Current APY (1Y / 5Y)
4.50% / 4.05%
Capital One 360 IRA CD Review (2026)
TL;DR: Capital One 360 IRA CDs run 6 months to 5 years at ~4.05-4.50% APY across Traditional, Roth, and SEP wrappers. FDIC-insured, $0 minimum, branch access available in some markets (rare for online-first IRA CDs). For 5-year IRA money, A-rated IRA MYGAs typically pay ~150 bps more inside the same tax wrapper. Capital One's edge is the combination of digital convenience plus branch access.
Insurance
FDIC $250K
Minimum deposit
$0 minimum
Early withdrawal penalty
3-6 months interest
IRA wrappers offered
Traditional, Roth, SEP
Capital One 360 IRA CD at a glance
Capital One 360 (FDIC #4297) is the online-banking division of Capital One, N.A. Unlike pure-online banks (Ally, Marcus, Synchrony), Capital One also has a national branch and ATM footprint — useful if you want to walk into a branch for IRA paperwork, rollover support, or beneficiary updates. The IRA CD wrapper is administered by Capital One in-house with no annual fee.
Capital One 360 IRA CDs are available in Traditional, Roth, and SEP. Funding can come from new contributions (up to IRS limits), 401(k) rollovers, or IRA-to-IRA transfers. The branch network can help with the rare cases where a 401(k) provider requires a notarized signature on the rollover paperwork.
Capital One 360 IRA CD rates by term (mid-2026)
| Term | APY | EWP |
|---|---|---|
| 6 month | ~3.80% | 3 months interest |
| 9 month | ~4.00% | 3 months interest |
| 12 month | ~4.50% | 3 months interest |
| 18 month | ~4.40% | 6 months interest |
| 2 year | ~4.30% | 6 months interest |
| 3 year | ~4.20% | 6 months interest |
| 4 year | ~4.10% | 6 months interest |
| 5 year | ~4.05% | 6 months interest |
How IRA CD taxation actually works
This is the single most misunderstood point. An IRA CD is taxed like any other IRA asset, not like a taxable bank CD.
- Inside a Traditional IRA: Interest credited each year is not reported on your 1040. You do not get a 1099-INT for IRA CD interest. The CD compounds tax-deferred. You only owe tax when you withdraw — and withdrawals are taxed as ordinary income.
- Inside a Roth IRA: Interest is never taxed, provided your withdrawal is qualified (you are age 59½ or older and the Roth has been open at least 5 years).
- What you owe each year: Nothing. Zero. The annual 1099-INT that taxable CD holders receive does not apply to IRA CDs.
- What triggers tax: The withdrawal (Traditional) or a non-qualified Roth distribution. The CD's interest crediting cycle is irrelevant for tax purposes.
If you are under age 59½ and withdraw, two penalties can stack: the bank's early withdrawal penalty (typically 90–365 days of interest) and the IRS 10% additional tax on the withdrawn amount. The bank's penalty is enforced by the bank; the IRS penalty is enforced via Form 5329 on your tax return.
Capital One branch access — when it matters
For most IRA CD buyers, the digital-only experience of an Ally or Marcus is fine. But there are specific cases where branch access materially helps:
- 401(k) rollovers from older plans that require a Medallion Signature Guarantee on the distribution paperwork (some plan providers still require this for distributions over a threshold).
- Inherited IRA CD setup where the bank needs to see death certificates and beneficiary identification in person.
- Disability or older clients who prefer to do retirement paperwork face-to-face.
- Cashier's check deposits from real estate or business-sale proceeds heading into an IRA contribution.
For these cases, Capital One's branch network is worth a small rate concession. For pure online buyers, you may get a marginally better rate at a digital-only competitor.
When a MYGA beats an IRA CD
An IRA MYGA (multi-year guaranteed annuity) is, in plain English, a CD-equivalent issued by an insurance carrier instead of a bank. Inside an IRA wrapper, both are tax-deferred — the tax wrapper is identical. The difference is the rate, the insurance backing, and the surrender mechanics.
| Feature | IRA CD (bank) | IRA MYGA (insurance) |
|---|---|---|
| Typical 5 years rate (mid-2026) | ~4.05% | ~5.60% |
| Tax treatment inside IRA | Deferred | Deferred (identical) |
| Insurance / guaranty | FDIC $250K per depositor per bank | State guaranty fund, typically $250K–$300K per owner per carrier; backed by carrier balance sheet |
| Early access | Pay 90–365 days interest, get principal back | 10% free withdrawal annually most carriers; surrender charge on excess |
| Rate lock-in length | 3 months to 5 years typical | 3 to 10 years; 5-year is most common |
Worked example — $100,000 for 5 years:
- IRA CD at 4.05%: $121,958 at maturity
- IRA MYGA at 5.60%: $131,317 at maturity
- MYGA advantage: ~$9,359 over the 5-year period on the same starting balance
The rate gap exists because MYGA carriers hold longer-duration corporate bonds than banks hold; banks fund CDs primarily with short Treasuries. Inside an IRA — where you cannot use the principal for spending anyway until 59½ without penalty — locking up for the full term costs you nothing extra. The MYGA is structurally a better fit for IRA money the same way it is for taxable money, with one added consideration: the tax-deferred wrapper is "redundant" inside an IRA, but that does not make the MYGA worse — it just means you are paying for an insurance product purely on rate, not on tax shelter. And on rate, it usually wins.
See IRA CD vs MYGA decision guide and current best MYGA rates.
What happens at age 73 with RMDs?
Under SECURE Act 2.0, Required Minimum Distributions (RMDs) begin at age 73 for Traditional IRA holders (and SEP/SIMPLE IRA holders). Roth IRAs have no RMD during the original owner's lifetime. For an IRA CD, the practical issue is liquidity: if your full IRA balance is locked in a single 5-year CD, you may need to break the CD to take your RMD. Two solutions:
- Ladder. Hold multiple smaller CDs maturing in different years; pull RMD from the maturing rung. See IRA CD ladder strategy.
- RMD-friendly product. Most IRA MYGAs allow penalty-free withdrawal of the RMD amount each year — ask the carrier in writing before signing.
The honest verdict on Capital One 360 IRA CDs
Capital One 360 is a solid mid-market IRA CD with the rare combination of digital convenience and branch backup. Rates are not the absolute top of the market but are competitive. The 5-year IRA CD at ~4.05% trails comparable IRA MYGAs by enough that the rate gap dominates the branch-access benefit for most buyers. For 1-2 year IRA cash equivalents where you want branch access, Capital One is a reasonable pick. For 5-year buy-and-hold IRA money, the MYGA option wins on math.
Related guides
- IRA CD vs MYGA — which is better for retirement
- IRA CD ladder strategy
- How to rollover a 401(k) into an IRA CD
- Using IRA CDs to cover RMDs
- Inherited IRA CD rules (SECURE Act 10-year)
- Best MYGA rates — 2026
Second opinion before you commit IRA money
Independent licensed producer. Hans Goldstein.
IRA money is retirement money — one bad rollover or product pick costs you years. Before you lock a 5-year IRA CD or sign a MYGA application, get a written side-by-side comparison from a licensed independent producer who is not paid by the bank or the carrier you are considering.
Drop your info — within 24 hours you'll get a written rate comparison (IRA CDs vs IRA MYGAs at your term), the IRS rollover rules that apply to your situation, and a no-pressure 15-minute call if you want one.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This review reflects publicly available product materials and approximate rates as of the date stated above. CD rates, IRA account fees, MYGA crediting rates, and IRS rules cited (RMD age 73 under SECURE 2.0, 10% early withdrawal penalty before 59½, Roth 5-year qualified distribution rule, post-2019 SECURE Act 10-year rule for non-spouse inherited IRA beneficiaries) are current as of the publication date and subject to change. Always confirm current rates with the issuer and current tax law with a CPA before opening, rolling over, or withdrawing from any IRA. This article is general information for educational purposes; it is not a personalized recommendation, tax opinion, legal opinion, or offer of any specific product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated annuity carriers; he does not sell bank CDs and is not affiliated with any bank, credit union, or brokerage discussed in any review on this site. No compensation has been received from any bank, credit union, or brokerage in connection with this review. MYGAs are insurance products with surrender charges; bank CDs are FDIC-insured deposit products; credit union CDs are NCUA-insured share certificates. These are different product categories with different protections and trade-offs.