Capital One Bank recently reached a settlement agreement with the court, agreeing to compensate a total of $425 million in interest losses to account holders under its “360 Savings account” project. New York state account holders will receive $34 million in compensation. Readers are advised to pay attention to their mail notifications after April.
According to the Office of the New York State Attorney General (AG) on January 12, Capital One agreed to pay $425 million in compensation to customers of its “360 Savings account” and pledged to increase the interest due to the account holders.
“Capital One Bank’s customers originally expected their savings accounts to appreciate, but their bank misled them, deceiving them of their valuable interest over the years,” said AG in a statement. “Today, we have advocated for justice for customers across the nation and ensured that they can receive the higher interest rates initially promised by the bank. I look forward to the approval of this settlement agreement and will continue to ensure that New Yorkers are treated fairly by the banks.”
The AG’s office indicated that Capital One Bank marketed its “360 Savings account” as a “high-interest” account that would yield returns higher than regular savings accounts. However, despite a nationwide increase in interest rates since 2022, Capital One artificially lowered the interest rates on the “360 Savings account” and introduced the high-interest “360 Performance Savings account,” at one point offering rates 14 times higher than the former.
A coalition of state attorneys general representing account holders filed a lawsuit against Capital One, being dissatisfied with the prior settlement of less than $300 million. In May of this year, the coalition submitted a friend-of-the-court brief, leading to the recent $425 million compensation agreement.
Of the total amount, $300 million will be used to compensate account holders for missed interest, while $125 million will be allocated for interest rates in line with the “360 Performance Savings account” for at least the next 2 years.
Affected account holders include those who held a Capital One “360 Savings account” between September 18, 2019, and June 16, 2025. Compensation will be made through direct deposit or by check delivery; readers should pay attention to relevant mail information.
The final approval hearing is scheduled for April 20 this year, with subsequent procedures to follow.
This newspaper has reached out to Capital One for comment on this matter but has not received a response before publication.