The Best IRA CD Rates – November 2019

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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 November 2019

Term

Institution

APY

Minimum Deposit Amount

3 months

BethPage FCU

1.60%

$50

6 months

CommunityWide Federal Credit Union

2.20%

$2,000

12 months

State Department Federal Credit Union

2.42%

$500

18 months

Market USA Federal Credit Union

2.36%

$500

2 years

Pennsylvania State Employees Credit Union

2.00%

$500

3 years

Pennsylvania State Employees Credit Union

2.25%

$500

4 years

American 1 Credit Union

2.78%

$50

5 years

State Department Federal Credit Union

3.09%

$500

6+ years

Evansville Teachers FCU

2.40%

$1,000

 

Best 3-month IRA CD – BethPage Federal Credit Union (Traditional, Roth)

3 Month IRA from Bethpage Federal Credit Union
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.

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NCUA Insured

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 2.20% APY for deposits of $1,000 and over. That translates into earnings of $11.19 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

Best 1-year IRA CD — State Department Federal Credit Union (Traditional, Roth)

12 Month IRA Certificate from State Department Federal Credit UnionThis one-year term share certificate earns an APY of 2.42% 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 2.22%.

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on State Department Federal Credit Union’s secure website

NCUA Insured

Best 18-month IRA CD — Market USA Federal Credit Union IRA CD (Traditional, Roth, CESA)

18 Month Preferred CD from Market USA Federal Credit UnionMarket USA FCU’s 18-month IRA CD earns a competitive rate of 2.36% APY, with a $500 minimum deposit to open. Dividends are compounded daily and credited monthly. With a $1,000 deposit, you stand to earn $35.61 in dividends over the term of the certificate.

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on Market USA Federal Credit Union’s secure website

NCUA Insured

Best 2-year IRA CD – Pennsylvania State Employees Credit Union (Traditional, Roth, CESA)

24 Month IRA from Pennsylvania State Employees Credit Union Despite its name, the Pennsylvania State Employees Credit Union is open to anyone who joins the Pennsylvania Parks and Recreation Society, which has a $20 membership fee. This credit union offers a highly competitive, 24-month IRA CD with an APY of 2.00%, well above its competitors. There is a $500 minimum required to open an IRA share certificate.

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on Pennsylvania State Employees Credit Union’s secure website

NCUA Insured

Best 3-year IRA CD – Pennsylvania State Employees Credit Union (Traditional, Roth, CESA)

36 Month IRA from Pennsylvania State Employees Credit Union

Pennsylvania State Employees Credit Union claims another spot on our ranking of the best IRA CDs, with its 36 month IRA CD. This product boasts an impressive APY of 2.25% and a minimum deposit of just $500.

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on Pennsylvania State Employees Credit Union’s secure website

NCUA Insured

Best 4-year IRA CD – American 1 Credit Union (Traditional, Roth, CESA)

4 Year IRA from American 1 Credit UnionThe American 1 Credit Union takes the cake for the best 4-year IRA CD. This CD has a minimum of just $50 and an APY of 2.78%, several percentage points above its competitors. Membership to this credit union is open to anyone through membership of the Community 1 Cooperative, which has just a $3 fee.

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on American 1 Credit Union’s secure website

NCUA Insured

Best 5-year IRA CD — State Department Federal Credit Union (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.

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on State Department Federal Credit Union’s secure website

NCUA Insured

Best 6-year IRA CD — Evansville Teachers FCU (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 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.

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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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Lindsay VanSomeren
Lindsay VanSomeren |

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

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