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. On January 7, 2019, 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. (Average CD rates referenced below are based on DepositAccounts.com data as of December 6, 2018.)
The best IRA rates in January 2019
Minimum Deposit Amount
Bethpage Federal Credit Union
CommunityWide Federal Credit Union
First Internet Bank
First Internet Bank
First Internet Bank
Mountain America Credit Union
Georgia Banking Company
United States Senate Federal Credit Union
3 Month IRA CD – Bethpage Federal Credit Union, 3 Month IRA (Traditional, Roth)
Three-month regular CDs are earning an average interest rate of 0.46% 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.
6-Month IRA CD – CommunityWide Credit Union, 6 Month IRA (Traditional, Roth)
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 2.30% APY for deposits of $2,000 and over. That translates into earnings of $22.87 if you were only to deposit the minimum amount. Compare that to the average of all regular 6 month CDs, at 0.78%.
1-Year IRA CD Rates – First Internet Bank, 12 Month IRA (Traditional, Roth)
18-Month IRA CD Rates – First Internet Bank, 18 Month IRA Certificate (Traditional, Roth)
18-month regular CDs earn an average interest rate of 1.49% APY. First Internet Bank on the other hand, is currently offering 2.90% APY on an 18-month IRA CD. You’ll need a minimum deposit of $1,000 to open the account.
2-Year IRA CD Rates – First Internet Bank, 24 Month IRA (Traditional, Roth)
Two-year regular CDs earn an average interest rate of 1.60% APY. First Internet Bank, on the other hand, is currently offering 3.03% APY on a 2-year IRA CD. This would translate into earnings of $63.17 with a minimum $1,000 deposit.
3-Year IRA CD Rates – Mountain America Credit Union, 3 Year IRA (Traditional, Roth)
Three-year regular CDs are earning an average interest rate of 1.77% APY currently. Mountain America Credit Union is exceeding that, with an interest rate of 3.35% APY with their 3-year IRA CD. You’ll need a minimum deposit amount of $500 to open this account.
4-Year IRA CD Rates – Georgia Banking Company, 4 Year IRA Certificate (Traditional, Roth)
Four-year regular CDs are currently earning an average interest rate of 1.92% APY. Georgia Banking Company claims the top interest rate for these IRA CDs, with an interest rate of 3.35% APY. It’s interesting enough to note that Mountain America Credit Union’s 3-year IRA is the same rate. You need a $500 minimum deposit to open this account.
5-Year IRA CD Rates – United States Senate Federal Credit Union, 60 Month IRA (Traditional, Roth, SEP)
Five-year IRA CDs hold the top spot for interest rates out of any category on our list. National averages for a regular 5-year CD is 2.21% APY, however United States Senate Federal Credit Union outperforms the average with a 3.56% APY on its 5-year IRA CD for members. The minimum deposit is $1,000 to earn this APY, but you can earn an APY of 3.62% if you deposit a minimum of $20,000 and an APY of 3.69% if you deposit a minimum of $60,000.
6+ Year IRA CD Rates – PenFed Credit Union, 7 Year IRA (Traditional, Roth, CESA)
PenFed Credit Union offers the highest term for their seven-year IRA CD, at 3.40% APY. That’s less than United States Senate Federal Credit Union which offers a 3.56% APY for a five-year IRA CD. Still, with PenFed Credit Union’s seven-year IRA CD, you would earn $263.70 on a minimum deposit of $1,000 when the IRA CD matures.
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.
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