Capital One settlement
In Re: Capital One Savings Account Interest Rate Litigation
Date: May 16, 2025
Issue: Capital One’s settlement with a class of 360 Savings account holders to resolve allegations that it deceptively advertised its 360 Performance Savings accounts as high-interest savings products.
Case Summary: Capital One agreed to pay $425 million to resolve a class action alleging it deceptively advertised its 360 Performance Savings accounts as high-interest savings products.
On Feb. 17, 2012, Capital One announced it had acquired ING Direct USA, an online bank offering high-interest savings accounts to U.S. consumers. After completing the acquisition, Capital One converted those ING Direct accounts into Capital One 360 Savings accounts. In 2019, Capital One launched a new online savings product called the 360 Performance Savings account. Plaintiffs from 18 states alleged the new account offered an annual percentage yield (APY) of 1.90%, while their existing 360 Savings accounts earned only 1.00%. They also claimed that Capital One failed to inform 360 Savings account holders about the new account or that it provided a higher interest rate.
Plaintiffs sued Capital One in the Eastern District of Virginia, alleging Capital One denied them higher interest earnings by creating the duplicate 360 Performance Savings account and concealing that it offered a higher rate than their original accounts. Plaintiffs claimed that Capital One violated the Virginia Consumer Protection Act, similar statutes in 17 other states, and breached both its contract and the implied covenant of good faith and fair dealing.
Capital One moved to dismiss the case, arguing that plaintiffs failed to state a plausible claim. In November, Judge David Novak partially granted the motion and dismissed claims under the Ohio Deceptive Trade Practices Act, as well as plaintiffs’ claims for unjust enrichment and promissory estoppel.
On May 16, 2025, the parties filed a joint notice of class action settlement terms. Under the settlement agreement, Capital One will pay $300 million to class members to compensate for the interest they missed out on, as if their 360 Savings accounts had earned the same rate as the 360 Performance Savings account. Capital One will also pay $125 million as an additional interest payment to settlement class members who continue to maintain 360 Savings accounts.
Bottom Line: Capital One does not admit to or deny any of the claims against it.
Documents: Settlement notice
