The Best IRA CD Rates – January 2020

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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

Term

Institution

APY

Minimum Deposit Amount

3 months

BethPage FCU

1.60%

$50

6 months

Bellco Credit Union

2.10%

$500

12 months

State Department Federal Credit Union

2.22%

$500

18 months

Service Credit Union

2.25%

$1,000

2 years

MAC Federal Credit Union

2.80%

$1,000

3 years

America’s Credit Union

2.53%

$1,000

4 years

Credit Union of the Rockies

2.60%

$1,000

5 years

State Department Federal Credit Union

2.88%

$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 – Bellco Credit Union (Traditional, Roth)

 6-month IRA CD from Bellco Credit Union
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.

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on Bellco 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 2.22% 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%.

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on State Department Federal Credit Union’s secure website

NCUA Insured

Best 18-month IRA CD — Service Credit Union

18 Month IRA Certificate from Service Credit UnionService 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.

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NCUA Insured

Best 2-year IRA CD – MAC Federal Credit Union (Traditional, Roth, CESA)

24 Month IRA from MAC Federal Credit UnionAlthough 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%.

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on MAC Federal Credit Union’s secure website

NCUA Insured

Best 3-year IRA CD – America’s Credit Union (Traditional, Roth, Educational)

33 Month IRA from America's Credit UnionAmerica’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.

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on America's Credit Union’s secure website

NCUA Insured

Best 4-year IRA CD – Credit Union of the Rockies(Traditional, Roth)

48 Month Promotional IRA from Credit Union Of The RockiesThe 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%

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on Credit Union Of The Rockies’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 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.

LEARN MORE Secured

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.

LEARN MORE Secured

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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