Discover Online Savings (September 2026): Now Capital One 360 Performance Savings at 3.10% APY
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Checked against discover.com and capitalone.com on September 24, 2026 · Updated
Discover's savings account is now a Capital One account. Discover Bank merged into Capital One on May 18, 2025, and discover.com's savings page now redirects to Capital One 360 Performance Savings, which pays 3.10% APY on all balances (variable, effective September 24, 2026). Existing Discover customers keep using the Discover website and app until Capital One contacts them.
Savings account vs MYGA, after tax
What $100,000 earns in 5 years: savings account vs MYGA, after tax
Rates used: Savings account 4.00%, the top online savings rate we tracked (bank sites, September 24, 2026); savings rates can change any day; 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).
| Savings account, interest taxed every year | $116,604 |
|---|---|
| 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 savings account, after tax | $9,531 |
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 savings at a glance
| Item | Detail |
|---|---|
| Account new savers get | Capital One 360 Performance Savings |
| APY | 3.10% on all balances (variable) |
| Bank | Capital One, National Association (Discover Bank merged in May 18, 2025) |
| FDIC certificate | #4297 (Discover Bank's former #5649 is inactive) |
| FDIC coverage | $250,000 per depositor, per ownership category, combined across Discover and Capital One balances |
| Existing Discover accounts | Keep managing on the Discover website and app; Discover will reach out about updates |
What changed for Discover savers
- New money goes to Capital One. The Discover savings page redirects to 360 Performance Savings; there is no separate Discover rate for new accounts.
- The rate is 3.10% APY. Variable, the same on every balance, and subject to change before or after opening.
- One FDIC limit. If you hold both Discover and Capital One deposits, they are at one bank now and share one $250,000 limit per ownership category.
- Existing accounts: Discover says to keep using its website and app and that it will contact customers when accounts change.
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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Where the rate stands (September 24, 2026)
| Option | Rate | Rate type |
|---|---|---|
| Capital One 360 Performance Savings (former Discover savings) | 3.10% APY | Variable |
| Capital One 360 11-month CD | 4.30% APY | Fixed for 11 months |
| Best nationally available 5-year CDs | 4.35%-4.50% APY | Fixed for 5 years |
| 5-year U.S. Treasury (par yield) | 5.03% | Fixed if held to maturity |
| A-rated-or-better 5-year MYGAs | ~5.80%-6.00% | Fixed for 5 years, tax-deferred |
Savings is the right place for an emergency fund and money you may need within a year. The problem is longer money: a variable 3.10% can be cut at any time, and the interest is taxed every year.
Discover savings vs. a 5-year MYGA for money you will not touch
| $250,000 for 5 years | Savings at 3.10% (held flat) | 5-yr MYGA at 5.80% |
|---|---|---|
| Rate | 3.10% APY, variable | 5.80%, fixed for the term |
| Tax on interest | Every year (1099-INT) | Deferred until withdrawn |
| Value after 5 years, after 24% federal tax | ~$280,900 | ~$311,900 (tax paid at the end) |
| Protection | FDIC, $250K per ownership category | Insurer claims-paying ability + state guaranty association (limits vary by state) |
| Access | Any time | Surrender charge above the free-withdrawal amount; IRS 10% penalty before 59½ |
About $31,000 more after tax on the MYGA, assuming the savings rate never drops (24% federal bracket, state tax ignored). Keep the emergency fund in savings; compare a MYGA for the rest. Fixed annuity benchmark: carriers rated A or better topped out around 5.80% to 6.00% on 5-year compound-interest MYGAs, per AnnuityRateWatch data, September 24, 2026. Rates vary by state, premium and carrier.
Related: Discover CD rates (now Capital One) · Capital One 360 savings review · best HYSA rates
Discover savings: FAQ
What is the Discover savings account rate today?
Discover's online savings page now redirects to Capital One 360 Performance Savings, which pays 3.10% APY on all balances, effective September 24, 2026. The rate is variable and can change at any time.
Is Discover Bank part of Capital One?
Yes. Discover Bank merged into Capital One, National Association on May 18, 2025 (FDIC records: Discover Bank, cert 5649, merged into Capital One, N.A., cert 4297). discover.com now says "Discover is part of Capital One."
What happens to my existing Discover savings account?
Discover tells existing customers to keep managing their accounts on the Discover website and app, and says it will reach out when there are updates to an account or when action is needed.
Is Discover savings still FDIC insured?
Yes. Deposits are insured by the FDIC through Capital One, N.A. (cert 4297) up to $250,000 per depositor, per ownership category. Discover and Capital One balances at the same bank count toward one limit per ownership category.
Can I still open a new Discover savings account?
New savings shoppers on discover.com are sent to Capital One 360 Performance Savings. There is no separate Discover-branded savings rate for new money.
Is a MYGA better than a high-yield savings account?
For emergency money, no; savings stays liquid. For money you will not touch for 3-5+ years, a MYGA usually pays more: roughly 5.80%-6.00% from A-rated-or-better insurers on 5-year MYGAs versus 3.10% variable on 360 Performance Savings (September 24, 2026), and MYGA interest is tax-deferred.
My take
There is no separate Discover savings rate anymore: new Discover savers get Capital One 360 Performance Savings at 3.10% APY, variable. That is fine for cash you may need; for 3-to-5-year money, a fixed rate from a CD, Treasury or MYGA pays more today.
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.
Savings sitting at Discover for 3+ years? See what a MYGA pays
Talk to Hans Goldstein, a licensed independent insurance producer.
360 Performance Savings pays 3.10% APY, variable and taxed every year. A-rated 5-year MYGAs were paying about 5.80%-6.00% on September 24, 2026, fixed and tax-deferred.
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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. HYSA APYs are variable and change frequently. Confirm current values directly with the bank before opening an account. FDIC insurance covers up to $250,000 per depositor, per insured bank, per ownership category. MYGA rates referenced are illustrative top-of-market quotes as of 2026 and depend on state, carrier appointment, and product approval; not all MYGAs are available in every state. 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 carriers across the annuity market; Hans is not a banking representative and does not earn compensation on HYSA or CD products. Tax discussion reflects federal law as of 2026 and is subject to change. State tax treatment varies. Always read the actual bank disclosure and consult a licensed advisor or CPA before reallocating retirement-bound funds.