Lifestyle

Capital One Just Lost a $425 Million Lawsuit — Check If You’re Owed Money

By Erica Coleman · April 25, 2026

Capital One hid a better savings account from millions of its own customers — and a federal judge just signed off on a $425 million settlement to make them pay for it.

Judge David J. Novak of the U.S. District Court for the Eastern District of Virginia gave final approval to the settlement on April 20, clearing the way for payments to reach eligible account holders as early as July 21, 2026. No claim form is required. If you qualify, the money comes to you automatically.

The lawsuit centered on a practice plaintiffs’ attorneys described as a bait-and-switch. In 2019, Capital One quietly introduced a new savings product called the 360 Performance Savings account, which paid significantly higher interest rates than the company’s existing 360 Savings accounts. The problem: Capital One didn’t tell its existing 360 Savings customers that the new account existed, that it paid more, or that their account was no longer the company’s best savings option.

The result was that millions of loyal Capital One customers sat in lower-yield accounts, earning a fraction of what they could have earned, while the bank collected the difference.

“Capital One assured high returns with no catches, then pulled the rug out from under their customers and hoped nobody would notice,” New York Attorney General Letitia James said when the lawsuit was first announced.

Capital One has not admitted wrongdoing.

The settlement now approved is the second attempt to resolve the case. Judge Novak rejected an earlier deal in November 2025, saying it would have compensated account holders for less than 10% of the interest they had actually lost. Capital One went back to the table and returned with the current $425 million figure — more than double the original offer — which the judge accepted.

Who qualifies:

Anyone who held a Capital One 360 Savings account at any point between September 18, 2019, and June 16, 2025, is automatically included in the settlement class. That includes people who have since closed those accounts. Joint account holders are included, but payments will only go to the primary account holder on record.

How much will you get:

There is no fixed payout amount. Your share of the settlement is calculated based on how much additional interest you would have earned if your 360 Savings account had paid the same rate as the 360 Performance Savings account during the same period. The larger your balance and the longer you held it during the class period, the larger your payment.

Out of the total $425 million, $300 million goes directly to customers. The remainder covers legal fees and administrative costs, with any leftover funds also distributed to the class.

To illustrate the math: if you held $10,000 in a 360 Savings account for one year while it paid 0.30% APY — and the 360 Performance Savings account was paying 3.30% APY during the same period — you earned $30 in interest when you could have earned $330. The settlement is designed to close that gap.

When and how you’ll be paid:

Payments are scheduled to go out on or around July 21, 2026, assuming no appeals are filed during the 30-day appeal window that follows final approval. If you opted into electronic payment before the March 30 deadline, the money will be deposited directly. If you did not opt in, a check will be mailed to your address on file with Capital One.

One exception: if your calculated payout is less than $5 and you did not opt into electronic payment, you will not receive anything.

What to do right now:

Nothing — if you’re eligible, you’re already in. If you want to verify your status or check the latest payment timeline, the official settlement website is CapitalOne360SavingsAccountLitigation.com, and the settlement administrator can be reached at 1-888-832-2704.