Capital One has settled a lawsuit that claimed the company deceived customers by creating two savings accounts with very similar names, but with different interest rates, making owners of the lower-paying accounts eligible for cash payments as part of a $425 million settlement.

Months after the court rejected an initial settlement agreement in the case in 2025, a U.S. District Court judge issued final approval of a new settlement on Monday, April 20, USA TODAY reported.

Michigan Attorney General Dana Nessel joined a bipartisan coalition of 17 other attorneys general in 2025 who said the original proposal cheated customers, who lost more than $2 billion in unpaid interest.

Capital One denied the claims in the lawsuit and any allegations of wrongdoing. Both sides ultimately agreed to a settlement to avoid going to trial, USA TODAY reported.

Payments are expected to be sent around July 21, according to the settlement website.

What to know:

What is the Capital One settlement about?

The class action lawsuit against Capital One relates to two types of savings accounts the company has offered: 360 Savings and 360 Performance Savings.

The plaintiffs alleged that the two types of savings accounts are identical, except for the interest rate Capital One paid on them.

According to the filings, Capital One offered the 360 Savings accounts from 2013 to 2019, which is when it began offering 360 Performance Savings.

Though the company stopped offering 360 Savings accounts to customers, Capital One continued to service the existing accounts under the program, the filings said.

The lawsuit alleged that since 2019, Capital One has paid a higher interest rate on 360 Performance Savings than it paid on 360 Savings, despite the two accounts being otherwise identical.

Capital One marketed its 360 Savings accounts as “high interest” accounts with “one of the nation’s best savings rates” that would earn its customers more than an average savings account, Nessel said in a 2025 release. However, while interest rates rose nationwide beginning in 2022, Capital One kept the interest rates for its 360 Savings accounts artificially low. Instead, Capital One created “360 Performance Savings,” a nearly identical type of savings account that provided much higher interest rates than 360 Savings.

In September 2019, the initial New York lawsuit said, “the 360 Performance Savings interest rate was 1.90%, while the 360 Savings rate was 1.0%. This disparity grew even wider over time. Capital One lowered the 360 Savings rate to 0.30% in December 2020, and kept it frozen there during a period of rising interest rates nationwide. At one point, the 360 Performance Savings rate was 4.35%, more than 14 times higher than the 360 Savings rate.”

As a result, the plaintiffs alleged that Capital One deceptively marketed the 360 Savings account and concealed interest rate disparities. The company denied the claims.

Who’s eligible for payment in the Capital One settlement?

The settlement class, or the group eligible for payment, includes anyone who maintained a Capital One 360 Savings account at any point between Sept. 18, 2019, and June 16, 2025.

How much money can you get from Capital One settlement?

Each member of the settlement class will receive an individualized payment.

The total will first be calculated based on the amount of interest the account holder would have earned if the account were receiving the same interest rate as a 360 Performance Savings account.

The remaining settlement fund after deducting those costs and expenses will then be split among recipients based on their individual amounts, according to the settlement website.

Do you have to file a claim in the Capital One settlement?

No, you don’t need to file a claim to receive a payment in the Capital One settlement. All eligible members will receive their payment automatically.

Payments are expected to be sent around July 21, according to the settlement website.