It is crunch time for many Capital One customers: you have until October 2 to secure your part of a $425 million settlement tied to allegations that the bank shortchanged certain savings accounts. If you ever held a Capital One 360 Savings account between September 18, 2019, and June 16, 2025, this could affect you.
What is the capital one $425 million settlement about?
The settlement resolves a class action claiming that Capital One failed to raise interest rates on its legacy 360 Savings accounts, even as it introduced a newer 360 Performance Savings product that paid higher yields.
Under the terms:
- $300 million is being allocated to compensate account holders for interest they allegedly missed out on.
- $125 million is reserved for additional interest payments for those who keep their 360 Savings accounts open after October 2.
- Capital One does not admit wrongdoing under the settlement.
A judge must give final approval before payments can be distributed. The final hearing is set for November 6, 2025.
Recommendation:
When did the government last shut down — and what happened?
Who is eligible for a payout?
You may qualify if you:
- Held a Capital One 360 Savings account at any time between September 18, 2019 and June 16, 2025 (whether or not the account is still open).
- Are listed as a primary, joint, or co-holder of such an account.
You do not need to submit a traditional claim form. All class members are automatically eligible to receive a payment.
However, you do need to take one action by October 2 if you want to:
- Update your preferred payment method
- Elect to close your account early to get a more favorable one-time payout
- Update your address or other details
If you fail to do that, you might miss out on certain benefits or default choices might apply.
How will the payments be calculated?
Your payout is based on:
- How long you held the account during the class period
- The amount of interest you would have earned if your 360 Savings account had matched the interest rate of the 360 Performance Savings account
If your 360 Savings account is closed on or before October 2, 2025, your one-time “class cash payment” may be about 15 percent larger than if you leave it open.
If instead you keep your account open beyond October 2, you get:
- A (slightly lower) one-time cash payment
- Plus additional interest payments drawn from the $125 million fund, until that fund is exhausted
This structure is intended to reward both those who have already left the account and those who continue with it.
Recommendation:
Why do government shutdowns only seem to happen in the US and not other countries
What must you do by october 2 to claim your share?
Here is what you should do now:
- Find your notice — you should have received a settlement notice with your claim ID and a four-digit PIN.
- Go to the settlement website — use your ID and PIN to log in and select or update your payment preference.
- Choose your payment method —
- Electronic payment (direct deposit) is usable even if your payout is small
- Paper checks are only issued if your payout is more than $5
- Electronic payment (direct deposit) is usable even if your payout is small
- Decide whether to close your account before October 2 if you prefer the higher one-time cash payment.
- Update your address or contact info in case the settlement administrator needs to mail you something.
If you miss October 2, default options may be applied, and you could lose access to the better payout or interest benefits.
