US2 min(s) read
Published 09:30 26 Apr 2026 GMT
Millions of current and former Capital One customers are set to receive payouts after a federal judge approved a $425 million settlement this week.
David Novak signed off on the deal on Monday, closing a case that accused the bank of steering customers away from accounts offering significantly higher interest rates.
The legal battle has stretched on for nearly two years. Back in November, Novak rejected an earlier version of the settlement, saying it didn’t do enough to fairly and rightly compensate the affected customers.
The revised agreement now requires Capital One to pay $425 million over claims it created two similarly named savings products, “360 Savings” and “360 Performance Savings”, that offered sharply different interest rates without clearly explaining the distinction.
According to court filings, that confusion meant many customers didn’t realise which account they had, costing them millions of dollars in potential interest. Anyone who held a “360 Savings” account between September 18, 2019, and June 16, 2025, qualifies for a payout.
How much each person receives will depend on factors like how long they held the account, their balance, and how many people are included in the settlement group.
Eligible customers won’t need to do anything to claim their money; payments are expected to start arriving within the next month or two.
The lawsuit states that when “360 Performance Savings” launched in 2019, it offered a 1.9% interest rate, compared to about 1% for the original “360 Savings” account. But over time, the gap widened dramatically: the older account’s rate dropped to just 0.3% APY, while the newer one climbed as high as 4.35%.
The bank was also accused of making sure customers weren’t aware they could earn more interest simply by switching accounts.
An earlier settlement proposal was unsurprisingly thrown out because it failed to provide any proper restitution for lost interest and didn’t clearly inform customers that they could move their money into higher-yield accounts.
