On May 17, 2025, Reuters reported Capital One had agreed to pay $425 million to settle a nationwide lawsuit that accused the bank of misleading savings account depositors. The lawsuit claimed that Capital One failed to inform customers about the option to transfer their funds to higher-yielding accounts, which would have provided them with much better interest rates.
Capital One has settled allegations from 360 Savings account holders who claimed the bank misled them by advertising high interest rates on their accounts while offering better rates to new customers through its 360 Performance Savings accounts. Depositors noted that their rates were locked at 0.3%, while the Performance accounts offered rates that reached up to 4.35%. Under the settlement, Capital One will pay $300 million to reimburse the lost interest for 360 Savings depositors, along with an additional $125 million for those who still maintain their accounts.
Despite agreeing to the settlement, Capital One has not admitted any wrongdoing. The bank is also facing a lawsuit from New York Attorney General Letitia James regarding similar claims, while the CFPB’s similar lawsuit was dropped in February as the White House ended most of the agency's enforcement activity.
Read the Reuter’s report here.