Federal Judge Approves $425 Million Settlement Resolving Capital One Savings Account Dispute

A federal judge in Virginia approved a $425 million settlement between Capital One and customers who accused the bank of steering them away from higher-interest savings accounts, the New York Post reported. U.S. Eastern District of Virginia finalized the agreement on Monday, resolving a lawsuit that has been in court for nearly two years.

Novak had rejected an initial settlement in November for not fairly compensating account holders and for failing to provide restitution for lost interest or clarify switching options to current holders. Capital One created two savings accounts, named 360 Savings and 360 Performance Savings, which paid vastly different interest rates without clear disclosure to customers, according to the New York Post.

The lawsuit alleged that Capital One failed to adequately disclose options for switching to higher-interest accounts.

9% interest rate, while the original 360 Savings account had a 1% yield. 35%. Customers who held a Capital One 360 Savings account between September 18, 2019, and June 16, 2025, are eligible for settlement payments.

Payment amounts vary based on account holding duration, account balance, and the number of class members. Eligible current and former Capital One customers will receive payments within the next one or two months without needing to take any action. Approximately three-fourths of eligible customers continue to hold the original 360 Savings accounts.