Discover 5-Year CD Rate (September 2026): Now the Capital One 60-Month CD at 3.60%
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Rates checked against capitalone.com and discover.com on September 24, 2026 · Updated
There is no new Discover 5-year CD. Discover merged into Capital One on May 18, 2025, and discover.com's CD page now redirects to Capital One 360 CDs. The equivalent product, the Capital One 360 60-month CD, pays 3.60% APY with no minimum, as of September 24, 2026. Discover's old 5-year CD (3.85% APY in June 2026, $2,500 minimum) is no longer offered.
Capital One 360 CD rates (where Discover CD shoppers now land)
| Term | APY |
|---|---|
| 6 months | 3.30% |
| 9 months | 3.75% |
| 11 months (special) | 4.30% |
| 12 months | 4.00% |
| 18 months | 3.60% |
| 24 months | 3.50% |
| 30 months | 3.50% |
| 36 months | 3.50% |
| 48 months | 3.50% |
| 60 months (5-year) | 3.60% |
What changed versus the old Discover 5-year CD
- Rate: 3.60% APY on the 60-month Capital One CD, versus 3.85% on Discover's 5-year in June 2026.
- Minimum: $0, versus Discover's $2,500.
- Early withdrawal penalty: 6 months of interest, versus 18 months at Discover. No partial withdrawals.
- FDIC: one bank now. Discover and Capital One deposits share one $250,000 limit per ownership category at Capital One, N.A. (FDIC cert 4297).
- The curve is inverted: Capital One pays 4.30% on the 11-month special and 4.00% on 12 months, more than any term from 18 to 60 months.
How 3.60% compares on a 5-year term
| 5-year option | Rate | As of |
|---|---|---|
| Capital One 360 60-month CD | 3.60% APY | Sept 24, 2026 |
| Navy Federal 5-year certificate ($1K / $100K+) | 3.85% / 3.90% APY | Sept 24, 2026 |
| Best nationally available 5-year CDs | 4.35%-4.50% APY | Sept 24, 2026 |
| A-rated-or-better 5-year MYGAs | ~5.50%-6.05% | October 14, 2026 |
Former Discover 5-year CD vs. a 5-year MYGA
A multi-year guaranteed annuity (MYGA) locks one rate for the whole term, like a CD, but it is issued by an insurance company and the interest is tax-deferred.
| $250,000 for 5 years | Capital One 60-month CD | 5-yr MYGA at 5.50% |
|---|---|---|
| Rate | 3.60% APY | 5.50% (fixed for the term) |
| Tax on interest | Every year (1099-INT) | Deferred until withdrawn |
| Value after 5 years, after 24% federal tax | ~$286,100 | ~$308,300 (tax paid at the end) |
| Protection | FDIC, $250K per ownership category | Insurer claims-paying ability + state guaranty association (limits vary by state) |
| Getting out early | Interest penalty | Surrender charge above the free-withdrawal amount; IRS 10% penalty before 59½ |
About $22,200 more after tax on the MYGA (24% federal bracket, state tax ignored). If a Discover CD is maturing into Capital One's rate sheet, that renewal is the moment to compare. Fixed annuity benchmark: carriers rated A or better topped out around 5.50% to 6.05% on 5-year compound-interest MYGAs, per public carrier rate sheets, October 14, 2026. Rates vary by state, premium and carrier.
Related: Discover CD rates (now Capital One) · Capital One 360 CD review · best 5-year CD rates
Discover 5-year CD: FAQ
What is the Discover 5-year CD rate?
Discover no longer opens new CDs. Its CD page redirects to Capital One 360 CDs, where the 60-month (5-year) CD pays 3.60% APY with no minimum deposit, as of September 24, 2026.
Why did Discover stop offering CDs?
Discover Bank merged into Capital One, N.A. on May 18, 2025 (FDIC records show Discover Bank, cert 5649, merged into Capital One, N.A., cert 4297). New CD shoppers are now sent to Capital One 360 CDs.
What is the Capital One 5-year CD early withdrawal penalty?
Capital One charges 6 months of interest on CDs longer than 12 months, and does not allow partial withdrawals. That is lighter than the 18 months of interest Discover charged on its 5-year CD.
Is a 5-year CD at 3.60% a good rate?
It is below the market. The best nationally available 5-year CDs paid about 4.35%-4.50% APY on September 24, 2026 (DepositAccounts), and Capital One's own 11-month special paid 4.30%.
Does a 5-year MYGA pay more than a 5-year CD?
Usually. On October 14, 2026 A-rated-or-better insurers paid roughly 5.50%-6.05% on 5-year MYGAs, and MYGA interest is tax-deferred. On $250,000 over 5 years (24% federal bracket) a 5.50% MYGA nets about $22,200 more after tax than a 3.60% CD. The CD wins on FDIC insurance and a smaller early-exit cost.
My take
The Discover 5-year CD is gone; the replacement at the same bank pays 3.60% APY. That is below the best 5-year CDs in the market and well below what A-rated insurers pay on 5-year MYGAs. Keep the CD for money that must stay FDIC-insured; for five-year money that does not, get a MYGA quote first.
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) and is not affiliated with Discover or Capital One. Rates are copied from the sources named, as of the date shown; confirm the current rate before opening. MYGA figures are illustrations, not quotes.
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.