The Best IRA CD Rates – May 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 May 2019

Term

Institution

APY

Minimum Deposit Amount

3 months

Advancial Credit Union

2.52%

$1,000

6 months

Advancial Credit Union

2.56%

$1,000

12 months

State Department Federal Credit Union

2.93%

$500

18 months

First Internet Bank

2.86%

$1,000

2 years

State Department Federal Credit Union

3.03%

$500

3 years

State Department Federal Credit Union

3.14%

$500

4 years

State Department Federal Credit Union

3.24%

$500

5 years

State Department Federal Credit Union

3.39%

$500

6+ years

INOVA Federal Credit Union

3.50%

$200

 

3 Month IRA CD – Advancial Credit Union, 3-Month Regular IRA (Traditional, Roth, CESA)

6 Month Regular Certificate from Advancial

This Texas-based credit union has topped the charts of short-term CDs with ultra competitive rates, in this case offering an APY of 2.52% for a 3-month IRA CD. This does require a minimum deposit of $1,000 to open, and there’s another catch—being able to join the credit union in the first place. Advancial offers membership only to the following:

  • Anyone who lives, works, studies or worships in certain parishes in the state of  Louisiana. More specifically Acadia, Avoyelles, Evangeline, Iberia, Lafayette, St. Landry, St. Martin, or Vermillion
  • Anyone who works at select companies (usually in the petroleum refinement industry) or is a member of select organizations.
  • Anyone who has an immediate family member or household member fulfill one of the above requirements

The easiest (though by no means easy) way to join is to first become a member of one of the select organizations and then apply for membership with Advancial. This is less convenient than what many credit unions do to bring in new customers, which is to allow them to make a donation to a select organization during the sign-up process for the account.

6-Month IRA CD – Advancial Credit Union, 6 Month Regular IRA (Traditional, Roth, CESA)

6 Month Regular Certificate from Advancial
Again, despite the annoyance of having to separately sign up for a different organization before joining Advancial, this credit union seems to tick all the boxes anyone looking for a short-term CD could hope for—namely a high APY. Given the current high interest rate, those depositors certain of their choice should go ahead and lock in this rate while it still lasts.

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 2.93% 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 2.73%. 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 – First Internet Bank, 18 Month IRA (Traditional, Roth)

18 Month IRA from First Internet BankThis online-only bank currently offers the best rate on 18-month IRA CDs with a 2.86% APY. That’s a good deal compared to the 1.58% average APY earned by traditional CDs of this term. First Internet Bank’s rate would translate into an earning of $28.60 with a minimum $1,000 deposit.

LEARN MORE Secured

on First Internet Bank’s secure website

Member FDIC

 

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 1.67% APY. The 2-year IRA CD offered by State Department FCU, on the other hand, is currently offering 3.03% 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 – State Department Federal Credit Union, 36 Month IRA Certificate (Traditional, Roth)

36 Month IRA Certificate from State Department Federal Credit UnionThree-year regular CDs are earning an average interest rate of 1.86% APY currently. Once again State Department FCU goes above and beyond, granting depositors an interest rate of 3.14% APY with their 3-year IRA CD. You’ll need a minimum deposit amount of $500 to open this account.

LEARN MORE Secured

on State Department 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 1.97% APY. State Department FCU continues to dominate the longer-term IRA CDs with its 48-month CD, boasting a rate of 3.24% 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 Certificate (Traditional, Roth)

60 Month IRA Certificate from State Department Federal Credit Union Five-year IRA CDs hold the top spot for interest rates out of any category on our list. The national average for a regular 5-year CD is 2.24% APY, however State Department FCU trounces that with 3.39% APY on its 5-year IRA CD. The minimum deposit is $500 to earn this APY.

LEARN MORE Secured

on State Department Federal Credit Union’s secure website

NCUA Insured

6+ Year IRA CD Rates – INOVA Federal Credit Union, 6 Year IRA (Traditional, Roth, CESA)

6 Year IRA from INOVA Federal Credit UnionINOVA Federal Credit Union offers the highest term for their six-year IRA CD, at 3.50% APY. You only need a minimum deposit of $200 for this CD, but putting $5,000 in this account would earn you an estimated $1,146 at the end of the six year term.

LEARN MORE Secured

on INOVA 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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Lindsay VanSomeren
Lindsay VanSomeren |

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

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