CD Review Bank: Discover Bank Insurance: FDIC to $250K Last updated: 2026-06-27

Discover 10-Year CD Rate (2026)

Quick take: Discover 10-Year CD pays ~3.85% APY — the same rate as its 5-year and 7-year CDs (no term premium). $2,500 minimum. A 10-year MYGA from an A-rated carrier pays ~5.30%+ tax-deferred; on $250K, the 10-year delta exceeds $50K. Few buyers should pick this product.

Hero stats · Discover 10-Year CD

APY

3.85%

Insurance

FDIC

Min Deposit

$2,500

EWP

24 months simple interest

As of

2026-06-27

Discover CD rates — full term ladder

The 10-year CD highlighted on this page is one of several terms Discover offers. Here's the full ladder so you can compare:

Term	APY
3-Year	3.95%
4-Year	3.90%
5-Year	3.85%
7-Year	3.85%
10-Year (this page)	3.85%

Rates as of 2026-06-27. Discover repricing tends to follow Fed funds moves within 1-3 weeks. Confirm current rate on the Discover site before funding.

Pros and cons

Pros

Wide term selection (3-month through 10-year)
Backed by Discover Financial — strong cardholder base / balance sheet
Branchless online structure keeps overhead low
Solid mobile + web experience
FDIC-insured with clear disclosures

Cons

$2,500 minimum is higher than most online peers (Marcus/Ally/Synchrony = $0-500)
18-month interest early withdrawal penalty on terms ≥4 years — one of the heaviest in the market
5-Year APY (3.85%) is below online-bank peers
10-year CD pays the same rate as 5-year — no term premium
Slow new-account funding vs. Ally/Marcus

How the Discover 10-Year CD compares to peers

At the 10-year term, here's how this CD stacks up against the most-shopped competitors:

Bank	10-Year APY
Discover 10yr	3.85%
Vio Bank 10yr	3.75%
Apple Bank 10yr	3.50%

For a broader view of top 10-year rates across 30+ banks and credit unions, see Best 5-Year CD Rates 2026.

When a MYGA beats this CD

A Multi-Year Guaranteed Annuity (MYGA) is the insurance-industry equivalent of a CD: lock a fixed rate for a fixed term, principal-protected. Right now at the 10-year term, A-rated carriers are paying ~5.30% — versus Discover's 3.85%.

Math at $250,000 over 5 years (using simple annual compounding):

Discover 10-Year CD @ 3.85%: $301,976 ending balance
10-year MYGA @ 5.30%: $323,655 ending balance
Difference: $21,679 in favor of the MYGA

MYGAs also defer tax on interest until withdrawal — CDs are taxed annually as ordinary income whether you touch the interest or not. The trade-off: MYGAs have a fixed surrender schedule (usually with 10%/yr free withdrawal); CDs have shorter penalty periods. For taxable retirement money you don't plan to touch, the MYGA almost always wins. See CD vs MYGA Comparison for the full breakdown.

Lock in now or wait?

Short answer: lock in at least a portion now. The 2026 rate curve is inverted at the long end — short-term CDs pay more than long-term ones, which historically signals the Fed is near a cutting cycle. If you wait for "better" rates, you risk reinvesting at lower rates 6-12 months from now.

Practical move: ladder. Put 1/3 in a 1-year CD or MYGA, 1/3 in a 3-year, and 1/3 in a 5-year. You capture today's still-elevated rates on the long end while keeping liquidity rolling.

FAQ — Discover 10-Year CD

What is the current Discover 10-Year CD rate?

As of 2026-06-27, the Discover Bank 10-Year CD pays approximately 3.85% APY. Rates change frequently — confirm on the Discover website before opening.

Is the Discover 10-Year CD FDIC-insured?

Yes. Discover Bank is FDIC-insured up to $250,000 per depositor, per ownership category. Couples with joint accounts get $500,000 of coverage.

What is the minimum deposit for the Discover 10-Year CD?

$2,500. If you have more to deposit, FDIC coverage caps at $250,000 per depositor per bank — split large balances across multiple institutions if needed.

What is the early withdrawal penalty?

24 months simple interest. Withdraw before maturity and the penalty is deducted from your interest (or principal if interest isn't enough). Plan your maturity date carefully.

Can I add money to my Discover CD after opening?

No — like most traditional CDs, this is a single-deposit account. To add funds, you must open a new CD at the rate available at that time.

What happens at maturity?

Discover typically gives you a 10-day grace period to withdraw, change terms, or accept auto-renewal at the current posted rate. Set a calendar reminder — auto-renewal often locks you in at a worse rate.

Should I pick a CD or a MYGA at this term?

At the 10-year term, a MYGA from an A-rated insurance carrier currently pays around 5.30% — meaningfully above this CD. MYGA interest is tax-deferred (CDs are taxed annually). Trade-off: MYGAs have surrender schedules; CDs have shorter penalty periods. For taxable retirement money, the MYGA usually wins. See CD vs MYGA Comparison.

Before you lock in — get the MYGA comparison

Hans Goldstein, independent licensed insurance producer.

If you're considering the Discover 10-Year CD, you should see what a 10-year MYGA from an A-rated carrier pays at the same risk level. Often it's 50-150 basis points higher, with tax deferral.

Drop your info and you'll get a written side-by-side: this CD vs. the top 3 MYGAs at the same term, with end-of-term math at your actual deposit amount. No pitch, no follow-up calls unless you ask.

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 posted bank rates and approximate APYs as of 2026-06-27. CD rates change frequently — confirm current rates directly with Discover Bank before opening an account. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific banking or insurance product. Discover Bank is FDIC- or NCUA-insured to the limits stated; coverage is per depositor, per ownership category. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated annuity carriers; he is NOT a bank employee, broker-dealer, or registered representative, and is not paid by Discover Bank for this review. No compensation has been received from Discover Bank in connection with this content. MYGA comparisons reference rates from A-rated carriers as of the date stated; carrier rates change monthly. Always read the actual CD disclosure or annuity contract before purchasing.