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The Top 6 Month CD Rates for July 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

The top 6-month CD rates

Short-term certificate of deposit (CD) accounts offer investors a safe opportunity to squirrel away money for a future expense. If you’re looking for a brief solution for storing your cash and want to earn more interest than a typical savings account will offer, a 6 month CD can make a lot of sense. (It’s also a good place to start if you’re building a CD ladder.)

Using information from DepositAccounts.com, another LendingTree company and a database of offerings at more than 17,100 banks and credit unions, we found the five banks and five credit unions with the top 6 month CD rates. If there was a tie, we chose the institution with the smaller minimum-deposit requirement. We pulled these rates on July 5, 2019, and we excluded promotional offerings. The national average APY on 6 month CDs (among banks and credit unions) is 0.91%, according to the DepositAccounts.com database. These options outperform that average by a long shot. (You may also want to view our picks for the overall best CD rates.)

Banks with the best 6-month CD rates

BankAPYMinimum deposit amount
Banesco USA2.60%$1,500
MutualOne Bank2.53%$500
My eBanc2.40%$5,000
DollarSavingsDirect2.15%$1,000
ableBanking2.35%$1,000

Banesco USA — 2.60% APY, $1,500 minimum deposit amount

6 Month CD from Banesco USAOpen a BaneSmart Certificate of Deposit from Banesco USA to earn at some of the best CD rates. The 6 Month CD earns at a top rate on all balances below $250,000. You’ll need at least $1,500 to open the account.

Founded in 2006, Banesco USA is a part of Banesco International, a financial institution with a presence in 15 countries. Banesco USA has four business centers in South Florida and one in San Juan, Puerto Rico.

LEARN MORE 

Member FDIC

MutualOne Bank — 2.53% APY, $500 minimum deposit

6 Month CD from MutualOne BankFor the best adjacent 6-month CD rate at MutualOne Bank, consider its 7-month CD instead. You’ll have to wait just one more month for maturity, which is worth it considering the much higher rate on this account. You can open the account online with just $500. The early withdrawal penalty equals 90 days’ interest.

MutualOne Bank is a Massachusetts state-chartered mutual bank. It was originally Framingham Co-operative Bank when founded in 1889 and became MutualOne Bank in 2012.

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on MutualOne Bank’s secure website

Member FDIC

My eBanc — 2.40% APY, $5,000 minimum deposit

6 Month Online Time Deposit from My eBancA high-yield 6-month Online Time Deposit at My eBanc requires an opening deposit of at least $5,000. You can easily open the account online. The account doesn’t charge any maintenance fees. However, making an early withdrawal from the 6-month CD will trigger a penalty equal to 90 days’ worth of interest.

My eBanc is a division of BAC Florida Bank of Coral Gables, Fla., which is part of The Pellas Group. The CD program, open to all foreign and domestic customers, is designated as a “BAC Internet Time Deposit.” Overseas CDs based on the euro are not insured by the FDIC.

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Member FDIC

DollarSavingsDirect — 2.15% APY, $1,000 minimum deposit

6 Month CD from DollarSavingsDirectDollarSavingsDirect offers a select few CDs, including its high-yield 24-month CD. Interest is compounded daily and credited monthly. You’ll need at least $1,000 to open an account. It’s best to avoid an early withdrawal, as you’ll lose 90 days interest whether earned or not.

DollarSavingsDirect is an online banking division of Emigrant Bank, which was founded in 1850.

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on DollarSavingsDirect’s secure website

Member FDIC

ableBanking — 2.35% APY, $1,000 minimum deposit

6 Month CD from ableBankingFor another competitive 6-Month CD rate, check out ableBanking. You’ll need at least $1,000 to open an account, which you can do online. Early withdrawals will trigger a penalty of 90 days’ interest.

ableBanking was founded by former professionals from brick-and-mortar banks. A solely-online bank, ableBanking is a division of Maine-based Northeast Bank, founded in 1872. CD accounts are open to all U.S. residents over 18 years of age.

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on ableBanking’s secure website

Member FDIC

Credit unions with the best 6-month CD rates

Credit UnionAPYMinimum deposit amount
Andrews Federal Credit Union2.86%$1,000
Communitywide Federal Credit Union2.35%$2,000
Pinnacle Federal Credit Union2.20%$500
State Department Federal Credit Union2.06%$500
Bellco Credit Union2.00%$500

Andrews Federal Credit Union — 2.86% APY, $1,000 minimum deposit

8 Month Certificate Special from Andrews Federal Credit UnionTo earn the top credit union rate, head to Andrews Federal Credit Union for its slightly longer 8-Month Share Certificate. It earns at a rate comparable to longer-term CDs and higher than the top 6-month CD rate from a bank/ You’ll need at least $1,000 to open the account either online or at an Andrews FCU branch. The early withdrawal penalty equals 90 days of dividends.

Andrews Federal Credit Union was founded in 1948 and is headquartered in Suitland, Md. It currently serves over 120,000 members worldwide. Andrews FCU membership includes residents of Washington, DC, Maryland, Virginia and New Jersey, including Joint Base Andrews and Joint Base McGuire/Dix/Lakehurst. It serves military installations abroad in central Germany, Belgium and The Netherlands. Andrews FCU also extends membership to Select Employee Groups throughout Maryland, Virginia and New Jersey.

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on Andrews Federal Credit Union’s secure website

NCUA Insured

Communitywide Federal Credit Union — 2.35% APY, $2,000 minimum deposit

6 Month Share Certificate from Communitywide Federal Credit UnionWith at least $2,000, you can open a high-yield 6-month CW Certificate Account online. The early withdrawal penalty from this account is equal to the amount withdrawn multiplied by the remaining days left in the term.

Founded as a credit union to provide quality financial services to individuals in South Bend, Ind., Communitywide Federal Credit Union has grown to offer their services to various communities within Indiana as well as the digital world.

Anyone can become a member by donating to a list of organizations including the Y.M.C.A. If you’re a member of the Michiana Goodwill Boosters or Marine Corps. League of St. Joseph Valley, you’re also eligible to become a member.

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on Communitywide Federal Credit Union’s secure website

NCUA Insured

Pinnacle Federal Credit Union — 2.20% APY, $500 minimum deposit

6 Month CD from Pinnacle Federal Credit UnionIf you’ve got a few hundred dollars to stash away, consider parking your funds in a Pinnacle Federal Credit Union Share Certificate. The 6-Month Certificate requires at least $500 to open (as do the other certificate accounts). Early withdrawals from this account trigger a penalty of 90 days’ dividends. You can open an account online or at one of the credit union’s two New Jersey branches.

Pinnacle Federal Credit Union has been a not-for-profit credit union since 1962. It serves Edison, N.J. and the surrounding county with its two physical branches.Pinnacle Credit Union offers membership to employees of select partner companies and their family members. The credit union currently serves over 300 companies and 20,000 members. You can also join by becoming a member of the American Consumer Council. PCU will pay the $5 membership fee.

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on Pinnacle Federal Credit Union’s secure website

State Department Federal Credit Union — 2.06% APY, $500 minimum deposit

6 Month Certificate from State Department Federal Credit UnionWith another low minimum deposit requirement, State Department Federal Credit Union requires just $500 to open an account. There are no service charges and interest is compounded daily. An early withdrawal from this account will lose you either 30 days of dividends on the amount withdrawn or the amount of dividends earned since the date of issuance, whichever is less.

Founded in 1935, SDFCU is headquartered in Alexandria, Va. Customers also have access to the CO-OP Shared Branch network.

State Department FCU membership is open to employees of The U.S. Department of State. Eligibility is also determined through select organization membership, an immediate family member or the American Consumer Council. You and your employees may also apply for SDFCU membership as a group.

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on State Department Federal Credit Union’s secure website

NCUA Insured

Bellco Credit Union — 2.00% APY, $500 minimum deposit

6 Month CD from Bellco Credit UnionWith just $500, you can open a 6 Months Bellco CD. The amount of the early withdrawal penalty is 90 days interest on the amount withdrawn.

Bellco was founded in 1936 and maintains several branches throughout Colorado. You can join Bellco Credit Union if you live or work in select Colorado counties, are related to a member, work for a Bellco Select Employee Group or are a member of Consumers United Association. Non-Colorado residents may also be eligible through Bellco Foundation membership.

LEARN MORE Secured

on Bellco Credit Union’s secure website

NCUA Insured

Pros and cons of using 6 month CDs

Pros:

  • The CD rates offered by banks and credit unions are generally higher than those on savings accounts.
  • The rates are fixed and guaranteed for the length of their term.
  • The discipline of keeping the funds in the CD means the money will be available upon maturity. (Note: Most banks offer a seven-day grace period to reinvest or withdraw the investment, after which the funds will roll over into a new CD. However, you are not guaranteed the same rate.)

Cons:

  • Six-month CD rates are lower than those offered on longer CD investment terms.
  • To tap into the CD funds — even for emergencies — consumers must accept a loss through penalties, which can include a percentage of the funds, a percentage of the earned interest, or a combination of both. A typical penalty on a short-term CD is between 30 and 90 days’ worth of interest earnings.
  • If you’re not confident you can do without access to the funds for six months, you may be better off putting your money in a traditional savings account, which is likely to earn less interest than a CD.
  • Since CD rollovers may reset at a different percentage rate, consumers must speak with the bank before the grace period ends to ensure they are getting the best deal.

Using a 6 month CD for laddering

A CD ladder comprises small-amount CDs with varying terms and respective interest rates that contribute to a long-term investment strategy. After the 6 month CD matures, investors can withdraw the funds for a predetermined expense. Or, they can reinvest the money into a longer-term CD with a better rate. By staggering the maturity dates on short-term CDs, consumers have access to their cash on a regular, predictable basis.

Where can you open a CD account?

Consumers can open 6 month CD accounts (or longer) from banks and credit unions. Bank and credit union CD rates are based on Federal Reserve rates, and there may be strategic times to pursue these short-term instruments following a rate increase.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Gabby Hyman
Gabby Hyman |

Gabby Hyman is a writer at MagnifyMoney. You can email Gabby here

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Best of, Earning Interest

The Best Credit Union CD Rates – July 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

The top credit union CD rates
Source: iStock

Certificates of deposit (CDs) are a great way to safely store your savings at a financial institution, as they offer a guaranteed rate of return, and CD rates tend to be higher than those on traditional savings accounts. Maybe you’ve even heard that credit union CD rates offer higher returns—but is that really the case?

On average, yes. As of March 2019, the average one-year credit union CD had a 1.40% annual percentage yield (APY), compared to the 1.10% APY average among one-year bank CDs.

Using data from DepositAccounts.com, another LendingTree company, we identified the top one-year credit union CD rates, as of July 3, 2019. We then eliminated any credit union with a health rating lower than a B and identified the top offerings in three categories: restricted, no cost, and best banking app. If there was a tie by APY, we went with the product with the lower minimum deposit. Here are the best one-year credit union CD rates.

Best credit union CD rates with restricted memberships or membership fees

Each of these credit unions have restricted membership criteria, but don’t let that scare you away. If you don’t meet their membership criteria, it’s possible to make a small donation to their charity of choice in order to become eligible for membership. Furthermore, these credit union CD rates offer some of the highest-returning share certificates out of any category.

State Department Federal Credit Union– 12 Month Share Certificate, 2.63% APY, min. deposit $500

12 Month Certificate from State Department Federal Credit UnionDon’t worry, you don’t need a security clearance from the federal government to join this credit union—you simply need to sign up with the American Consumer Council and you can begin enjoying the benefits of your new membership.

One of those benefits, should you so choose, includes this 12-Month Share Certificate, which allows you to park your money in an account earning 2.63% APY with a minimum deposit of at least $500. You’ll have to pay 180 days worth of interest if you withdraw your money from the certificate before it matures, but it’s worth noting you can make a partial early withdrawal — and pay the penalty — without closing out the account completely.

LEARN MORE Secured

on State Department Federal Credit Union’s secure website

NCUA Insured

Quorum Federal Credit Union – 12 Month Term Savings CD, 2.60% APY, min. $1,000

12 Month Term Savings CD from Quorum Federal Credit UnionHeadquartered in New York State, Quorum Federal Credit Union offers membership eligibility to anyone who joins the Ameircan Consumer Council. This credit union provides its members with all of the standard banking services you’d expect, including a suite of term savings deposits (CDs). While Quorum’s CD rates are strong across the board, of particular interest is the 2.60% APY earned by the 12 month term CD.

LEARN MORE Secured

on Quorum Federal Credit Union’s secure website

NCUA Insured

Alliant Credit Union – 12-17 Month Share CD, 2.50% APY, min. deposit $1,000

Alliant Credit Union
With a minimum deposit of $1,000, you could earn an APY of 2.50% on a 12-17 month CD. An early withdrawal penalty of 90 days’ worth of interest may be imposed if you withdraw funds prior to the CD’s maturity date.

With a $10 donation to Foster Care to Success, you can easily become a member of Alliant Credit Union. You can also become a member if you are an employee or retiree of certain organizations, related to existing Alliant members, or live or work in qualifying communities.

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on Alliant Credit Union’s secure website

NCUA Insured

Sun East Federal Credit Union – 12 Month CD, 2.50% APY, min. deposit $500

12 Month CD from Sun East Federal Credit Union

Headquartered in Aston, PA, this credit union offers its services to members nationwide via the internet. Anyone can join this credit union by making a $10 donation to the Sun East Charitable Foundation, allowing them to enjoy one of the most competitive CDs around.

Depositors into this CD can expect an APY of 2.50% should they let the certificate fully mature. Otherwise, they face a penalty of 180 days worth of interest if they withdrawal the funds early.

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on Sun East Federal Credit Union’s secure website

NCUA Insured

Utah First FCU – 12 month CD, 2.40% APY, min deposit $500

12 Month CD from Utah First Federal Credit Union
The credit union may be called Utah First, but maybe they should change their name to “Saver First” considering the deal on this account! But first, you have to qualify for membership via a $5 annual donation to the Community Volunteers of Utah (assuming you don’t qualify by any other means). Then you can take advantage of the 2.40% APY offered on this CD.

LEARN MORE Secured

on Utah First Federal Credit Union’s secure website

NCUA Insured

Connexus Credit Union – 12 Month CD, 2.50% APY, min deposit $5,000

12 Month Certificate from Connexus Credit Union

This Midwest-based credit union makes it easy for anyone in the country to qualify for membership, requiring only a $5 donation to the Connexus Association (which promotes financial literacy and education). The 12 month term CD (or share certificate, as the credit union calls it) offers a high APY as long as you’re willing to part with at least $5,000 to fund it. Given the high interest rate offered, you may want to put in far more than the minimum.

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on Connexus Credit Union’s secure website

NCUA Insured

Best CD rates for credit unions with no cost to join

The thing about credit unions is that they’re not usually just open to anyone. You usually need to meet some membership criteria in order to get in and get access to all of their really nice products. These credit unions, however, will let you in for free regardless of your personal details. (Note: Only two credit unions met our criteria for this list.)

Unify Financial Credit Union – 1-Year Share Certificate, 1.75% APY, min. deposit $1,000

UNIFY Financial Credit Union
Unify FCU offers the highest interest rates on CDs (which it calls share certificates) of any credit union with no cost to join. The interest rate on their 12-month CD, for example, is 1.75%, compared to the national average of 1.37% in July. You’ll need to deposit a minimum of $1,000 to open this CD. If you withdraw your money early, however, you’ll face a penalty of 90 days’ worth of interest.

LEARN MORE Secured

on UNIFY Financial Credit Union’s secure website

NCUA Insured

NASA Federal Credit Union – 1-Year Share Certificate, 1.60% APY, min. deposit $1,000

NASA Federal Credit Union
If the rigid inflexibility of CDs makes you leery, NASA FCU might be your best bet. They have a lot of flexible certificates, such as add-on certificates that let you start with as little as $250, and bump-rate certificates that let you opt for a one-time interest rate increase if rates go up. You can even take out a loan from your certificate should you need the cash before it’s matured. You can join NASA FCU with a complimentary membership to the National Space Society.

If you do need to make an early withdrawal, you will face a penalty of 180 days’ worth of interest.

LEARN MORE Secured

on NASA Federal Credit Union’s secure website

NCUA Insured

Best CD rates for credit unions with the best mobile apps

By their very nature, CDs aren’t something that require constant attention, poking, and prodding. It’s a set-it-and-forget-it kind of a deal, so you won’t need any spiffy banking apps to use CDs.

But, if you’d like to switch all of your banking to the same institution that holds your CDs, it might be a wise idea to consider one of these credit unions if you’re a digital junkie. Most credit unions lag behind their bank compatriots in terms of mobile banking apps, but these credit unions offer top-notch mobile apps, according to MagnifyMoney’s 2018 mobile banking app analysis.

Redstone Federal Credit Union – 12 Month MemberPlus Regular Share Certificate, 2.52% APY, min. deposit $1,000

Redstone Federal Credit Union
You can’t just make a simple donation to join to Redstone Federal Credit Union if you fail to meet their membership criteria. You need to be a government employee or contractor, a member of the military, reserve, or National Guard, or affiliated with a number of organizations listed on their website among other options.

However, if you do qualify for membership, you could earn an APY of 2.52% with a minimum deposit of $1,000. Redstone FCU has compounding and non-compounding certificates, which allow you to have the option to withdraw interest earned or not throughout the term of the certificate.

LEARN MORE Secured

on Redstone Federal Credit Union’s secure website

NCUA Insured

Wright-Patt Credit Union – 1-Year Certificate, 2.07% APY, min. deposit $500

Wright-Patt Credit Union
Unlike many credit unions, you can’t just make a simple donation to join Wright-Patt CU if you fail to meet their membership criteria. You need to live in certain areas of Ohio, be associated with Wright-Patterson Air Force Base, or be an employee of their select employer group, among other options.

You can earn $10.35 on a 12-month CD with just a relatively small $500 deposit. However, if you’re able to deposit $100,000 or more, you’ll earn an APY of 2.17%, which will return $2,170 in interest. Early withdrawal penalties vary depending on the original term of your CD, however they’ll be anywhere between 5-12 months’ worth of dividends.

LEARN MORE Secured

on Wright-Patt Credit Union’s secure website

NCUA Insured

Eastman Credit Union – 1-Year Investment Certificate, 2.25% APY, min. deposit $1,000

Eastman Credit Union
Eastman Credit Union also has pretty restrictive membership requirements. You’ll have to be an employee (or a family member of an employee) of one of their select employers, or live in certain parts of Tennessee, Texas, or Virginia.

Eastman CU is another one of the rare credit unions that allow you to withdraw your dividends penalty-free before the maturity date, although again, doing so will lower your total returns. Currently, you can earn an interest rate of 2.25% on a 12-month CD with a minimum deposit of $1,000. If you withdraw your money before the CD matures, you’ll owe a penalty fee of anywhere between seven days’ worth of dividend earnings or all of your dividend earnings.

LEARN MORE Secured

on Eastman Credit Union’s secure website

NCUA Insured

Delta Community Credit Union – 1-Year Certificate, 1.75% APY, min. deposit $1,000

Delta Community Credit Union
There are many ways to join Delta Community CU, such as living in certain parts of Georgia, being a member of one of their select employers, or being a member of one of their partner organizations. Interestingly, citizens of many countries like Argentina, France, and Peru are also eligible to join.

Delta Community CU used to be the lowest-earning credit union on our list, but recently increased the APY on this product from 1.10% to 1.75%. The early withdrawal penalty is 90 days’ worth of interest on a 12-month CD.

LEARN MORE Secured

on Delta Community Credit Union’s secure website

NCUA Insured

3 questions to consider before opening a credit union CD

Banks are more likely to call their products certificates of deposit, while credit unions often refer to them as share certificates. Aside from the name, the biggest difference between the two is that credit unions have higher average annual percentage yields (APYs) than traditional banks, as of September 2018. That’s good news: It means more money back in your pocket when the CD matures (i.e., reaches the end of its term and is available for withdrawal).

There really is no difference in safety between depositing money in a CD with a credit union versus a bank, as long as they participate in either the National Credit Union Administration (NCUA) for credit unions, or the Federal Deposit Insurance Corporation (FDIC) for banks.

According to Neal Frankle, a Los Angeles-based Certified Financial Planner with Wealth Pilgrim, deposits of up to $250,000 per financial institution are “backed by the full faith and credit of United States Government, so it’s pretty solid.”

For the most part, choosing a CD at a bank or a credit union boils down to your preference as a consumer: Do you want to be a bank customer or a member of a credit union? Here’s a primer on the differences.

The biggest advantage of credit union CDs over bank CDs is that you can likely earn more interest. But with both products, the longer the CD term, the more interest you will earn. And with a CD laddering strategy, you can have the best of both worlds: frequent access to your money, yet you can still keep it locked away in high-interest, long-term CDs.

Beyond that, the disadvantages of opening a credit union CD are the same as if you’re opening a CD with a bank. You can’t access that money without paying an early withdrawal penalty until the CD matures. While CDs do offer some of the highest rates for any financial product you’re likely to come across at a bank or credit union, they still don’t really earn great interest. If you’re investing for the long-term (like retirement savings), your money is better invested in the riskier (but higher-earning) stock or bond market.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

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

Advertiser Disclosure

Best of, Earning Interest

The Best IRA CD Rates – July 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Top IRA CD rates
Source: iStock

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 July 2019

Term

Institution

APY

Minimum Deposit Amount

3 months

Bethpage Federal Credit Union

2.00%

$50

6 months

CommunityWide Federal Credit Union

2.35%

$2,000

12 months

State Department Federal Credit Union

2.83%

$500

18 months

Market USA FCU

2.76%

$500

2 years

State Department Federal Credit Union

2.93%

$500

3 years

Hughes Federal Credit Union

3.10%

$1,000

4 years

State Department Federal Credit Union

3.14%

$500

5 years

State Department Federal Credit Union

3.29%

$500

6+ years

First National Bank of America

3.00%

$1,000

 

3 Month IRA CD – Bethpage Federal Credit Union, 3 Month IRA (Traditional, Roth)

3 Month IRA from Bethpage Federal Credit Union
Three-month regular CDs are earning an average interest rate of 0.50% 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.

LEARN MORE 

NCUA Insured

 

6-Month IRA CD – CommunityWide Federal Credit Union, 6 Month IRA (Traditional, Roth)

6 Month IRA from Communitywide Federal Credit Union
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 2.35% APY for deposits of $2,000 and over. That translates into earnings of $23.86 if you were only to deposit the minimum amount. Compare that to the average of all regular 6 month CDs, at 0.91%.

LEARN MORE Secured

on Communitywide Federal Credit Union’s secure website

NCUA Insured

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 2.83% 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 1.38%. If you deposited $5,000, that would earn you $147 by the time the account matured.

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on State Department Federal Credit Union’s secure website

NCUA Insured

18-Month IRA CD Rates –Market USA, 18 Month IRA (Traditional, Roth, CESA)

18 Month Preferred IRA from Market USA Federal Credit UnionYou can qualify for membership in this Maryland-based credit union by making a minimum $10 donation to the Market USA Cares Foundation. That’s a small price to pay for this 18-month share certificate with a high APY, but keep in mind that to qualify for this rate you must have a Market USA account that receives direct deposits and you must be enrolled in eStatements. That’s not a huge ask, but it is more than most other financial institutions require for earning a high APY on their CDs or share certificates.

LEARN MORE Secured

on Market USA Federal Credit Union’s secure website

NCUA Insured

 

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 1.66% APY. The 2-year IRA CD offered by State Department FCU, on the other hand, is currently offering 2.93% 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.

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on State Department Federal Credit Union’s secure website

NCUA Insured

3-Year IRA CD Rates – Hughes Federal Credit Union, 36 month IRA (Traditional, Roth, SEP)

36 Month IRA from Hughes Federal Credit UnionThis credit union based in Arizona allows anyone in the country to qualify for membership provided they make a $10 donation to one of several associations, including Friends of the Oro Valley Public Library, Friends of the Pima County Public Library, Friends of Green Valley Library, and Friends of Kirk-Bear Canyon Library. The high APY and relatively low minimum deposit makes this IRA CD a great choice.

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on Hughes 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 1.96% APY. State Department FCU continues to dominate the longer-term IRA CDs with its 48-month CD, boasting a rate of 3.14% APY. As with all State

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on State Department Federal Credit Union’s secure website

NCUA Insured

5-Year IRA CD Rates – State Department Federal Credit Union, 60-Month IRA (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

6-Year IRA CD Rates – First National Bank of America, 84-Month IRA CD (Traditional, Roth)

84 Month IRA CD from First National Bank of AmericaFirst National Bank of America offers the highest term for their six-year IRA CD, at 3.00% APY. You only need a minimum deposit of $1,000 for this CD.

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on First National Bank Of America’s secure website

Member FDIC

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