Judge Approves Capital One's Revised $425 Million Settlement
A federal judge has given preliminary approval to Capital One's revised $425 million settlement with 360 Savings account holders. This decision follows a previous rejection and includes commitments to raise interest rates and maintain account types.
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In a significant development for Capital One Financial Corporation , a federal judge has granted preliminary approval to a revised $425 million class action settlement with 360 Savings account holders. The decision, announced on January 12, 2026, by U.S. District Judge David Novak david novak, comes after an earlier version of the settlement was rejected. The revised agreement includes a commitment from Capital One to increase interest rates on 360 Savings accounts to match those offered on 360 Performance Savings accounts, which currently yield 3.3% following recent declines in benchmark short-term interest rates. This adjustment is estimated to benefit depositors by approximately $530 million.
The initial rejection of the settlement by Judge Novak approximately two months ago was based on concerns that millions of depositors would recover less than 10% of their damages. At that time, Capital One had frozen interest rates on 360 Savings accounts at 0.3%, while offering rates above 4% to new customers on similarly named accounts. The revised settlement also ensures that both account types will be maintained for at least two years, addressing a key issue identified in the original proposal.
