Judge approves $425 million Capital One settlement. Here’s what customers should know.

A recent settlement in a lawsuit against Capital One has been approved by a judge, with the financial services giant agreeing to pay $425 million. The lawsuit alleged that Capital One paid lower interest rates on older savings accounts while offering higher rates on a similar product. This settlement will result in payments being sent to eligible Capital One customers who held a 360 Savings account between September 18, 2019, and June 16, 2025.

The lawsuit centers around two types of savings accounts offered by Capital One. In 2019, the company introduced a new savings account called 360 Performance Savings, which offered higher interest rates than its older 360 Savings accounts. The lawsuit claims that Capital One failed to adequately inform customers with older accounts about the newer, higher-rate option, potentially causing them to miss out on better returns.

To be eligible for a payment from the settlement, customers must have held a 360 Savings account during the specified time period. Joint and co-holders of these accounts are also eligible to receive compensation. Customers do not need to file a claim to receive a cash payment, as payments will be distributed automatically.

Customers had the option to choose between receiving their payment electronically or by check, with those who did not select electronic payment receiving a check in the mail for amounts exceeding $5. If the settlement amount is less than $5, only customers who chose electronic payment will receive the money.

The settlement payout for each account holder will be based on the additional interest they would have earned if their 360 Savings account had paid the higher rate offered by the 360 Performance Savings account. After covering costs such as legal fees and administrative expenses, the remaining amount will be divided among eligible customers.

Assuming there are no legal appeals, payments from the settlement are expected to be sent around July 21. This marks a significant step towards resolving the lawsuit and compensating affected Capital One customers for any potential losses they may have incurred.

This article was edited by Alain Sherter for accuracy and clarity.