Discover Bank CD Rates (October 2026): Discover CDs Are Now Capital One 360 CDs
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 October 3, 2026 · Last reviewed
Short answer
Discover no longer opens new CDs under its own name: on October 3, 2026, discover.com’s CD page redirects to Capital One 360 CDs. Those pay 4.30% APY on the 11-month special, 4.00% on the 1-year, 3.50% on the 4-year and 3.60% on the 5-year, with no minimum deposit. Discover’s old 7 and 10-year terms are not offered.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
Discover / Capital One 360 CD rates today
| Term | APY | Interest on $5,000 (Capital One's calculator) |
|---|---|---|
| 6 months | 3.30% | $82 |
| 9 months | 3.75% | $140 |
| 11 months (special) | 4.30% | $197 |
| 12 months | 4.00% | $200 |
| 18 months | 3.60% | $272 |
| 24 months | 3.50% | $356 |
| 30 months | 3.50% | $449 |
| 36 months | 3.50% | $544 |
| 48 months (4-year) | 3.50% | $738 |
| 60 months (5-year) | 3.60% | $967 |
What is Discover’s 1-year CD rate now?
4.00% APY, on the Capital One 360 12-month CD that discover.com now points to (October 3, 2026). On $10,000 that is about $400 over the year. The 11-month special pays more, 4.30% (about $393 over its 11 months), so unless you need exactly 12 months, the 11-month is the better buy on this rate sheet. For comparison, the best nationally available 1-year CDs paid 4.35% to 4.50% (DepositAccounts, September 25, 2026); see Marcus CD rates and Synchrony CD rates.
Does Discover still offer IRA CDs?
Not as new Discover-branded accounts; the CD page redirects to Capital One. Capital One’s online CD rate sheet that we read on October 3, 2026 lists regular 360 CDs only. If you hold a Discover IRA CD, read the notice Discover or Capital One mails you before it matures, and see our Discover IRA CD page for the options.
What changed for Discover CD customers
- New money: the Discover CD page redirects to Capital One 360 CDs. There is no separate Discover rate sheet.
- Existing CDs: Discover says it is one company under Capital One, N.A. and will contact customers by email or letter when accounts change. Capital One's disclosures say CDs moved from Discover on or after January 18, 2026 keep the disclosures provided at the move until they renew.
- Capital One's lineup runs 6 to 60 months. If you liked Discover's 7- or 10-year CD, there is no like-for-like replacement at the same bank.
- There is no minimum balance to open or maintain a 360 CD.
- At maturity you get a 10-day grace period before Capital One's early withdrawal penalty applies.
- Discover and Capital One deposits are now at the same bank, so they share one $250,000 FDIC limit per ownership category.
Rates expire like milk.
The best MYGA, CD and savings rates change every few weeks. Get a short email when a rate on this page changes.
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From my desk: Hans Goldstein, licensed insurance producer (NPN 20602398)
I still get calls from people with a "Discover CD" maturing. The renewal now happens on Capital One’s rate sheet, and the longest term is 60 months. If your old CD was a 7 or 10-year, there is no matching term, so the renewal is a real decision, not a formality.
My first check is the shape of the curve: on October 3, 2026 the 11-month (4.30%) paid more than every term from 18 to 60 months (3.50% to 3.60%). Locking four years at 3.50% only makes sense if you need FDIC coverage and expect rates to fall well below that.
Example ($250,000, 5 years, 24% federal bracket, state tax ignored): the 60-month CD at 3.60% ends near $286,100 after tax is paid each year; a 5-year MYGA at 5.50% ends near $308,300 after tax is paid at the end, about $22,200 more. A MYGA rate is guaranteed by the issuing insurer and backed by its claims-paying ability, not the FDIC, and has surrender charges. See CD vs MYGA.
Is the 4-year CD worth it at 3.50%?
The curve is inverted: the 11-month special (4.30%) and 12-month (4.00%) pay more than every term from 18 to 60 months. Locking four years at 3.50% only makes sense if you expect rates to fall well below that and need FDIC insurance on the money. For money you can leave for 4 or 5 years and that does not need FDIC coverage, a fixed annuity pays materially more today.
Former Discover CD vs. a MYGA: the 5-year math
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. On October 3, 2026 the 60-month Capital One CD paid 3.60% APY; A-rated-or-better insurers paid roughly 5.50% to 6.05% on 5-year MYGAs (public carrier rate sheets, October 14, 2026).
| $250,000 for 5 years | 60-month CD at 3.60% | 5-yr MYGA at 5.50% |
|---|---|---|
| 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) |
| Early exit | 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). The 4-year CD at 3.50% trails by a similar margin per year. If your 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 compound-interest MYGAs, per public carrier rate sheets published October 14, 2026. Rates vary by state, premium and carrier.
Related: Capital One 360 CD review · Capital One 5-year CD rate · best 5-year CD rates · Discover IRA CDs
Discover CD rates: FAQ
What is the Discover Bank 4-year CD rate?
Discover no longer opens new CDs under its own name. Discover.com's CD page now redirects to Capital One 360 CDs, where the 48-month (4-year) CD pays 3.50% APY as of October 3, 2026, with no minimum deposit.
Does Discover Bank still offer CDs?
Not as new Discover-branded CDs. Discover merged into Capital One on May 18, 2025, and new CD shoppers are sent to Capital One 360 CDs. Existing Discover CDs are being moved to Capital One; if yours was moved on or after January 18, 2026 and has not renewed, Capital One says the disclosures you received at the move still apply.
What happened to Discover's 7-year and 10-year CDs?
Capital One's 360 CD lineup runs from 6 to 60 months, so there is no 7- or 10-year option for new money. The longest term is the 60-month CD at 3.60% APY (October 3, 2026).
What is the best Capital One 360 CD rate right now?
The 11-month special at 4.30% APY, followed by the 12-month at 4.00%, as of October 3, 2026. Terms from 18 to 48 months pay 3.50% to 3.60%.
Are Capital One (former Discover) CDs FDIC insured?
Yes. Capital One, N.A. is an FDIC member; deposits are insured up to $250,000 per depositor, per ownership category. Discover and Capital One deposits now sit in the same bank, so combined balances count toward one limit per ownership category.
Is a 4-year CD or a MYGA better for retirement money?
For money you can leave for 4 or 5 years, a multi-year guaranteed annuity usually pays more: 3.50% to 3.60% on Capital One's 48- and 60-month CDs versus roughly 5.50% to 6.05% from A-rated-or-better insurers on 5-year MYGAs (October 14, 2026), with tax deferral. The CD wins on FDIC insurance and a smaller early-exit cost.
My take
You can't buy a Discover CD anymore. You can buy a Capital One 360 CD, and its 4-year term pays 3.50% APY. The short end (11-month at 4.30%) is the best value on that rate sheet. For anything you would lock four or five years, 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 capitalone.com as of the date shown; confirm before opening. MYGA figures are illustrations, not quotes.
Discover CD maturing into Capital One's rates? Compare a MYGA first
Talk to Hans Goldstein, a licensed independent insurance producer.
Capital One's 48-month CD pays 3.50% APY and the 60-month 3.60%, taxed every year. A-rated 5-year MYGAs were paying about 5.50% to 6.05% on October 14, 2026, tax-deferred.
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Holding this money for 3 years or more? This month's best MYGA rates may pay more than a bank CD, and if you already have an annuity quote, request a free, independent second opinion before you sign.
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. CD rates change frequently, typically weekly. Always confirm current values against the bank's published disclosure before opening an account. MYGA rates change monthly; always confirm against the carrier's most recent rate sheet and contract before purchasing. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated annuity carriers and is not a bank, is not affiliated with Discover Bank, and does not sell CDs. No compensation has been received from any bank or carrier in connection with the publication of this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity. CDs and MYGAs are long-term contracts with early-withdrawal penalties; they are not suitable for funds you may need before maturity. FDIC coverage limits and state insurance guaranty association limits are subject to change.