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Earning Interest

Top Jumbo CD Rates for September 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.

Jumbo CD rates
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Conservative savers generally consider certificates of deposits (CDs) as sanctuaries where their money is kept safe and they enjoy a decent yield without stomaching the risk of investing in the stock market.

You agree to deposit your money in a bank or credit union for a fixed amount of time (which can be as short as a few months or as long as several years) and get the satisfaction of knowing your money is likely earning a higher annual percentage yield (APY) than it would in a checking or savings account.

Jumbo CDs, which in most cases require a minimum deposit of $100,000, have traditionally promised even higher APYs for customers than regular CDs. But a combination of rising interest rates and fierce competition among banks — both online and traditional — for the deposits of customers have given rise to many normal CDs that offer a better return than jumbo CDs.

It’s not entirely clear why banks haven’t been similarly aggressive in offering higher-yield jumbo CD rates as they have with regular CDs, but one possibility is that they are interested in attracting more customers rather than big money deposits. In other words, banks would rather have the business of 100 customers each depositing $5,000 CDs than 10 customers depositing $500,000 jumbo CDs.

Regular 1-Year CD vs 1-Year Jumbo CD

Institution

Goldman Sachs Bank USA

My eBanc

CD Term

1 year

1 year

APY

2.25%

2.25%

Minimum Deposit Amount

$500

$100,000

LEARN MORE Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

learn more

Regular 3-Year CD vs 3-Year Jumbo CD

Institution

MAC Federal Credit Union

Veridian Credit Union

CD Term

3 year

3 year

APY

3.00%

2.10%

Minimum Deposit Amount

$1,000

$100,000

LEARN MORE Secured

on MAC Federal Credit Union’s secure website

NCUA Insured

Learn more

Regular 5-Year CD vs 5-Year Jumbo CD

Institution

Goldman Sachs Bank USA

KS StateBank

CD Term

5 year

5 year

APY

2.45%

1.95%

Minimum Deposit Amount

$500

$100,000

LEARN MORE Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

Learn more

That said, if you feel the need to go big when it comes to your CD, then you likely won’t find better rates than the ones listed below.

The top jumbo CD rates of September 2019

To determine the best CDs for your jumbo-sized deposit, we turned to the database found on DepositAccounts.com, a website that like MagnifyMoney is also owned by LendingTree. For each common CD term, we assumed the customer was planning to deposit $100,000 in the account so as to include traditional jumbo CDs which typically have a higher minimum deposit needed to open. All the accounts included are also available nationwide.

You’ll notice as you read through the list of CDs we’ve selected, that some of them have minimum deposits of far less than $100,000. That’s because we’re focused on informing you of the best CD accounts for your money, and there are plenty of large minimum deposit CDs that still offer a great APY. You can rest assured we aren’t leaving out any good deals just because a financial institution’s marketing team decided not to call a CD “jumbo.”

Institution

CD Term

APY

Minimum Deposit Amount

Total Direct Bank3 months2.20%$25,000
Merrick Bank6 months2.19%$25,000
Total Direct Bank12 months2.50%$25,000
Merrick Bank18 months2.45%$25,000
Hughes FCU24 months2.53%$99,000
Hughes FCU36 months3.10%$99,000
Commonwealth One FCU48 months3.01%$100,000
Commonwealth One FCU60 months3.21%$100,000

As of September 9, 2019

Banks that offer the best jumbo CD rates

Total Direct Bank — 3-month CD, 2.20% APY; 12-month CD, 2.50% APY

TotalDirectBank

Total Direct Bank is an internet bank that lacks any physical branches and offers its high-yielding deposit productions throughout the United States. Note that Total Direct is a division of City National Bank of Florida, which holds your deposits and provides FDIC insurance. All of Total Direct Bank’s CD products require a sizable minimum deposit of $25,000, including the 3-month certificate and the 12-month certificate. It’s worth noting as well that the maximum deposit amount allowed per client with Total Direct is $500,000.

Both CD maturities nenew automatically, with a ten-day grace period following maturity to withdraw your funds without being charged a penalty. Interest is paid at maturity, either by check or bank transfer to another account, or it can be rolled over into a new certificate with the original principal.

LEARN MORE Secured

on TotalDirectBank’s secure website

Member FDIC

Merrick Bank — 6-month CD, 2.19% APY; 18-month CD, 2.45% APY

Merrick Bank
Based in Utah, Merrick Bank is an internet bank that was established in 1997. Merrick has carved out a business offering credit cards, personal loans and certificates of deposit. You’ll need $25,000 to open the bank’s 6-month or 18-month CDs, and the sole funding method is by ACH transfer. For both maturities, interest is compounded daily and paid on a monthly basis, and may not be withdrawn until maturity. Note that the CDs renew automatically at maturity, and you have at ten-day grace period to withdraw your funds without penalty.

LEARN MORE Secured

on Merrick Bank’s secure website

Member FDIC

Hughes FCU — 24-month CD, 2.53% APY; 36-month CD, 3.10% APY

Hughes Federal Credit Union
Hughes Federal Credit Union is based in Arizona and offers two of our leading jumbo CDs, or what it calls “certificate accounts.” Hughes offers regular, mini-jumbo and jumbo certificate accounts, with the most attractive APYs available on its jumbo accounts. With the 24-month and 36-month jumbo certificates, interest is compounded daily and credited monthly.

Joining Hughes FCU is as easy as making a $10 donation to one of several local Ariozona public libraries. Membership is also open to anyone who lives or works in Tucson, Arizona, as well as employees and employee family members of more than 800 sponsor companies and organizations, not to mention employees of the State of Arizona and the University of Arizona.

LEARN MORE Secured

on Hughes Federal Credit Union’s secure website

NCUA Insured

Commonwealth One FCU — 48-month CD, 3.01% APY; 60-month CD, 3.21% APY

Commonwealth One Federal Credit Union
Commonwealth One Federal Credit Union calls its CDs share certificates, and offers a full slate of maturities for both its conventional and jumbo certificates. The 48-month and 60-month jumbo share certificates earn very decent APYs, and feature a minimum deposit of $100,000. Interest on the certificates is compounded daily and posted to the certificate quarterly. These share certificates renew automatically at maturity, and there is a seven-day grace period to withdraw funds after maturity date without penalty.

Commonwealth One opens its membership rolls to anyone who is a member of the Virginia Consumer Council, a division of the American Consumer Council. In addition, anybody who lives, works or attends school in Washington D.C., or areas of northern Virginia are also eligible to join. Membership is also open to employees of more than 200 sponsor organizations.

LEARN MORE Secured

on Commonwealth One Federal Credit Union’s secure website

NCUA Insured

 

Go jumbo or stick to regular CDs?

To be considered “jumbo,” a CD needs to require a large minimum deposit, usually $100,000, as opposed to a normal CD which may not even require a minimum deposit. The deal banks made with well-off depositors boiled down to ‘if you leave lots of your money with us in this jumbo CD, we’ll give you a higher yield than if you deposited it in a normal CD.’

It’s important to note the differences between a jumbo CD and regular CD aren’t set in stone and have more to do with how the bank or credit union markets their savings products than any hard and fast rule, says Ken Tumin, founder of DepositAccounts.com, another LendingTree-owned site.

“I’ve seen banks and credit unions with jumbo CD minimums as low as $10,000 and as high as $250,000,” Tumin told MagnifyMoney. “Even if a bank doesn’t offer jumbo CDs with high minimums, someone could still deposit a large balance into a regular CD. They just wouldn’t be earning any higher interest than someone depositing a small balance.”

As the difference in earnings from a jumbo CD and traditional CD has diminished (or disappeared completely), the drawbacks of parking so much money in a CD become more apparent. For example, the jumbo CDs with the highest APY usually require a longer period of time to mature, which means you have at least $100,000 exposed to inflation—which means you possibly end up earning less than you expected.

Withdrawal penalties on jumbo CDs

According to a recent survey, the penalties for withdrawing your money from your CD early could be serious. Some banks will even take part of your principal as a penalty.

Below are the most common penalties, according to the survey:

  • 3 month CD: Three months of interest
  • 6 month CD: Three months of interest
  • 1 year CD: Six months of interest
  • 2 year CD: Six months of interest
  • 5 year CD: A year’s worth of interest

So, it’s important to be confident that you want to put your money in a CD. When you do this, you’re making an agreement with the bank to leave it there for a set period of time. If you’re unsure if you want to tie up your money for a long period of time, consider a high-yield savings account instead.

How jumbo CDs are taxed

It’s important to know that the interest you earn on your jumbo CD will be taxed as interest income, not as capital gains income.

This means that your bank or credit union will send you a 1099-INT form at the end of the year to show how much interest you earned in your jumbo CD and you will be taxed on that.

Are jumbo CDs safe?

According to the U.S. Securities and Exchange Commission: “Certificates of deposit are considered to be one of the safest savings options. A CD bought through a federally insured bank is insured up to $250,000.”

Some people prefer investing in the stock market over CDs because you can often get higher rates of returns; however, the stock market is a riskier bet, and returns are not guaranteed like those associated with CDs.

CDs are not affected by the whims of the stock market. The interest rate you agree on with your bank is the rate you will get. That interest rate, however, may not outpace inflation, meaning you may not really earn much, if anything, over time.

Final thoughts

If you have over $100,000 and want to invest it in a jumbo CD, you have several options. Like the chart above shows, you can choose many different terms and durations for your jumbo CD. Just be sure to research the bank you invest with so you know you’re putting your money with a top-rated institution. Also, be sure that you’re comfortable with putting your money in a CD long-term because there are often penalties for withdrawing your money early.

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.

James Ellis
James Ellis |

James Ellis is a writer at MagnifyMoney. You can email James here

Advertiser Disclosure

Earning Interest

The Best High Yield Checking Accounts in 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.

iStock

Checking accounts are like a pair of khakis slacks: You should have at least one, but shopping for them is a chore. You know you need a checking account—preferably one without fees—but most people think it’s not going to yield more than a token amount in interest.

These high yield checking accounts break this tired paradigm, featuring sky-high interest rates that can put even the best savings accounts to shame. In this article, we’ll help you make an informed decision about whether one of these high yield checking accounts are right for you and your financial goals.

How we picked the best high yield checking accounts

We followed a strict approach when selecting these accounts. We used the online rate finder for FDIC- or NCUA-insured rewards checking accounts on DepositAccounts.com, another LendingTree.com-owned site, to list the top 10 high yield checking accounts with the highest rates, assuming a deposit amount of $100.

Credit unions were only included if they allow membership to anyone (such as by making a donation to their chosen charity). Finally, we filtered out any high yield checking accounts that are not available nationwide, or that carry a health rating of below a B.

The Best High Yield Checking Accounts in 2019

Consumers Credit Union (IL) — Free Rewards Checking

  • Minimum amount to open: $0
  • Requirements to earn the high APY: You must complete the following four things each month:
    1. complete at least 12 signature-based debit purchases,
    2. receive at least one direct deposit, ACH debit, or pay one bill through their free bill payment system,
    3. log into your online banking account, and
    4. be signed up for eStatements.
    5. spend $1,000 or more with a Consumers Credit Union Visa credit card each month.
  • Monthly service fee: No monthly service fee.
  • ATM fees: If you meet the requirements to earn the high APY, you won’t pay any ATM fees. However, if you don’t, you’ll have to pay $1.00 for each ATM or debit card withdrawal after your sixth ATM/debit card withdrawal of the month.
  • ATM refunds: You are eligible for refunds on all ATM fees as long as you meet the requirements to earn the highest APY.

LEARN MORE Secured

on Consumers Credit Union (IL)’s secure website

NCUA Insured

La Capitol Federal Credit Union — Choice Checking

  • Minimum amount to open: $50
  • Requirements to earn the high APY: Make at least 25 debit purchases per month.
  • Monthly service fee: $8; waived if you either have a balance of at least $1,000 or make 20 non-ATM debit card transactions each month.
  • ATM fees: None
  • ATM refunds: Up to $25 in out-of-network surcharges (the money the ATM’s owner charges you) per month if you are signed up for eStatements

LEARN MORE Secured

on La Capitol Federal Credit Union’s secure website

NCUA Insured

TAB Bank — Kasasa Cash Checking

  • Minimum amount to open: $0
  • Requirements to earn the high APY: You must have at least 1 direct deposit, ACH payment, or bill pay transaction posted to the account during each billing cycle and at least 15 debit card purchases.
  • Monthly service fee: None
  • ATM fees: None
  • ATM refunds: Up to $15 every month (if you meet the qualifications to earn the highest APY)

LEARN MORE Secured

on TAB Bank’s secure website

Member FDIC

T-Mobile — T-Mobile Money Checking Account

  • Minimum amount to open: $0
  • Requirements to earn the high APY: You must be enrolled in a qualifying T-Mobile wireless plan, be registered for perks with your T-Mobile ID, and have a minimum of $200 in qualifying deposits.
  • Monthly service fee: None
  • ATM fees: None
  • ATM refunds: Up to $10 every month

LEARN MORE Secured

on T-Mobile Money’s secure website

Member FDIC

Orion Federal Credit Union — Premium Checking

  • Minimum amount to open: $0
  • Requirements to earn the high APY: You must make electronic deposits (which can be either a direct deposit, mobile deposit, or an electronic transfer from another financial institution) of at least $500 each month, in addition to making at least eight signature-based debit card transactions each month.
  • Monthly service fee: $5, which is waived if you meet the requirements to earn the highest APY.
  • ATM fees: None for ATM withdrawals in Orion’s network, $1 for non-Orion ATMs
  • ATM refunds: Up to $10 a month for fees charged by non-Orion financial institutions.

LEARN MORE Secured

on Orion Federal Credit Union’s secure website

NCUA Insured

Partner Colorado Credit Union — High-Interest Checking

  • Minimum amount to open: $0
  • Requirements to earn the high APY: You’ll need to do three things each month:
    1. use your debit card to make at least 20 signature-based purchases of $5 or more,
    2. be signed up for eStatements, and
    3. log into your Online or Mobile Banking account.
  • Monthly service fee: $5; waived if you meet the requirements to earn the high APY.
  • ATM fees: None.
  • ATM refunds: All ATM surcharge fees are refunded.

LEARN MORE Secured

on Partner Colorado Credit Union’s secure website

NCUA Insured

One American Bank — Kasasa Cash

  • Minimum amount to open: $50
  • Requirements to earn the high APY: You’ll need to do the following three things for each qualification cycle (be aware: their qualification cycles are not the same thing as a calendar month):
    1. complete at least 12 debit purchases of $5.00 or more,
    2. be enrolled in eStatements, and
    3. log into your Online Banking account.
  • Monthly service fee: No monthly service charges.
  • ATM fees: None
  • ATM refunds: Up to $25 per qualification cycle if you meet the requirements to earn the high APY.

LEARN MORE Secured

on One American Bank’s secure website

Member FDIC

Heritage Bank — eCentive Account

  • Minimum amount to open: $100
  • Requirements to earn the high APY: Each month you’ll need to make 10 or more debit card payments and/or purchases (excluding ATM transactions), have at least one direct deposit or ACH deposit, and receive monthly electronic bank statements.
  • Monthly service fee: None
  • ATM fees: $1 per transaction for ATMs not in the credit union’s network
  • ATM refunds: Up to $25 per qualification cycle if you meet the requirements above.

LEARN MORE Secured

on Heritage Bank’s secure website

Member FDIC

Evansville Teachers Federal Credit Union — Vertical Checking

  • Minimum amount to open: $0
  • Requirements to earn the high APY: You must complete the following things each month:
    1. have at least one direct deposit into your account,
    2. be enrolled in e-statements,
    3. use your debit card to make at least 15 purchases per month, and
    4. log on mobile or online banking once.
  • Monthly service fee: None.
  • ATM fees: None.
  • ATM refunds: Up to $15 of out-of-network ATM fees per month.

LEARN MORE Secured

on Evansville Teachers Federal Credit Union’s secure website

NCUA Insured

Dover Federal Credit Union — Kasasa Cash Account

  • Minimum amount to open: $100
  • Requirements to earn the high APY:  You must make at least 12 debit card purchases in each monthly qualification cycle. In addition, you must be enrolled and agree to receive eStatements and enrolled in online banking, which you must log into at least one time per month.
  • Monthly service fee: None
  • ATM fees: $0s
  • ATM refunds: Up to $25 in refunds of third-party ATM fees per monthly qualification cycle.

LEARN MORE Secured

on Dover Federal Credit Union’s secure website

NCUA Insured

First Financial Credit Union — First Secure Checking

  • Minimum amount to open: $0
  • Requirements to earn the high APY: Make at least 15 debit card purchases a month
  • Monthly service fee: $5 (waived if you maintain a balance of $2,500)
  • ATM fees: None
  • ATM refunds: Up to $10 a month for third-party ATM fees.

LEARN MORE Secured

on First Financial CU (IL)’s secure website

NCUA Insured

Great Lakes Credit Union — Free Checking

  • Minimum amount to open: $0
  • Requirements to earn the high APY: You must complete the following actions each month:
    1. have at least $500 in direct deposits into the account,
    2. make at least 10 signature-based debit card purchases of $100 or more,
    3. be signed up for eStatements, and
    4. use Bill Pay at least once or log into Mobile Banking at least once.
  • Monthly service fee: None
  • ATM fees: $2.00 for non-Great Lakes Credit Union ATMs
  • ATM refunds: $10 per month if you meet the requirements to earn the high APY.

LEARN MORE Secured

on Great Lakes Credit Union’s secure website

NCUA Insured

How are these banks able to offer such a high APY?

Did you notice that most of the institutions offering high yield checking accounts tend to be smaller names that you’ve probably never heard of? It turns out there’s a good reason for that, and it all has to do with the Dodd-Frank Act, a set of sweeping financial regulations passed by Congress in the wake of the Great Recession.

Back when the Dodd-Frank Act was passed in 2010, a tiny legislative nugget called the Durbin Amendment was included in the text. This amendment limited the swipe fees that big banks can charge merchants for each purchase that one of their customers makes using a debit card.

Suddenly, big banks (defined as institutions with at least $10 billion in assets) could only charge half as much per swipe as they had been doing, and swipe fees became a lot more lucrative for smaller banks and credit unions instead.

That’s why so many smaller institutions have strict rules requiring you to use your debit card each month. According to the Federal Reserve, in 2016 smaller banks earned anywhere from 18 to 65 cents for each debit card swipe, compared to a maximum of just 22 cents plus 0.05% of the purchase price for larger banks.

Say, for example, a smaller bank requires you to make 10 debit transactions per month, and earns 65 cents from each transaction. Your bank would then earn $6.50 from your spending that month.

That is where the high interest rates come from. It’s also why the high interest rates are generally capped to smaller balances, so that you don’t earn too much money and negate all the swipe fees that the bank earns.

Is it worth meeting requirements to go after the high APY?

Some of these high yield checking accounts have a lot of requirements.

If you prefer to use debit cards, chances are you’ll be able to easily meet the minimum debit swiping requirements for most of these accounts. On the other hand, if you’re a cash or credit card junkie, you may find yourself frequently worrying at the end of the month about whether or not you’ve met the minimum debit swiping requirements. In this case, a high yield checking account might not be right for you.

Another thing to consider is that many of these banks require you to make a signature-based debit transaction, rather than a PIN-based debit transaction for it to count. Unfortunately, this is slightly less secure than using the PIN-based payment method.

You’ll also need to avoid making a rush of charges at the end of the month to meet the spending requirements. That’s because banks and credit unions will usually only count a charge that has finished posting to your account towards meeting the monthly swiping requirement. It can take a few days for debit swipes to post to your account, so it’s better to get these charges in early to make sure they post to your account in time to count.

The good news is that checking accounts aren’t designed to hold significant amounts of cash. That’s what a savings account is for, and you can still earn pretty good interest rates with a high yield savings account (although still nowhere close to these high yield checking accounts).

If you’re going to keep a smaller deposit in your checking account anyways, why not earn as much as you can from it—especially if you know you’ll have an easy time meeting the requirements?

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.

James Ellis
James Ellis |

James Ellis is a writer at MagnifyMoney. You can email James here

Advertiser Disclosure

Best of, Earning Interest

The Best IRA CD Rates – September 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 September 2019

Term

Institution

APY

Minimum Deposit Amount

3 months

TIAA Bank

1.95%

$5,000

6 months

CommunityWide Federal Credit Union

2.35%

$2,000

12 months

State Department Federal Credit Union

2.63%

$500

18 months

Capital One

1.90%

$0

2 years

MAC Federal Credit Union

2.80%

$1,000

3 years

Hughes Federal Credit Union

3.10%

$1,000

4 years

State Department Federal Credit Union

2.93%

$500

5 years

State Department Federal Credit Union

3.19%

$500

6+ years

Evansville Teachers FCU

2.50%

$1,000

 

Best 3-month IRA CD — TIAA Bank Yield Pledge IRA (Traditional, Roth)

3 Month Yield Pledge IRA from TIAA Bank
TIAA Bank offers customers a 3-month yield pledge CD that’s also eligible for IRA protection. Savers can expect an APY of 1.95%, with a minimum deposit of $5,000.

LEARN MORE Secured

on TIAA Bank’s secure website

Member FDIC

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 2.35% APY for deposits of $1,000 and over. That translates into earnings of $11.71 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

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 2.63% 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 2.42%. If you deposited $1,000, that would earn you $26.30 by the time the account matured.

LEARN MORE Secured

on State Department Federal Credit Union’s secure website

NCUA Insured

Best 18-month IRA CD — Capital One 360 IRA CD (Traditional, Roth, CESA)

18 Month 360 IRA from Capital OneCapital One’s 18-month 360 IRA CD can earn you a competitive rate of 1.90% APY. There’s no minimum deposit to open a CD or start earning interest, although the penalty for making an early withdrawal is six months of interest — no matter when you redeem the account prior to maturity. As the online banking side of Capital One, Capital One 360 tends to offer higher rates than the bank’s conventional CDs.

LEARN MORE Secured

on Capital One’s secure website

Member FDIC

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

24 Month IRA from MAC Federal Credit Union Headquartered in Fairbanks, AK, MAC Federal Credit Union’s 2-year IRA share certificate earns 2.80% APY with a minimum deposit of $1,000. This IRA share certificate is available for a Traditional IRA or a Roth IRA. Membership in this 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.

LEARN MORE Secured

on MAC Federal Credit Union’s secure website

NCUA Insured

Best 3-year IRA CD — Hughes Federal Credit Union (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.

LEARN MORE Secured

on Hughes Federal Credit Union’s secure website

NCUA Insured

Best 4-year IRA CD — State Department Federal Credit Union (Traditional, Roth)

48 Month IRA Certificate from State Department Federal Credit Union State Department FCU continues to dominate the longer-term IRA CDs with its 48-month CD, boasting a rate of 2.93% APY. As with all State

LEARN MORE Secured

on State Department Federal 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.

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