A federal judge rejected Capital One’s proposed $425 million class action settlement on November 7, 2025, calling it too small and unfair to millions of affected savers. The lawsuit accused the bank of keeping legacy 360 Savings accounts at rock-bottom rates (as low as 0.3% APY) while offering new customers up to 4.3%+ on nearly identical 360 Performance Savings accounts — without telling existing customers. Here’s the latest update as of November 18, 2025.
Why the Judge Rejected the Settlement
U.S. District Judge said the deal would pay customers less than 10% of their estimated $2+ billion in lost interest. It also let Capital One continue paying lower rates on old accounts going forward.
- $300M cash fund for back interest (after fees, even less per person).
- $125M for slightly higher future interest — but still far below Performance rates.
The judge ruled this benefits Capital One more than customers.
Who Would Have Been Eligible?
If approved, automatic payments (no claim needed) would go to anyone who held a Capital One 360 Savings account (not Performance) anytime from September 18, 2019, to June 16, 2025.
- Both open and closed accounts qualified.
- Closing or converting by October 2, 2025, gave ~15% larger cash payout (no future interest boost).
Current Status: Settlement Rejected — No Payments Yet
- Final approval hearing: November 6, 2025 → Rejected November 7.
- Parties can appeal, renegotiate a bigger/better deal, or go to trial.
- No payments will be sent until (and if) a new agreement gets court approval.
The case is ongoing — customers remain in low-rate accounts.
Official site (capitalone360savingsaccountlitigation.com) will post updates.
What Should 360 Savings Customers Do Now?
- Keep watching the official settlement website or sign up for email alerts.
- Consider switching to the higher-rate 360 Performance Savings (Capital One now allows easy conversion online or by phone).
- Monitor your account — many customers report finally getting rate increases in late 2025, possibly due to lawsuit pressure.
FAQs About the Capital One 360 Savings Settlement
Was the $425 million settlement approved?
No — a federal judge rejected it on November 7, 2025, saying it was inadequate.
Will I still get money automatically?
Not right now. Payments are on hold until a new deal (or trial outcome) happens.
Can I still close my account for a bigger payout?
That option ended October 2, 2025, and is irrelevant since the settlement was rejected.
Is Capital One raising rates on old 360 Savings accounts?
Some customers report yes (now closer to Performance rates), but it’s not guaranteed or part of a settlement yet.
Where can I get official updates?
Only capitalone360savingsaccountlitigation.com — ignore viral posts promising checks soon.
This rejection is actually good news for consumers: it forces Capital One back to the table for a fairer deal. The bank lost billions in potential interest — now they may have to pay more. Stay patient, check the official site regularly, and consider moving your money to a truly high-yield account in the meantime. Your savings deserve the best rate available!