Judge approves $425 million Capital One savings account settlement

A federal judge approved a $425 million settlement with Capital One on Thursday, clearing the way for payouts to customers who held the bank's 360 savings accounts between September 2019 and June 2025.

The settlement resolves a two-year lawsuit alleging that Capital One steered customers away from higher-interest versions of its 360 savings product, potentially costing depositors significant earnings over the covered period.

Capital One 360 savings account holders who maintained accounts during the September 2019 through June 2025 eligibility window are entitled to compensation under the agreement, ABC7 Los Angeles reported. Plaintiffs alleged the bank deliberately directed customers toward lower-yielding accounts rather than higher-rate options available within the same product line.

The path to Thursday's approval was not straightforward. A judge had rejected an earlier settlement in November, finding it did not fairly compensate affected customers, according to the ABC7 Los Angeles report. The two-year legal battle prompted Capital One to return to negotiations and offer a substantially revised agreement.

The revised $425 million settlement was seen as a more equitable resolution following the earlier rejection. The final approval marks the conclusion of litigation that argued the bank's account-steering practices systematically reduced depositors' interest earnings over the multi-year period.

Specific per-customer payout amounts were not detailed in ABC7 Los Angeles' reporting, as distribution totals typically depend on the number of valid claims filed and the methodology established by the settlement administrator.

Eligible customers should watch for notices from Capital One or the settlement administrator detailing how to file a claim and the applicable deadlines.