The Best IRA CD Rates – July 2019

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Top IRA CD rates
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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 another LendingTree company 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 July 2019

Term

Institution

APY

Minimum Deposit Amount

3 months

Bethpage Federal Credit Union

2.00%

$50

6 months

CommunityWide Federal Credit Union

2.35%

$2,000

12 months

State Department Federal Credit Union

2.83%

$500

18 months

Market USA FCU

2.76%

$500

2 years

State Department Federal Credit Union

2.93%

$500

3 years

Hughes Federal Credit Union

3.10%

$1,000

4 years

State Department Federal Credit Union

3.14%

$500

5 years

State Department Federal Credit Union

3.29%

$500

6+ years

First National Bank of America

3.00%

$1,000

 

3 Month IRA CD – Bethpage Federal Credit Union, 3 Month IRA (Traditional, Roth)

3 Month IRA from Bethpage Federal Credit Union
Three-month regular CDs are earning an average interest rate of 0.50% APY currently. Bethpage Federal Credit Union is exceeding that, with an interest rate of 2.00% APY with their 3-Month IRA CD. You only need a small minimum deposit of $50.

LEARN MORE 

NCUA Insured

 

6-Month IRA CD – CommunityWide Federal Credit Union, 6 Month IRA (Traditional, Roth)

6 Month IRA from Communitywide Federal Credit Union
Six-month IRA CDs typically earn a little bit better, but they’re normally still not great. CommunityWide Federal Credit Union, however, is breaking that norm by offering the highest interest rate at 2.35% APY for deposits of $2,000 and over. That translates into earnings of $23.86 if you were only to deposit the minimum amount. Compare that to the average of all regular 6 month CDs, at 0.91%.

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on Communitywide Federal Credit Union’s secure website

NCUA Insured

1-Year IRA CD Rates – State Department Federal Credit Union, 12 Month IRA Certificate (Traditional, Roth)

12 Month IRA Certificate from State Department Federal Credit UnionThis one-year term CD earns an APY of 2.83% and only requires a minimum deposit of $500. This is a significantly higher rate than the credit union’s traditional one-year CD, which earns an APY of 1.38%. If you deposited $5,000, that would earn you $147 by the time the account matured.

LEARN MORE Secured

on State Department Federal Credit Union’s secure website

NCUA Insured

18-Month IRA CD Rates –Market USA, 18 Month IRA (Traditional, Roth, CESA)

18 Month Preferred IRA from Market USA Federal Credit UnionYou can qualify for membership in this Maryland-based credit union by making a minimum $10 donation to the Market USA Cares Foundation. That’s a small price to pay for this 18-month share certificate with a high APY, but keep in mind that to qualify for this rate you must have a Market USA account that receives direct deposits and you must be enrolled in eStatements. That’s not a huge ask, but it is more than most other financial institutions require for earning a high APY on their CDs or share certificates.

LEARN MORE Secured

on Market USA Federal Credit Union’s secure website

NCUA Insured

 

2-Year IRA CD Rates – State Department Federal Credit Union, 24 Month IRA Certificate (Traditional, Roth)

24 Month IRA Certificate from State Department Federal Credit UnionRegular 2-year CDs earn an average interest rate of 1.66% APY. The 2-year IRA CD offered by State Department FCU, on the other hand, is currently offering 2.93% APY. That means on a deposit of $5,000, you would earn an estimated $308 in interest by the end of the CD’s term.

LEARN MORE Secured

on State Department Federal Credit Union’s secure website

NCUA Insured

3-Year IRA CD Rates – Hughes Federal Credit Union, 36 month IRA (Traditional, Roth, SEP)

36 Month IRA from Hughes Federal Credit UnionThis credit union based in Arizona allows anyone in the country to qualify for membership provided they make a $10 donation to one of several associations, including Friends of the Oro Valley Public Library, Friends of the Pima County Public Library, Friends of Green Valley Library, and Friends of Kirk-Bear Canyon Library. The high APY and relatively low minimum deposit makes this IRA CD a great choice.

LEARN MORE Secured

on Hughes Federal Credit Union’s secure website

NCUA Insured

4-Year IRA CD Rates – State Department Federal Credit Union, 48 Month IRA Certificate (Traditional, Roth)

48 Month IRA Certificate from State Department Federal Credit UnionRegular 4-year CDs are currently earning an average interest rate of 1.96% APY. State Department FCU continues to dominate the longer-term IRA CDs with its 48-month CD, boasting a rate of 3.14% APY. As with all State

LEARN MORE Secured

on State Department Federal Credit Union’s secure website

NCUA Insured

5-Year IRA CD Rates – State Department Federal Credit Union, 60-Month IRA (Traditional, Roth)

60 Month IRA Certificate from State Department Federal Credit UnionThe State Department FCU, a regular fixture of these lists, doesn’t disappoint with its 5-year IRA CD rates offering a high APY with a low minimum balance requirement of $500.

LEARN MORE Secured

on State Department Federal Credit Union’s secure website

NCUA Insured

6-Year IRA CD Rates – First National Bank of America, 84-Month IRA CD (Traditional, Roth)

84 Month IRA CD from First National Bank of AmericaFirst National Bank of America offers the highest term for their six-year IRA CD, at 3.00% APY. You only need a minimum deposit of $1,000 for this CD.

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on First National Bank Of America’s secure website

Member FDIC

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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Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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