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The Best IRA CD Rates – April 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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Perhaps you’ve decided to build a CD ladder within your IRA, or maybe you’re looking for a safe way to store your retirement cash for a specific period of time. Whatever the reason, you’re interested in getting an IRA CD and, understandably, want to know what products will give you the best rate of return.You can get an IRA CD with terms ranging from three months to more than six years, with interest rates generally increasing with the term length. There are lots of options, so we’ve rounded up the top IRA CD rates that are available right now for a variety of terms. You’ll select your IRA CD terms based on your CD-ladder master plan or whenever you’ll need access to your money.

Every month, we choose the best IRA CD rates using data from DepositAccounts.com, a database of offerings at more than 17,100 banks and credit unions. We sorted the products by APY, then eliminated institutions with a health rating below a B. We then eliminated products that are not available nationwide. From there, we chose the IRA CD with the highest APY among products with a minimum deposit no greater than $5,000. Here are the best options.

The best IRA rates in April 2021

TermInstitutionAPYMinimum opening deposit
3 monthsBethpage Federal Credit Union0.40%$50
6 monthsCommunitywide FCU0.65%$1,000
12 months Lafayette FCU 0.80%$500
18 months Evansville Teachers FCU0.75%$1,000
2 years Lafayette FCU0.90%$500
3 yearsLafayette FCU1.01%$500
4 years Lafayette FCU1.16%$500
5 years Lafayette FCU1.26%$500
6 yearsEvansville Teachers FCU1.20%$1,000

Best 3-month IRA CD — Bethpage Federal Credit Union (Traditional, Roth)

3 Month IRA from Bethpage Federal Credit Union Bethpage Federal Credit Union offers an array of IRA CDs, including a 3-month CD with a competitive APY of 0.40%. This CD requires a $50 minimum deposit, and dividends are compounded and credited monthly.

Membership to Bethpage Federal Credit Union is open to anyone who opens a $5 savings account. The financial institution is headquartered in Bethpage, New York. Branch locations are in Long Island or New York City, but account holders can also use Bethpage FCU’s co-op nationwide network as well as its online banking services.

Best 6-month IRA CD CommunityWide Federal Credit Union (Traditional, Roth)

6 Month IRA from Communitywide Federal Credit Union
CommunityWide Federal Credit Union is offering the highest rate available on 6-month IRA CDs at 0.65% APY for deposits of $1,000 and over. It has other IRA CD products, too, with term lengths ranging from 6 to 60 months.

There are a number of ways to become a member of CommunityWide, including being a member of Michiana Goodwill Boosters, Marine Corps League of St. Joseph Valley, or Habitat for Humanity Helpers. You can also join if you are an employee, retiree or donor member of a long list of companies or a spouse or relative of a CommunityWide member.

SEE DETAILS Secured

on Communitywide Federal Credit Union’s secure website

NCUA Insured

Best 1-year IRA CD, 2-year IRA CD, 3-year IRA CD, 4-year IRA CD and 5-year IRA CD — Lafayette Federal Credit Union (Traditional, Roth, CESA)

1 Year Fixed IRA from Lafayette Federal Credit Union If it’s IRA CDs you’re after, a membership to Lafayette Federal Credit Union may be worth your while. The credit union offers a standout rate on its 1-year, 2-year, 3-year, 4-year and 5-year IRA certificates. Each certificate requires a minimum deposit of $500 to open the account and to earn the APY.

Membership extends to individuals who live or work in the Washington, D.C., or Potomac, MD., area; members of the Home Ownership Financial Literacy Council; and immediate family members of a current Lafayette Federal member. Those who live in Maryland, Virginia or D.C. and are members of the American Consumer Council (ACC) are also eligible, as are employees of certain companies.

SEE DETAILS Secured

on Lafayette Federal Credit Union’s secure website

NCUA Insured

Best 18-month IRA CD and 6-year IRA CD — Evansville Teachers Federal Credit Union (Traditional, Roth, CESSA)

6 Year IRA from Evansville Teachers Federal Credit UnionTo join this credit union, you may make a $5 donation to the Mater Dei Friends & Alumni Association. You may want to strongly consider doing so, as the 18-month, 2-year, 3-year, 4-year, and 6-year IRA CD rates offered by Evansville FCU are the best on the market in terms of APY. Plus, opening an IRA CD through Evansville Teachers FCU only requires a minimum balance of $1,000.

SEE DETAILS Secured

on Evansville Teachers Federal Credit Union’s secure website

NCUA Insured

3 questions to consider before opening an IRA CD

Opening an IRA CD generally requires filling out a form or talking to a banker. You’ll have to have a way to fund your IRA CD, whether that’s rolling over an existing retirement account into an IRA CD or depositing cash into the product. The same limits that apply to IRA contributions apply to IRA CDs: $5,500 per year ($6,500 if you’re over age 50) of your own money across all your IRA accounts each year, and you can do a rollover once per year.

Unless you’ve invested in a bump-up IRA CD, you won’t be able to take advantage of a higher rate until your CD matures. Withdrawing funds from an IRA CD before they mature will result in a stiff penalty. Bump-up IRA CDs give you a chance to increase your interest rate to a higher level if it’s available, but you’re generally only allowed to do this once or twice during the life of the CD.

You can either use the direct-transfer method or the indirect-transfer method. The direct transfer method requires setting up your new IRA account filling out a form authorizing the bank or credit union to transfer money from the old account into the new account. The indirect transfer method involves you asking for a check from your old IRA account. You have up to 60 days to deposit that check into your IRA CD to avoid incurring a penalty.

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Top Jumbo CD Rates for April 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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Conservative savers generally consider certificates of deposits (CDs) as sanctuaries where their money is kept safe and they enjoy a decent yield without stomaching the risk of investing in the stock market.

With a CD, you agree to deposit your money in a bank or credit union for a fixed amount of time (which can be as short as a few months or as long as several years) and get the satisfaction of knowing your money is likely earning a higher annual percentage yield (APY) than it would in a checking or savings account.

Jumbo CDs, which in most cases require a minimum deposit of $100,000, have traditionally promised even higher APYs for customers than regular CDs. But a combination of unsettled interest rates and fierce competition among banks — both online and traditional — for the deposits of customers have given rise to many normal CDs that offer a better return than jumbo CDs.

It’s not entirely clear why banks haven’t been similarly aggressive in offering higher-yield jumbo CDs, but one possibility is that they are interested in attracting more customers rather than big money deposits. In other words, banks would rather have the business of 100 customers each depositing $5,000 CDs than 10 customers depositing $500,000 jumbo CDs.

That said, if you feel the need to go big when it comes to your CD, check out how our top picks for jumbo CDs compare to the national average.

Regular 1-Year CD vs 1-Year Jumbo CD

Institution

Ally

Advancial

CD term

1 year

1 year

APY

0.55%

0.85%

Minimum opening deposit

$0

$25,000

SEE DETAILS Secured

on Marcus By Goldman Sachs’s secure website

Member FDIC

SEE DETAILS Secured

on Advancial’s secure website

NCUA Insured

Regular 3-Year CD vs 3-Year Jumbo CD

Institution

Ally

Advancial

CD term

3 year

3 year

APY

0.55%

1.21%

Minimum opening deposit

$0

$25,000

SEE DETAILS Secured

on Advancial’s secure website

NCUA Insured

Regular 5-Year CD vs 5-Year Jumbo CD

Institution

Ally

Advancial

CD term

5 year

5 year

APY

0.60%

1.84%

Minimum opening deposit

$0

$25,000

SEE DETAILS Secured

on Marcus By Goldman Sachs’s secure website

Member FDIC

SEE DETAILS Secured

on Advancial’s secure website

NCUA Insured

As of April 2021
All rates expressed in annual percentage yield (APY) unless otherwise stated.

The top jumbo CD rates of April 2021

To determine the best CDs for your jumbo-sized deposit, we turned to the database found on DepositAccounts.com. For each common CD term, we assumed the customer was planning to deposit $100,000 in the account so as to include traditional jumbo CDs which typically have a higher minimum deposit needed to open. All the accounts included are also available nationwide.

You’ll notice as you read through the list of CDs we’ve selected, that some of them have minimum deposits of far less than $100,000. That’s because we’re focused on informing you of the best CD accounts for your money, and there are plenty of large minimum deposit CDs that still offer a great APY. You can rest assured we aren’t leaving out any good deals just because a financial institution’s marketing team decided not to call a CD “jumbo.”

Institution

CD term

APY

Minimum opening deposit

Advancial3 month0.71%$25,000
Advancial6 month0.80%$25,000
Advancial12 month0.85%$25,000
Advancial 18 months 0.92%$25,000
Advancial 2-year 1.00%$25,000
Advancial3-year1.21%$25,000
Advancial4-year1.50%$25,000
Advancial5-year1.84%$25,000

Banks that offer the best jumbo CD rates

Advancial – 3-month CD, 0.71% APY; 6-month CD, 0.80% APY; 12-month CD, 0.85% APY; 18-month CD, 0.92% APY; 2-year CD, 1.00% APY; 3-year CD, 1.21% APY; 4-year CD, 1.50% APY; 5-year CD, 1.84% APY

3 Month Junior Jumbo Certificate from Advancial

As you can see, Advancial clearly takes the cake when it comes to offering the highest jumbo CD rates. Across all term lengths, the credit union currently has the highest rates for its junior jumbo CDs, which boast the following APYs for minimum deposits of $25,000: a 3-month CD with a 0.71% APY, a 6-month CD with a 0.80% APY, a 12-month CD with a 0.85% APY, a 18-month CD with a 0.92% APY, a 2-year CD with a 1.00% APY, a 3-year CD with a 1.21% APY, a 4-year CD with a 1.50% APY and a 5-year CD with a 1.84% APY.

Headquartered in Dallas, Advancial is a credit union that has roots dating back to 1937. While this credit union only has a handful of locations in Alaska, Texas, Oklahoma and Louisiana, membership is still open to anyone who joins Connex and pays a $5 fee.

SEE DETAILS Secured

on Advancial’s secure website

NCUA Insured

Go jumbo or stick to regular CDs?

To be considered “jumbo,” a CD needs to require a large minimum deposit, usually $100,000, as opposed to a normal CD which may not even require a minimum deposit. The deal banks made with well-off depositors boiled down to ‘if you leave lots of your money with us in this jumbo CD, we’ll give you a higher yield than if you deposited it in a normal CD.’

It’s important to note the differences between a jumbo CD and regular CD aren’t set in stone and have more to do with how the bank or credit union markets their savings products than any hard and fast rule, says Ken Tumin, founder of DepositAccounts.com, another LendingTree-owned site.

“I’ve seen banks and credit unions with jumbo CD minimums as low as $10,000 and as high as $250,000,” Tumin told MagnifyMoney. “Even if a bank doesn’t offer jumbo CDs with high minimums, someone could still deposit a large balance into a regular CD. They just wouldn’t be earning any higher interest than someone depositing a small balance.”

As the difference in earnings from a jumbo CD and traditional CD has diminished (or disappeared completely), the drawbacks of parking so much money in a CD become more apparent. For example, the jumbo CDs with the highest APY usually require a longer period of time to mature, which means you have at least $100,000 exposed to inflation—which means you possibly end up earning less than you expected.

Withdrawal penalties on jumbo CDs

According to a recent survey, the penalties for withdrawing your money from your CD early could be serious. Some banks will even take part of your principal as a penalty.

Below are the most common penalties, according to the survey:

  • 3 month CD: Three months of interest
  • 6 month CD: Three months of interest
  • 1 year CD: Six months of interest
  • 2 year CD: Six months of interest
  • 5 year CD: A year’s worth of interest

So, it’s important to be confident that you want to put your money in a CD. When you do this, you’re making an agreement with the bank to leave it there for a set period of time. If you’re unsure if you want to tie up your money for a long period of time, consider a high-yield savings account instead.

How jumbo CDs are taxed

It’s important to know that the interest you earn on your jumbo CD will be taxed as interest income, not as capital gains income.

This means that your bank or credit union will send you a 1099-INT form at the end of the year to show how much interest you earned in your jumbo CD and you will be taxed on that.

Are jumbo CDs safe?

According to the U.S. Securities and Exchange Commission: “Certificates of deposit are considered to be one of the safest savings options. A CD bought through a federally insured bank is insured up to $250,000.”

Some people prefer investing in the stock market over CDs because you can often get higher rates of returns; however, the stock market is a riskier bet, and returns are not guaranteed like those associated with CDs.

CDs are not affected by the whims of the stock market. The interest rate you agree on with your bank is the rate you will get. That interest rate, however, may not outpace inflation, meaning you may not really earn much, if anything, over time.

Final thoughts

If you have over $100,000 and want to invest it in a jumbo CD, you have several options. Like the chart above shows, you can choose many different terms and durations for your jumbo CD. Just be sure to research the bank you invest with so you know you’re putting your money with a top-rated institution. Also, be sure that you’re comfortable with putting your money in a CD long-term because there are often penalties for withdrawing your money early.

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Best Money Market Rates & Accounts — April 2021

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.

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If you’re looking to save more money beyond your regular savings account, consider adding a money market account (MMA) to the mix. A money market account can earn at a higher rate than a savings account, especially if you have a larger balance to deposit. Many MMAs tier their rates as well, rewarding higher balances with higher rates.

The current average money market rate is 0.10%, but you can do much better than that if you’re willing to break with traditional brick-and-mortar banks. With so many options out there, however, it may seem daunting to search for a new bank account. We’ve made it easier by rounding up the best money market accounts out there.

To identify the best options, we searched through over 12,000 banks and credit unions, looking for the highest interest rates, as well as considering an account’s minimum requirements and fund accessibility. Overall, we found that internet banks consistently beat the competition. You might not recognize all their names — new online banks continually crop up — but if it’s high interest rates you’re looking for, it might be worth branching out.

MagnifyMoney’s Best Money Market Accounts for April 2021

Here are our favorite accounts for April 2021:

Do you have a savings goal in mind? Tell us about it!

1. Axos Bank – 0.60% APY, $1,000 minimum balance to open

High Yield Money Market from Axos Bank Internet-only bank Axos Bank boasts a 0.60% APY on its High Yield Money Market Account, requiring a reasonable minimum deposit of $1,000 in order to open. However, there is no minimum required in order to earn the stated APY. Additionally, there is no monthly maintenance fee associated with this account.

SEE DETAILS Secured

on Axos Bank’s secure website

Member FDIC

2. National Cooperative Bank – 0.60%, $100 minimum deposit to open

Impact Money Market from National Cooperative Bank The National Cooperative Bank is currently offering a 0.60% APY on funds in its Impact Money Market account. While there is a $100 minimum deposit required to open this account, there is no required minimum balance in order to earn the APY. Interest is compounded daily and credited monthly. Note that this account charges a monthly maintenance fee of $25 if your average monthly balance dips below $5,000.

While the National Cooperative Bank has only one location in Ohio, its services are available to consumers nationwide, online.

SEE DETAILS Secured

on National Cooperative Bank’s secure website

Member FDIC

3. Prime Alliance Bank – 0.60% APY, no minimum balance to open

Personal Money Market from Prime Alliance Bank Established in 2004, Prime Alliance Bank is currently offering a Personal Money Market account with an APY of 0.60% on all balances. There aren’t any monthly fees with this account.

Prime Alliance Bank will provide an ATM card if you request one. This account can be managed online or via the bank’s mobile app.

SEE DETAILS Secured

on Prime Alliance Bank’s secure website

Member FDIC

4. All America Bank – 0.50% APY, $500 minimum balance to open

Mega Money Market Account - Online Only from All America Bank All America Bank is currently offering an APY of 0.50% on balances up to $50,000 on its Mega Money Market account. After $50,000, you’ll earn an APY of 0.25%. There aren’t any monthly fees with this account. All America Bank allows six free transactions per month, after which a $5 fee applies to each additional debit.
All America Bank was established in 1969 and is headquartered in Oklahoma City.

5. Northern Bank Direct — 0.50% APY, $5,000 minimum balance to open

Money Market from Northern Bank Direct Northern Bank Direct currently offers a 0.50% APY on its Money Market account with a minimum opening deposit of $5,000. The account has no monthly service charge. Customers can access their money market account funds through ATM, electronic transfer, wire and check writing.

Northern Bank Direct is an online division of Northern Bank, which was founded in 1960 and is headquartered in Woburn, Mass. This internet-only bank offers its products to its customers nationwide.

SEE DETAILS Secured

on Northern Bank Direct’s secure website

Member FDIC

6. Ally Bank – 0.50% APY, no minimum balance to open

Money Market Account from Ally Bank Ally Bank is a popular internet-only bank, offering a 0.50% APY on its Money Market Account. Although the interest rate on the money market account is not the highest, Ally does offer a very competitive overall package — particularly if you link the account to an Ally checking account.

By linking your money market account to your checking account, you provide overdraft protection there. The checking account has no minimum balance requirement and no monthly fee.

SEE DETAILS Secured

on Ally Bank’s secure website

Member FDIC

7. First Internet Bank – 0.50% APY, $100 minimum balance to open

Money Market Savings from First Internet Bank First Internet Bank boasts a robust rate of 0.50% APY on its Money Market Savings, earning more than seven times the national average. There is a minimum deposit of just $100 required for this account. It also has a $5 monthly service charge, which can be waived by maintaining an average daily balance of $4,000.

First Internet Bank has roots dating back to 1999, and it claims to be the first FDIC-insured institution to operate entirely online.

SEE DETAILS Secured

on First Internet Bank’s secure website

Member FDIC

8. Nationwide by Axos – 0.50%, $1,000 minimum balance to open

Money Market Plus from Nationwide by Axos Bank Nationwide by Axos is currently featuring an attractive rate of 0.50% on funds in its Money Market Plus account. You need $1,000 to open the account and to avoid the monthly maintenance fee of $8. The account includes mobile banking and mobile deposits.

Nationwide by Axos Bank was established in 2000. All banking products are provided through Axos Bank, which also provides the account’s FDIC insurance.

SEE DETAILS Secured

on Nationwide By Axos Bank’s secure website

FDIC Insured

9. Georgia Banking – 0.45% APY, $100 minimum balance to open

GBC Platinum Money Market Account from Georgia Banking Company Georgia Banking’s Platinum Money Market account features a 0.45% APY on all balances. You’ll need at least $100 to open an account. The bank charges no monthly maintenance fee and requires no minimum balance to earn interest.

Established in 2001, Georgia Banking Company has two branch locations in Georgia.

SEE DETAILS Secured

on Georgia Banking Company’s secure website

Member FDIC

10. Sallie Mae Bank – 0.40%, no minimum deposit to open

Money Market from Sallie Mae Bank Sallie Mae Bank’s Money Market account offers a competitive 0.40% APY, which is compounded daily and paid monthly. The bank charges no monthly service fee, nor is there a minimum balance required to earn the account’s APY.

Sallie Mae Bank is a financial institution affiliated with Sallie Mae, the company widely known for its student loan business. It is an internet-only bank offered nationwide. In addition to its money market account, the bank offers savings accounts and certificates of deposit (CDs).

Money market account FAQ

A money market account is a special type of savings account. Cash you put in the account remains deposited with the financial institution, where it earns a variable annual percentage yield (APY). Because the name of this deposit product has the word market in it, you may assume that a money market account is some kind of investment product, but it’s not.

Money market accounts are a good choice if you have a big deposit you’d like to keep safe and growing at a high interest rate. Then, when you need to access that money — perhaps for an upcoming purchase or in an emergency — you can often easily do so with an ATM or debit card or by writing a check.

Pros:Cons:
  • Typically carry higher interest rates than savings accounts
  • Convenient access to your funds with check-writing abilities and a debit/ATM card (though not offered on all accounts)

  • May carry monthly maintenance fees or a high balance to waive one
  • Still limited to six transfers and withdrawals per month like a savings account (or you’ll face a fee)
  • Not the highest yield product for money you won’t need in the immediate future

Money market accounts often earn a higher rate than standard savings accounts. The caveat is that MMAs often require higher opening deposits or higher balances than a standard savings account. Even so, you may also find that one bank’s top money market rate earns at the same rate (or lower) as a savings account at another bank.

Another feature that differentiates a money market account from a savings account is that institutions generally make it easier to access deposited funds in a money market account by offering checks and ATM cards.

Money market accounts, like deposit accounts, provide FDIC insurance on your deposits up to $250,000. Money market funds, on the other hand, are investment accounts, most likely sold by your broker, and are regulated by the Securities and Exchange Commission (SEC) instead. Money market funds invest in highly liquid cash and cash equivalent securities that typically mature within 13 months. Additionally, money market funds charge expense ratios, or management fees, that are charged as a percentage of your fund.

Money market accounts often pay much lower interest rates than CDs do. CDs allow you to protect your investments over the years by locking in today’s high rates in a long-term account, while also staying flexible for any potential rate increases with your shorter-term accounts. The interest rate on a money market account can change right away, at the bank’s discretion.

Another key difference between a money market account versus a CD is accessibility. While money market accounts allow your money to keep growing while still remaining accessible, you’ll likely face a pretty heavy penalty — typically three to six months of interest — if you need to access your CD funds before it matures.