Millions of Capital One customers may be eligible for a payout after a judge approved a $425 million class-action settlement against the bank.

The lawsuit alleged that Capital One failed to raise interest rates on its 360 Savings accounts in line with rates offered on its newer 360 Performance Savings accounts once the latter launched in 2019. It also claimed the bank marketed the older accounts as high-yield options while failing to clearly disclose that a higher-interest account existed.

At one point, the annual percentage yield (APY) on 360 Performance Savings accounts was 4.3%. The APY on 360 Savings accounts was 0.3%.

“Capital One assured high returns with no catches, then pulled the rug out from under their customers and hoped nobody would notice,” New York State Attorney General Letitia James said in May 2025 when announcing the lawsuit.

Capital One has denied any wrongdoing.

The settlement comes after nearly two years of litigation. A U.S. District Court judge initially rejected an agreement in November, saying it did not adequately compensate account holders. The deal was renegotiated earlier this year, and Judge David Novak of the Eastern District of Virginia issued final approval of the settlement on Monday.

Who qualifies for the Capital One settlement?

Anyone who held a Capital One 360 Savings account between Sept. 18, 2019, and June 16, 2025, is eligible for payouts, according to the settlement website.

Eligible customers were not required to file a claim to receive payment but did have to choose a payment method by March 30. Those who did not make a selection will receive a check if their payment is $5 or more.

Payments will be issued only to the primary account holder on eligible 360 Savings accounts and will vary based on the interest that would have been earned if funds had been held in a 360 Performance Savings account. The amount will depend on several factors, including how long the account was held, account balances and the number of eligible customers sharing the $425 million settlement fund.

If no appeal is filed, payments are expected to be issued on or around July 21.

More from Money:

5 Class-Action Settlements to Watch This Spring: Google, LastPass and Others May Owe You Money

We Asked 19 Companies if They Plan to Give Customers Tariff Refunds. Only 3 Replied

Will Costco Share Tariff Refunds With Shoppers? Here’s What We Know