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Best CD Rates for an IRA

Best CD Rates for an IRA

We all aim for a secure and profitable way to save for retirement. An IRA CD is a great option. It guarantees a return on your investment. Plus, you get to enjoy the tax perks of an IRA.

Looking for the top IRA CD rates? Bankrate is your go-to source for the best rates. They keep a current list of rates that can boost your retirement fund. Remember, these numbers change often and were last checked on April 11.

Key Takeaways:

  • IRA CDs offer a safe and well-paying way to save for retirement.
  • Keep an eye on Bankrate for updated IRA CD rates.
  • An IRA CD can give your retirement savings a powerful boost with its guaranteed returns.
  • You can enjoy tax benefits with an IRA CD.
  • Always stay up to date with the latest rate changes to make smart investment choices.

Bankrate’s Picks for the Top IRA CD Rates

Finding the best IRA CD rates isn’t easy, but Bankrate has your back. We have selected several banks with great rates for your retirement. They were chosen for their safe IRA options and potential to grow your savings big.

Check out our top IRA CD rate picks:

  1. America First Credit Union
  2. Suncoast Credit Union
  3. Delta Community Credit Union
  4. Navy Federal Credit Union
  5. Randolph-Brooks Federal Credit Union
  6. Synchrony Bank
  7. Discover Bank
  8. Citibank
  9. Ally Bank

These banks ask for different minimum deposits and offer various APYs for IRAs. They give you lots of choices. So, you can pick what meets your financial needs and dreams best.

Bankrate’s top IRA CD rates info helps you make a smart choice. It guides you toward high-yield, safe investments for retirement.

Want to know more about IRA CDs? Keep reading to find out what they are and why they’re good for your financial future.

What is an IRA CD?

An IRA CD is a special kind of certificate of deposit. It’s kept within an individual retirement account (IRA). You put money into the CD for a fixed set term. This term can be from three months to 10 years. You can set up IRA CDs as a traditional IRA or a Roth IRA. They each offer different tax benefits. Traditional IRAs let you deduct your contributions from your taxes. But you pay tax when you withdraw the money. On the other hand, Roth IRAs use after-tax funds. This means you won’t be taxed when you take the money out.

Putting your money into an IRA CD can be a wise move. It helps you make the most of your retirement fund. With a CD, your investment is safe and its growth is certain. Your choice between a traditional IRA CD or a Roth IRA CD should match your financial aims and tax needs.

Pros and Cons of IRA CDs

Investing in IRA CDs has good and bad sides. Before you choose them for your retirement, think about their advantages and disadvantages.

Pros of IRA CDs

  • Guaranteed Returns: IRA CDs are very safe with set returns. They are great for people who want their money to grow slowly and safely.
  • FDIC or NCUA Insurance: Banks protected by the FDIC or NCUA keep your money safe with insurance. This means your investment is protected up to $250,000.
  • Protection from Fees: If you don’t take out money early, IRA CDs don’t have extra costs. You can save for retirement without worrying about losing money to fees.

Cons of IRA CDs

  • Limited Access to Funds: Once you put money in an IRA CD, you can’t touch it for a while. Taking it out before it’s time can lead to penalties. This could be a problem if you need the money sooner.
  • Potentially Lower Returns: While IRA CDs are safe, they might not make as much money as stock market investments. For those willing to take more risks, other options could offer better growth.
  • Contribution Limits: The IRS has a rule on how much you can put in an IRA CD. For 2021, the limit is $6,000 ($7,000 for people over 50). If you want to invest more, you’ll have to look into different retirement savings plans.

Thinking through IRA CDs’ good and bad points is important. It helps you see if they fit with what you want and how much risk you’re comfortable with. Always talk to a financial advisor before making any investment choices. They can help make sure IRA CDs work well with your retirement plan.

Pros and Cons of IRA CDs

Research Methodology

We at Bankrate are serious about our research approach for IRA CD rates. We have a diligent team that ensures the data we share is both exact and current.

We check and confirm the rates with the banks regularly. This way, we update our IRA CD rates every two weeks. Remember, rates might differ depending on where you are.

The rates we offer come from banks protected by the FDIC or NCUA. So, you know your money is safe, with protection up to $250,000.

Bankrate’s Validation Process:

  • Thoroughly reviewing and verifying the rates offered by banks
  • Updating the rates biweekly to reflect market changes
  • Sourcing rates from FDIC or NCUA insured banks

Bankrate is all about being right and clear. We want you to have trusty IRA CD rates for smart choices in your retirement funds. Be in the know and grow your savings with Bankrate.


If you’re looking to diversify your portfolio, have a low risk tolerance, or want guaranteed interest, you might find IRA CDs useful. These accounts help grow your retirement savings with little risk. Here are answers to common questions about them:

  • What are IRA CDs? IRA CDs, or Individual Retirement Account certificates of deposit, work like time deposits inside an IRA. They have fixed rates for a certain time, which is usually between three months and 10 years.
  • Are IRA CDs insured? Yes, IRA CDs are often insured by the FDIC for banks or the NCUA for credit unions. This means your investment is safe up to $250,000 per bank or credit union.
  • Who should consider investing in IRA CDs? IRA CDs are great for those nearing retirement or seeking a low-risk, fixed-rate investment. They ensure a known return, especially if kept to the end of the term.
  • How do IRA CDs help diversify my portfolio? Adding IRA CDs to your investments mixes in a stable, low-risk option. This can balance your portfolio and lower overall risk.
  • What is risk tolerance? Risk tolerance is how comfortable you are with your investment’s value changing. If you prefer stability, IRA CDs are a good option due to their fixed rates.

Image: IRA CD Investment

IRA CD Investment

Remember, IRA CDs are just one way to save for your retirement. It’s wise to look at your financial goals and how much risk you can take. Talking to a financial advisor can help you decide what’s best for you.

IRA CDs vs. Traditional CDs

Thinking about IRA CDs and traditional CDs? Look at your time horizon first. This affects any penalties if you withdraw early.

IRA CDs: These are certificates of deposits in an individual retirement account (IRA). They’re great for saving on taxes and boosting your retirement funds. But, taking money out early means facing penalties, so think about how long you can commit.

Traditional CDs: Traditional CDs sit outside IRAs, so you won’t get the tax breaks. You might still face penalties for early withdrawal. Plus, if you’re not 59 ½ yet, more penalties and taxes could apply.

Differences show up in how they handle taxes too. You can deduct money going into traditional IRAs from your taxes. But for Roth IRA CDs, you can’t deduct contributions.


  • IRA CDs and traditional CDs differ in tax benefits and penalties for early withdrawal.
  • IRA CDs can save on taxes but may penalize you for pulling money out early.
  • Tradition CDs don’t offer tax benefits like IRA CDs. Yet, they can still penalize you for early withdrawal.
  • Money tucked in traditional IRAs may lower your tax bill. But, you can’t skip taxes when pulling from Roth IRA CDs.

When picking between IRA CDs and traditional CDs, think about these points. Choose what fits your financial and retirement plans best.

IRA CDs vs. IRA Savings Accounts

It’s important to look at different ways to save for your retirement. IRA CDs and IRA savings accounts are both good choices. Knowing what makes them different will help you choose wisely.

IRA CDs: Secure and High-Yield

IRA CDs, or Individual Retirement Account CDs, have higher APYs than regular savings accounts. They also need a minimum deposit and you can’t touch the money for a while. This makes them great for funds you won’t need right away. With IRA CDs, you know exactly what you’ll get when they mature.

If you’re thinking long-term, IRA CDs are a solid choice. They help grow your savings while keeping your initial investment safe. This is especially good if you’re not too comfortable with risky investments.

IRA Savings Accounts: Flexibility for Withdrawals

IRA savings accounts offer more wiggle room, especially if you’re over 59 ½. They might not earn as much as IRA CDs, but you can take out money without penalty when needed.

This type of account is great for folks who need regular cash or think they’ll need their savings soon. Essentially, it lets you keep a safety net without tying up your money.

Choosing the Right Option

The best pick depends on what you want to achieve, how much time you have, and how much risk you’re comfortable with. If growing your savings over time is key, and you can wait to access your funds, an IRA CD is likely a good fit. But if you prefer the idea of being able to get to your money, maybe look at an IRA savings account.

It’s also smart to spread your investments out. You might find that using both CDs and savings accounts works best for you. Getting advice from a financial expert can also point you in the right direction based on your personal situation.


IRA CDs can boost your retirement nest egg. They offer surefire returns and tax perks. This makes them great for folks aiming to up their retirement game. But, keep in mind they might not grow as fast as some riskier options.

Are IRA CDs right for you? This depends on your willingness to take risks, how soon you plan to retire, and your money goals. If you lean towards safety and want to keep your sleep, go for an IRA CD. But, if a little risk doesn’t scare you and you dream of bigger growth, explore other paths.

Getting advice from a financial expert is wise. They’ll look at your personal situation and help you chart the best course. This way, you can mix and match your retirement savings just right. It’s all about reaching your financial dreams and securing a comfortable future.


What are the advantages of investing in an IRA CD?

Investing in an IRA CD means assured returns. It also comes with FDIC or NCUA insurance. Plus, it protects from most fees, unless withdrawing early.

What are the disadvantages of investing in an IRA CD?

The downsides include restricted access to your money. You might get lower returns than riskier options. Also, there are limits on how much you can put in.

How often are the IRA CD rates updated?

Bankrate updates the IRA CD rates they offer every two weeks. This is to make sure the information is current and accurate.

Are the listed banks insured?

Yes, the banks listed with IRA CD rates are protected. They have FDIC or NCUA insurance.

What is the difference between a traditional IRA CD and a Roth IRA CD?

For a traditional IRA CD, contributions are tax-deductible but withdrawals are taxed. A Roth IRA CD uses after-tax money. Withdrawals are tax-free.

Are IRA CDs suitable for short-term or long-term investments?

IRA CDs are best for the long term. Their terms range from three months to 10 years. So, they lock your money in for a set period.

What is the difference between an IRA CD and an IRA savings account?

IRA CDs give better interest rates. But, they need a set term and a minimum amount to deposit. This is for saving money you don’t need right away. IRA savings accounts are more flexible, especially for people older than 59 ½.

Are IRA CDs a good option for retirement savings?

Yes, they are good for retirement. They offer safe returns and tax breaks. But, they might not grow as much as riskier investments over time.

What factors should I consider before investing in an IRA CD?

Think about how risky you’re willing to be, how long you can invest, and your goals. This will help you decide if an IRA CD fits your needs.

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