Attorney General Ellison applauds new Capital One settlement

Settlement more than doubles in value after AG Ellison and bipartisan coalition urged better deal for consumers

January 16, 2026 (SAINT PAUL) — Minnesota Attorney General Keith Ellison today commended a new settlement that will require Capital One to provide $425 million in restitution and better interest rates for its 360 Savings customers who for years were cheated out of higher interest payments on their savings accounts. After Attorney General Ellison joined a bipartisan coalition of attorneys general in opposing an earlier proposed class action settlement that did not deliver enough for Capital One customers who were wronged, this new settlement more than doubles the value of the earlier one.

“It’s tough enough to afford your life as it is. It’s outrageous that a financial institution would cheat you out of money it promised you and making affording your life even harder than it is,” Attorney General Ellison said. “I objected to an earlier class settlement that was unfair to Minnesota consumers who were falsely promised high-yield savings accounts by Capital One. I’m glad that the court rejected that settlement based on that objection and that this new deal ensures consumers receive the higher interest rates they were originally promised.”

“I previously objected to a class settlement that was unfair to Minnesota consumers who were falsely promised high-yield savings accounts by Capital One,” said Attorney General Ellison. “I’m glad that the court rejected that settlement based on the objection and that this new deal ensures that consumers receive the higher interest rates they were originally promised.”

Capital One marketed its 360 Savings accounts as “high interest” accounts with “one of the nation’s best savings rates” that would earn its customers more than an average savings account. However, while interest rates rose nationwide beginning in 2022, Capital One kept the interest rates for its 360 Savings accounts artificially low. Instead, Capital One created “360 Performance Savings,” a nearly identical type of savings account that provided much higher interest rates than 360 Savings — at one point, more than 14 times higher.

In September 2025, Attorney General Ellison joined a bipartisan coalition of attorneys general in an amicus brief opposing a proposed class action settlement that would have shortchanged 360 Savings customers. The proposed settlement would have delivered less than $300 million in restitution payments while allowing Capital One to continue to underpay 360 Savings customers’ interest. After Attorney General Ellison and the coalition raised objections to this settlement, the court rejected it.

Capital One has now agreed to a new settlement that would deliver substantially more for 360 Savings customers. The settlement, which was preliminarily approved by the court today, will require Capital One to pay $425 million in restitution. The settlement will also require Capital One to match 360 Savings and 360 Performance Savings interest rates, erasing the misleading two-tiered system of accounts and providing an estimated $530 million to consumers nationwide in future additional interest.