A federal judge has approved a $425 million class action settlement with Capital One over allegations that the bank paid low interest rates to older 360 Savings account holders while offering a nearly identical product (360 Performance Savings) at substantially higher rates.

U.S. District Judge David J. Novak signed the final approval order on April 20, 2026 (PDF File), clearing the way for payments to go out to millions of eligible customers. Capital One denies any wrongdoing.

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The Big Picture: The case covers anyone who held a Capital One 360 Savings account anytime between September 18, 2019, and June 16, 2025, including joint and co-holders. Class members don’t need to file a claim. Payments are going out automatically based on account records.

Capital One launched 360 Performance Savings in 2019 with rates that eventually climbed well above what existing 360 Savings customers earned. The lawsuit argued that the bank never clearly told its existing savers that a higher-yielding alternative was available under a similar name.

The CFPB previously alleged the same conduct cost consumers more than $2 billion in lost interest, with the 360 Savings rate frozen at 0.30% from late 2019 into mid-2024 even as market rates surged.

How Much Will You Get? Your payout is based on how much additional interest you would have earned if your 360 Savings balance had been paid at the 360 Performance Savings rate during the class period. The $425 million fund is reduced first by legal fees and administrative costs, then divided among eligible account holders.

When Are Payments Going Out? Assuming no appeal delays the process, payments are expected on or about July 21, 2026, according to the settlement website. The court also ordered that any objector who appeals must post a $25,000 bond — a move that makes appeals costlier and reduces the risk of a prolonged delay.

Here’s how you’ll get paid:

• Customers who chose electronic payment by the March 30 deadline will receive the money that way.
• Customers who didn’t opt for electronic payment and are owed more than $5 will get a check in the mail.
• Amounts under $5 will only be paid out to those who chose electronic payment.

If any money is left in the fund after class payments are complete, the court ordered that residual funds go to Feed More, Inc., a Richmond, Virginia food bank.

How This Connects: The approval closes out one of the largest consumer banking settlements in recent years. 

For savers, the takeaway is the same one The College Investor has flagged repeatedly in our coverage of high-yield savings accounts: banks routinely launch new savings products at higher rates while leaving legacy account holders behind. 

Check the rate on your savings account against current online savings benchmarks and if it’s significantly below what the same bank is advertising to new customers, that’s a signal to move your money.

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