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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 January 2020
Minimum Deposit Amount
Bellco Credit Union
State Department Federal Credit Union
Service Credit Union
MAC Federal Credit Union
America’s Credit Union
Credit Union of the Rockies
State Department Federal Credit Union
Evansville Teachers FCU
Best 3-month IRA CD – BethPage Federal Credit Union (Traditional, Roth)
The BethPage Federal Credit Union features the most competitive 3-month IRA CD that’s currently available, with an APY of 1.60% and a minimum deposit of just $50.
Best 6-month IRA CD – Bellco Credit Union (Traditional, Roth)
Bellco Credit Union is currently featuring a 6-month IRA CD that garners an impressive APY of 2.10%. This product requires a minimum deposit of $500. Additionally, Bellco is also offering a Coverdell Education Savings account, formerly known as an Education IRA, with a 2.10% APY.
Best 1-year IRA CD — State Department Federal Credit Union (Traditional, Roth)
This one-year term share certificate earns an APY of 2.22% and only requires a minimum deposit of $500. This is a significantly higher rate than the credit union’s traditional one-year share certificate, which earns an APY of 2.02%.
Best 18-month IRA CD — Service Credit Union
Service Credit Union is currently offering the most attractive option for an 18-month IRA CD, with its 18-month share certificate IRA boasting an APY of 2.25%. This product requires a minimum average daily balance of $1,000 in order to earn the APY. Dividends are compounded and credited monthly.
Best 2-year IRA CD – MAC Federal Credit Union (Traditional, Roth, CESA)
Although it’s headquartered in Alaska, MAC Federal Credit Union is open to anyone who joins the Polar Bear Chapter of the Association of the United States Army, which costs $40 for a two-year membership. MAC Federal Credit Union’s 24-month IRA / Roth IRA Share Certificate currently offers the best APY for a 2-year CD – 2.80%.
Best 3-year IRA CD – America’s Credit Union (Traditional, Roth, Educational)
America’s Credit Union steals the show for the best 3-year IRA CD. Its 33-month IRA Share Certificate doles out a generous APY of 2.53%, with a minimum opening deposit of $1,000. If you’ve got more cash than that to stash away, America’s Credit Union also offers a 33-month IRA Share Certificate with an APY of 2.78% for deposits of at least $100,000.
Best 4-year IRA CD – Credit Union of the Rockies(Traditional, Roth)
The Credit Union of the Rockies is currently offering an attractive promotion on its 4-year CD. Its 48-month promo CD features an APY of 2.60% with a minimum opening deposit of $1,000. Its non-promotional 4-year CD pales in comparison, with a minimum deposit of $500 but an APY of just 0.90%
Best 5-year IRA CD – State Department Federal Credit Union (Traditional, Roth)
The State Department Federal Credit Union scores the top spot for the best 5-year IRA CD. Currently, its 60-month IRA Certificate boasts an APY of 2.88% and a low minimum balance of $500. Dividends are calculated daily and credited monthly.
Best 6-year IRA CD — Evansville Teachers FCU (Traditional, Roth, CESSA)
To 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 6-year IRA CD rate offered by Evansville FCU is the best on the market in terms of APY. Plus, it only requires a minimum balance of $1,000.
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.