A judge has approved a $425 million settlement in a lawsuit alleging that Capital One paid lower interest rates on older savings accounts while offering higher rates on a similar product.

The settlement 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. 

The case, in which Capital One denies any wrongdoing, involves two types of savings accounts offered by the financial services giant. 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 the bank didn't clearly inform 360 Savings customers about the newer, higher-rate account or that their account was no longer the best option.

Am I eligible for a payment?

The settlement is available to Capital One customers who held a 360 Savings account between Sept. 18, 2019, and June 16, 2025, as well as joint and co-holders of those accounts, according to the settlement website.

Do I need to file a claim to receive payment?

The settlement website says that eligible Capital One customers don't need to file a claim to receive a cash payment. 

However, customers could choose to receive their payment electronically instead of by check, although they had to make that decision before March 30.

People who didn't opt for electronic payment and whose settlement amount exceeds $5 will receive a check in the mail, according to the settlement website. If the amount is less than $5, only those who chose electronic payment will receive the money.

How much will I get?

Each account holder's payout will be based on how much 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.

After that, the settlement money will be divided among all eligible customers. The total 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.

When will the settlement payments be sent?

With the judge approving the settlement on April 20 and barring any legal appeals, payments are expected to be sent on or about July 21, according to the settlement website.