Judge Approves $425M Capital One Savings Settlement

A federal judge has approved a $425 million class-action settlement against Capital One Financial Corp., resolving allegations that the bank failed to notify millions of savings account holders about higher-interest options, potentially costing them billions in lost earnings. The ruling, issued this week, clears the way for automatic cash payments to eligible customers who held 360 Savings accounts between September 18, 2019, and June 16, 2025.

The lawsuit, filed in federal court, accused Capital One of maintaining lower interest rates on existing 360 Savings accounts while introducing the 360 Performance Savings product in September 2019 with significantly higher yields. As market rates climbed, the new accounts offered up to 4.35 percent interest, compared to as low as 0.30 percent on the older ones. Plaintiffs claimed the bank did not adequately inform customers of the change or encourage them to switch, creating a two-tier system that shortchanged savers. Capital One has denied any wrongdoing but agreed to the settlement to resolve the multidistrict litigation, which drew scrutiny from several state attorneys general.

Eligibility covers anyone who opened or maintained a 360...