For years, millions of Capital One customers earned a fraction of a percent on their 360 Savings accounts while the bank marketed a nearly identical product, 360 Performance Savings, with an annual percentage yield north of 4%. The difference could amount to hundreds of dollars a year on a modest balance, and according to the Consumer Financial Protection Bureau, Capital One never clearly told legacy savers the better option existed. In January 2024, the CFPB sued the bank, alleging the practice cost depositors more than $2 billion in foregone interest. A $425 million settlement has since been reached. As of May 2026, the broad terms are public, but the distribution plan that will determine who gets paid, and how much, has not been finalized.
What the CFPB accused Capital One of doing
The CFPB’s enforcement action names both Capital One National Association and Capital One Financial Corporation. At the center of the case are two savings products that looked almost interchangeable to consumers: the legacy 360 Savings account and the newer 360 Performance Savings account.
According to the CFPB’s complaint, Capital One launched 360 Performance Savings with a competitive yield but never migrated existing 360 Savings customers into the higher-paying product or made its existence obvious to them. When the Federal Reserve began raising benchmark rates in early 2022, the gap between the two accounts widened sharply. By mid-2023, 360 Performance Savings was advertising an APY above 4.25%, while many 360 Savings holders were still earning roughly 0.30%, according to rate data cited in the CFPB’s filings and contemporaneous reporting.
The agency calculated that the aggregate shortfall exceeded $2 billion, a figure derived from the difference between what depositors actually earned and what they would have earned had they been in the higher-yield account. The $425 million settlement was independently confirmed by the Associated Press.
Capital One has denied the allegations. The bank maintained that its disclosures were adequate and its practices lawful, according to AP reporting. That posture is common in federal enforcement: companies frequently resolve cases by paying a settlement without admitting fault, preserving their legal position against any related private lawsuits.
Who is likely to qualify
The CFPB’s complaint focuses on customers who held 360 Savings accounts during the period when that product’s rate lagged well behind the 360 Performance Savings yield. Based on the enforcement filings, the relevant window appears to begin around early 2022, when the Fed launched its aggressive rate-hiking cycle, and extends through the period covered by the complaint.
Beyond that broad outline, several eligibility questions remain open in publicly available documents as of May 2026:
- Minimum balance thresholds: It is unclear whether customers needed to maintain a certain balance to qualify for a payout.
- Customers who switched on their own: Savers who discovered 360 Performance Savings independently and moved their money may be treated differently from those who never switched.
- Closed accounts: Whether former Capital One customers who shut their 360 Savings accounts before the settlement can still receive a payment has not been specified.
A finalized distribution plan, which would answer these questions, has not yet appeared on the CFPB’s public case page. Until it does, qualification criteria should be treated as preliminary.
How much individual payouts might be
The $425 million figure is significant, but it has to stretch across what the CFPB described as millions of affected customers. When a settlement fund of that size is divided among a population that large, individual payments tend to be modest. In past banking settlements involving interest shortfalls or fee overcharges, per-person recoveries have generally ranged from a few dollars to a few hundred dollars, depending on account balances and the length of time the customer was affected.
No official document currently available specifies the payout formula, minimum or maximum individual amounts, or the payment method (direct deposit, mailed check, or account credit). Those details will be defined in the final distribution plan, which typically requires court approval before any funds are disbursed.
It is also worth noting that $425 million covers only a fraction of the more than $2 billion in alleged harm. The gap between those numbers reflects the reality of a negotiated resolution, not dollar-for-dollar restitution.
What affected customers should do now
A formal claims process has not yet been announced, but there are concrete steps savers can take to be ready:
- Check your account history. Log into Capital One’s website or app and look for any record of a 360 Savings account. Note the dates it was open and the interest rates you received. Downloading or screenshotting past statements now is a smart precaution in case the interface changes later.
- Keep your contact information current. Capital One will likely be required to notify eligible customers directly once a distribution plan is approved. If you have closed your account, make sure the bank still has a valid mailing address or email on file.
- Monitor the CFPB’s case page. The enforcement docket is the most reliable source for updates on filings, court orders, and distribution timelines.
- Ignore unsolicited “claim filing” offers. Until an official process goes live, any email, text, or phone call offering to file your claim for a fee is a red flag. Legitimate settlement claims processes do not require upfront payment.
Why the timeline is still up in the air
Large federal settlements involving consumer financial products rarely move fast. After a distribution plan is filed, it typically goes through a public comment period and requires judicial sign-off. Identity verification, administrative processing, and payment logistics add more time. In comparable cases, the gap between a settlement announcement and the first consumer payments has stretched from several months to well over a year.
Political uncertainty adds another variable. The Supreme Court upheld the CFPB’s funding structure in its 2024 CFPB v. Community Financial Services Association decision, but the agency has continued to face political pressure and shifting priorities under different administrations. Any disruption to the CFPB’s operational capacity could slow the pace at which the distribution plan is finalized.
Where things stand for Capital One savers
The 360 Performance Savings account remains available to new and existing Capital One customers, though its specific APY fluctuates with market conditions. Separately, Capital One’s acquisition of Discover Financial Services, which received regulatory approval and closed in 2025, is a distinct corporate matter unrelated to the CFPB’s savings-account enforcement action.
For the millions of depositors caught between a $2 billion allegation and a $425 million settlement, the wait continues. The core facts are established: the CFPB says Capital One ran a two-tier savings system that quietly shortchanged legacy customers, the bank denies it, and a substantial but partial settlement has been reached. What remains is the part that matters most to individual savers: the specific terms that will determine whether a check shows up, and for how much.
