to lose out on more than $2 billion in interest.
However, following a change in leadership under the Trump administration, the CFPB has essentially been gutted of its power and staff. As a result, they dismissed the lawsuit in February 2025, leaving affected Capital One customers without a federal remedy.
Recognizing the scale of consumer harm and the lack of federal enforcement, Attorney General James stepped in to “ensure that Capital One does not escape accountability” and to seek restitution for New York customers who were misled and lost out on millions of dollars in interest due to Capital One’s actions.
Her office essentially picked up where the CFPB left off and now we have a $425 million settlement that applies to all eligible Capital One 360 Savings account holders across the United States.
When Capital One 360 Customers Can Make a Claim
Customers eligible for the Capital One settlement should be notified directly and provided with instructions on how to make a claim. The formal settlement agreement, along with the preliminary approval, is expected to be filed by June 6, 2025, according to the court order.
The judge’s signature on the preliminary order will finalize the settlement process, with a final hearing anticipated by mid-June. After judicial approval, Capital One is required to notify all customers who are eligible for the settlement. The settlement applies to both current and former Capital One 360 Savings account holders nationwide who had an account at any point from September 18, 2019, onward.
Keep an eye out for instructions on how to make a claim and I’ll definitely keep you updated. Capital One hoped nobody would notice they cheated their customers but thankfully, someone did.
