Capital One to Pay $425 Million in 360 Savings Interest-Rate Settlement — Update

By Katherine Hamilton

Capital One Finance has agreed to pay $425 million over claims it misled consumers about a high-yield savings program.

A court on Monday preliminarily approved a settlement for restitution payments, New York Attorney General Letitia James said.

The settlement comes after James sued the Mclean, Va., bank in May, claiming it misled its 360 Savings account customers about the interest rates they would receive to avoid paying them higher rates.

James alleged in her suit that Capital One kept interest rates artificially low in the 360 Savings accounts, which the bank advertised as high-interest savings programs. As interest rates rose in 2022, Capital One froze its 360 Savings rate at 0.3%, which was below the average interest rate, James said.

The New York attorney general also said Capital One created a second high-yield program called 360 Performance Savings, which was nearly identical to 360 Savings, but had a much higher rate. As part of the settlement, Capital One will have to match 360 Savings and 360 Performance Savings interest rates.

The deal would also require Capital One to offer better interest rates for customers with 360 Savings accounts, James said.

James's office plans to dismiss its lawsuit if the settlement receives final approval from the court and goes into effect.

Capital One had faced an earlier lawsuit with similar claims from the Consumer Financial Protection Bureau. The CFPB filed its suit in January 2025, but moved to drop it in February as the watchdog agency froze work, cut employees and closed its headquarters last year.

The CFPB was claiming Capital One customers lost out on $2 billion in interest payments. James' suit came about three months after the CFPB moved to drop its suit.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

January 12, 2026 14:19 ET (19:19 GMT)