A federal judge has approved a massive $425 million settlement involving Capital One after the bank was accused of misleading customers about interest rates on certain savings accounts.

The lawsuit claimed that Capital One failed to properly increase interest rates on its 360 Savings accounts while simultaneously offering a newer product, the 360 Performance Savings account, which had significantly higher rates. According to the case, customers were not clearly informed that the older account was no longer considered a high-yield option or that better alternatives were available.

As part of the settlement, Capital One has agreed to pay $425 million to resolve the claims. The agreement covers customers who held a 360 Savings account at any point between September 18, 2019, and June 16, 2025. This includes individual account holders as well as joint or co-account holders.

People who qualify for the settlement do not need to take any action to receive payment. Eligible customers will automatically be included unless they previously chose to opt out of the settlement.

The amount each person receives will vary. Payments are based on factors such as how long the account was open, how much money was kept in the account, and how much additional interest could have been earned if the funds had been placed in the higher-yield 360 Performance Savings account.

There are still some unknowns tied to the settlement. Officials have not said exactly how many people are included or how much each individual payment will be, since the total will be divided among all qualifying customers and adjusted based on each person’s account history.

Customers did have the option to choose how they wanted to receive their payment, including electronic deposits instead of paper checks. However, the deadline to select electronic payment has already passed. In addition, checks will not be issued for amounts under $5, meaning those with very small payouts needed to opt into electronic payment earlier to receive their money.

If there are no delays or appeals, payments are expected to be sent out around July 21, 2026.

Overall, the settlement aims to compensate customers who may have missed out on higher earnings due to differences in how Capital One structured and communicated its savings account options.

Source: Fox10 Phoenix