A judge on April 20 approved a $425 million settlement in a lawsuit alleging that Capital One paid lower interest rates on older 360 Savings accounts while offering higher rates on a similar newer product. The approval opens the way for payments to be sent to eligible Capital One customers who held a 360 Savings account at any time between Sept. 18, 2019, and June 16, 2025.

In 2019, Capital One rolled out a savings account called 360 Performance Savings, which offered higher interest rates than its older 360 Savings accounts. The lawsuit alleges that the bank did not clearly inform 360 Savings customers about the newer, higher-rate account or that their account was no longer the best option. Capital One denies any wrongdoing in the lawsuit. A judge had previously rejected an earlier version of the settlement for not providing sufficient relief to customers.

The settlement is available to customers who held a 360 Savings account during the covered period, including joint and co-holders of those accounts, according to the settlement website. Eligible customers do not need to file a claim to receive a cash payment. Customers could choose to receive their payment electronically instead of by check if they made that decision before March 30.

Customers who did not opt for electronic payment and whose settlement amount exceeds $5 will receive a check in the mail. If a customer's settlement amount is less than $5, only those who chose electronic payment will receive the money.

Each account holder's payout will be based on the extra interest they would have earned if their 360 Savings account had paid the higher rate offered by the 360 Performance Savings account during the same period. The total settlement amount will first be reduced to cover costs such as legal fees and administrative expenses, and whatever remains will be shared among the eligible account holders. Payment amounts will vary based on factors such as account balances and how long the accounts were held.

Barring any legal appeals, payments are expected to be sent on or about July 21, according to the settlement website. Most eligible customers are expected to receive payments automatically, though the distribution timeline could extend into mid-2026 depending on any potential appeals. The settlement also requires Capital One to make changes to how it manages and communicates interest rates on its savings products going forward.