NEW YORK (WPIX) — Capital One has consented to a $425 million settlement to address allegations that it did not increase interest rates for 360 Savings accounts.

The settlement includes customers who maintained a Capital One 360 Savings account between Sept. 18, 2019, and June 16, 2025.

Here’s what to know.

What is the class action settlement about?

Earlier in the year, the Consumer Financial Protection Bureau filed a lawsuit against Capital One regarding its savings accounts. The lawsuit accused the company of maintaining a low rate for several years despite national rate increases, resulting in customers being shortchanged by over $2 billion in potential interest.

Multiple lawsuits have been brought against Capital One over the 360 Savings accounts, which are now being overseen by a federal judge in Virginia.

Capital One, which has not admitted to wrongdoing, has agreed to pay a $425 million class action settlement.

Who qualifies?

Customers who held a 360 Savings account with Capital One from September 18, 2019, to June 16, 2025, may be eligible for a share of the $425 million settlement. Capital One will compile a list of eligible customers, who have also been notified via notice.

No claims need to be submitted to receive a payout. However, using the ID and four-digit PIN from your settlement notice is required to choose your payment option online. The deadline for this selection is October 2, 2025.

Settlement administrators have stated that opting for a paper check will not result in receiving one if the payout is below $5. In contrast, electronic payment selections will be processed regardless of the amount.

How much will I receive?

A portion of the $425 million settlement will be allocated to eligible account holders, matching what they would have received if their 360 Savings account had been subject to the interest rate applicable to the 360 Performance Savings account. The latter account types experienced rate increases but were allegedly not disclosed to those with 360 Savings accounts.

A portion of the settlement, $125 million, is earmarked for paying qualifying account holders “additional interest payments.” According to the settlement website, Capital One will “maintain an interest rate on the 360 Savings account of at least two times the national average rate for savings deposit accounts as calculated by the FDIC” to those who still have 360 Savings accounts. Those payments will continue until all of the $125 million has been dispersed.

Payouts will be determined based on the life of the account and how much interest you would have received if you had a 360 Performance Savings account, “multiplied by a to-be-determined value.” Payouts for those who still have an active 360 Savings account will be calculated nearly the same, except without a multiplier.

You will also receive the aforementioned “additional interest payments” if you keep your Capital One 360 Savings account open after October 2, 2025. You do not need to file a claim for these payments.

If your account has already closed or been converted to a 360 Performance Savings account — or you do either before October 2 — “you will receive a Class Cash Payment that is currently estimated to be approximately 15% larger,” the settlement site explains.

The final approval hearing for the settlement is scheduled for Nov. 6, 2025. Individual payment amounts will vary and have not yet been specified.

The Associated Press contributed to this report.