Capital One customers covered by a $425 mn settlement over interest rates on its 360 Savings accounts are still waiting for payments as of Oct. 3, 2026. A federal judge granted final approval to the revised settlement on April 20, but an appeal filed in June has prevented the agreement from taking effect.
The litigation concerns Capital One’s decision to introduce its 360 Performance Savings account in September 2019 while keeping existing 360 Savings accounts open.
Customers alleged Capital One failed to tell older accountholders that the new product paid substantially higher interest and stopped treating 360 Savings as its main high-yield online savings product. Capital One denies wrongdoing.
The difference became substantial as U.S. interest rates increased. Between April and September 2024, 360 Performance Savings paid 4.35% APY while 360 Savings remained at 0.30%. By June 2025, the rates were 3.60% and 0.50%, respectively.
The revised settlement covers people and entities that maintained a 360 Savings account at any point from Sept. 18, 2019, through June 16, 2025. Joint and co-holders are included in the settlement class, although cash payments are issued only to the primary accountholder listed on each account.
The $425 mn fund will cover payments to class members as well as court-approved legal fees, expenses, administration costs and service awards.
Individual payouts are based on the approximate additional interest each eligible account would have earned if it had received the 360 Performance Savings rate during the class period. The resulting claims are then paid pro rata from the net settlement fund.
Customers do not need to submit a claim. The deadline to choose electronic payment, opt out or object was March 30, 2026. Eligible payments of $5 or more will eventually be sent by check to the address held by the settlement administrator if an electronic payment method wasn’t selected. Payments below $5 are available only through electronic payment.
Capital One settlement payments delayed by appeal
Judge David Novak of the U.S. District Court for the Eastern District of Virginia entered final approval of the settlement on April 20. The agreement still hasn’t reached its Effective Date because class member Michelle Coles appealed the approval order on June 18.
The appeal is pending before the U.S. Court of Appeals for the Fourth Circuit as case No. 26-1807. The court granted Coles an extension giving her until Nov. 13, 2026, to file the opening brief and appendix. The response brief is currently due Dec. 14.
That means an earlier expectation that settlement payments would be distributed in 2026 no longer applies. The official settlement administrator says no Class Cash Payments are being processed and it cannot estimate when distributions will begin. Payments require the appeal to be resolved and the settlement to become effective.
The appeal seeks to overturn the settlement approval and return the dispute to litigation. Class counsel has said the challenge could substantially delay payments, potentially for more than a year.
Capital One has already raised 360 Savings rate
One part of the settlement has moved forward despite the appeal. Capital One increased the interest rate on legacy 360 Savings accounts on Aug. 4 to match the rate paid on 360 Performance Savings accounts. The bank made the change before its formal obligations under the settlement took effect.
As of Oct. 3, 2026, Capital One lists its 360 Performance Savings rate at 3.10% APY for all balances. Because Capital One is currently matching the two products, existing 360 Savings accounts also receive that rate.
The revised agreement requires Capital One to keep the rates on 360 Savings and 360 Performance Savings identical after the settlement becomes effective. It also requires the bank to maintain and service both account types for at least two years following the Effective Date.
The rate-matching provision was added after Novak rejected an earlier $425 mn agreement in November 2025. He found the previous terms left current 360 Savings customers exposed to continuing losses from the lower interest rate.
Capital One and the plaintiffs then negotiated the revised settlement, which kept the $425 mn cash fund and added rate parity for existing accounts.
For eligible customers, the current position is straightforward: the settlement has final district court approval, the interest-rate gap has already been eliminated, but the $425 mn cash distribution remains frozen while the appeal proceeds. No new payment date has been set.
