Cassidy HortonPersonal Finance Reviewer and Writer
Cassidy Horton is a finance writer covering banking, life insurance and business loans. She has worked with top finance brands including NerdWallet, MarketWatch and Consumer Affairs. Cassidy first became interested in personal finance after paying off $18,000 in debt within 10 months of graduating college. She later went on to triple her salary in two years by ditching her 8-to-5 job to write for a living.
Cassidy Horton
Cassidy HortonPersonal Finance Reviewer and Writer
Cassidy Horton is a finance writer covering banking, life insurance and business loans. She has worked with top finance brands including NerdWallet, MarketWatch and Consumer Affairs. Cassidy first became interested in personal finance after paying off $18,000 in debt within 10 months of graduating college. She later went on to triple her salary in two years by ditching her 8-to-5 job to write for a living.
Personal Finance Reviewer and Writer
Michael BenningerLead Editor, Banking
With more than 15 years of experience crafting content about all aspects of personal finance, Michael Benninger knows how to identify smart moves for your money. His work has been published by Intuit, Insider and the Los Angeles Times, and he's been quoted by The Street and Yahoo Finance among other news outlets. Prior to his role at Forbes Advisor, Michael worked as a banking writer for Finder.com, where he authored in-depth reviews of hundreds of banking products.
Fact Checked
Michael Benninger
Michael BenningerLead Editor, Banking
With more than 15 years of experience crafting content about all aspects of personal finance, Michael Benninger knows how to identify smart moves for your money. His work has been published by Intuit, Insider and the Los Angeles Times, and he's been quoted by The Street and Yahoo Finance among other news outlets. Prior to his role at Forbes Advisor, Michael worked as a banking writer for Finder.com, where he authored in-depth reviews of hundreds of banking products.
Lead Editor, Banking
Fact Checked
Updated: Jun 17, 2024, 1:11pm
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
An IRA (individual retirement account) is a wise investment option for those looking to save for retirement. But did you know that you can invest your IRA contributions into certificates of deposit (CDs) just as you would stocks, bonds or mutual funds? The best IRA CD rates offer guaranteed returns, making them an attractive option for savers who want a low-risk and steady way to grow their savings.
Why you can trust Forbes Advisor
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Show Summary
- CD Promotions
- Best IRA CD Rates 2024
- Summary: Best IRA CD Rates
- Methodology
- What Are Current IRA CD Rates?
- What Is An IRA CD?
- How Does an IRA CD Work?
- How To Find the Highest IRA CD Rates
- Pros and Cons of an IRA CD
- Who Is an IRA CD Best For?
- How To Rollover an IRA CD to an IRA
- What Is the Difference Between a CD and an IRA?
- Are IRA CDs a Good Investment?
- Bottom Line
- Banks We Monitor
- Frequently Asked Questions (FAQs)
- Next Up In CDs
FEATURED PARTNER OFFER
Discover® 9-Month Certificate of Deposit term
Annual Percentage Yield
4.25%
Minimum Deposit Requirement
$2,500
On Discover's Website
4.25%
$2,500
Best IRA CD Rates 2024
If you’re looking for the best IRA CD rates in 2024, we’ve got you covered. Here are the top five providers of the best IRA CDs based on our methodology.
Annual percentage yields (APYs) and account details are accurate as of June 17, 2024.
Connexus Credit Union IRA Certificates
5.0
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Annual Percentage Yield
3.41% to 4.91%
Minimum Deposit Requirement
$5,000
Interest Compounding Frequency
Quarterly
Learn More
Read Our Full Review
3.41% to 4.91%
$5,000
Quarterly
Editor's Take
Wisconsin-based Connexus Credit Union boasts some of the best IRA CD rates in 2024, with the highest rates being on its 12-month IRA CD.
You’ll need a minimum $5,000 opening deposit to lock in these rates. You’ll also need to be a Connexus member, but luckily anyone can join with a $5 donation (see Details for more).
Read our full Connexus Credit Union review.
Pros & Cons
- High APYs
- Several term options
- Jumbo IRA certificates available
- Can’t open online
- Membership is required
- High minimum opening deposit
Details
Anyone in the U.S. can join Connexus Credit Union when you make a one-time $5 donation to the Connexus Association, which is dedicated to providing financial literacy education.
Here are Connexus Credit Union’s current IRA CD rates and terms:
- 12 months: 4.91%
- 24 months: 4.53%
- 36 months: 4.11%
- 48 months: 3.81%
- 60 months: 3.41%
First National Bank of America IRA Certificates of Deposit
4.8
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Annual Percentage Yield
3.05% to 5.05%
Minimum Deposit Requirement
$1,000
Interest Compounding Frequency
Quarterly
Learn More
Read Our Full Review
3.05% to 5.05%
$1,000
Quarterly
Editor's Take
First National Bank of America is a Michigan-based institution with IRA CD rates that rival even the best online banks. But you must open a Traditional or Roth IRA CD at a local branch, and First National Bank of America only has locations in East Lansing, Grand Rapids and Traverse City. And if you live in one of those areas, you can open an IRA CD of any monthly duration between one and 60 months rather than being limited to listed terms.
Read our full First National Bank of America review.
Pros & Cons
- High APYs
- Reasonable minimum opening deposit
- Must open at a branch location
- Only annual terms are available unless you live in Michigan
Details
Here are First National Bank of America’s current national rates for traditional and Roth IRA CDs:
- 12 months: 5.05%
- 24 months: 4.75%
- 36 months: 4.60%
- 48 months: 4.50%
- 60 months: 4.50%
- 72 months: 4.30%
- 84 months: 4.20%
Discover® Roth/Traditional IRA Certificates of Deposit
4.5
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Minimum Deposit Requirement
$2,500
Interest Compounding Frequency
Daily
Learn More
Read Our Full Review
2.00% to 4.70%
$2,500
Daily
Editor's Take
Discover is an online bank that consistently produces some of the best bank accounts with the lowest fees and highest rates—and its Traditional and Roth IRA CDs are no different.
Rates start out at 2.00% for a 3-month IRA CD and go up to 4.70% for 12-month IRA CDs.
Another major bonus is that Discover is one of the only banks that lets you open an IRA CD online without having to visit a branch. Simply start the application process online, and Discover will mail you the paperwork to sign.
Read our full Discover Bank review.
Pros & Cons
- High APYs
- Can open an account online
- Terms range from 3 months to 10 years
- Minimum opening deposit is on the high side
- Short-term CD rates aren’t as competitive
Details
Here are Discover’s current IRA CD rates:
- 3 months: 2.00%
- 6 months: 4.25%
- 9 months: 4.25%
- 12 months: 4.70%
- 18 months: 4.40%
- 24 months: 4.00%
- 30 months: 3.75%
- 36 months: 3.75%
- 48 months: 3.75%
- 60 months: 3.75%
- 84 months: 3.75%
- 120 months: 3.75%
NASA Federal Credit Union IRA Certificate of Deposit
4.5
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Annual Percentage Yield
4.00% to 5.35%
Minimum Deposit Requirement
$50 to $10,000
Interest Compounding Frequency
Monthly
4.00% to 5.35%
$50 to $10,000
Monthly
Editor's Take
NASA Federal Credit Union stands out because it has competitive IRA CD rates that top out at 5.35%. Plus, it offers several uncommon types and terms of IRA CDs that you won’t find at other institutions on our list.
For instance, NASA FCU has a special bump-rate IRA CD that lets you increase your rate to a higher rate once during the CD’s term. The credit union also offers an Early Savers IRA CD for individuals under the age of 24 and an add-on IRA CD if you want to continue contributing to your account over time.
NASA Federal Credit Union opens membership to everyone nationwide—even if you’re not affiliated with the space program.
Pros & Cons
- High APYs
- Can open an account online
- Several specialized IRA CD options
- Membership is required
- Some CDs have high minimum opening deposits
Details
If you don’t have any affiliation with NASA, this credit union will cover your first-year membership to the National Space Society (NSS), so you can join anyway.
Here are NASA Federal Credit Union’s current rates for standard IRA CDs:
- 6 months: 4.90%; $1,000 minimum deposit
- 9 months: 5.35%; $10,000 minimum deposit
- 12 months: 4.50%; $1,000 minimum deposit
- 15 months: 5.25%; $10,000 minimum deposit
- 24 months: 4.35%; $1,000 minimum deposit
- 36 months: 4.25%; $1,000 minimum deposit
- 48 months: 4.10%; $1,000 minimum deposit
- 49 months: 4.55%; $10,000 minimum deposit
- 60 months: 4.00%; $1,000 minimum deposit
In addition, NASA Federal Credit Union has these special IRA CDs:
- 12 month Early Savers: 4.50%; $50 minimum deposit
- 12 month Add-On: 4.40%; $250 minimum deposit
- 24 month Bump Rate: 4.25%; $1,000 minimum deposit
- 36 month Bump Rate: 4.15%; $1,000 minimum deposit
Bethpage Federal Credit Union IRA Certificate of Deposit
4.5
Our ratings are calculated based on fees, rates, rewards and other category-specific attributes. All ratings are determined solely by our editorial team.
Annual Percentage Yield
2.25% to 5.00%
Minimum Deposit Requirement
$50
Interest Compounding Frequency
Monthly
Learn More
Read Our Full Review
2.25% to 5.00%
$50
Monthly
Editor's Take
Not only is Bethpage Federal Credit Union one of the best credit unions, but it’s also one of the best institutions for IRA CD rates.
Even its 3-month IRA CD earns a competitive 2.25% APY, but you’ll get the most bang for your buck if you open an 11-month CD. It has a 5.00% APY, which is higher than other Bethpage IRA CDs with longer terms.
Read our full Bethpage Federal Credit Union review.
Pros & Cons
- High APYs
- Low opening deposits
- Bump-up CD option
- Membership is required
- Must open a savings account to establish membership
Details
Membership is open to anyone who opens a Bethpage Federal Credit Union savings account with a minimum $5 deposit.
Here are Bethpage’s current IRA CD rates:
- 3 months: 2.25%
- 6 months: 4.00%
- 11 months: 5.00%
- 12 months: 4.00%
- 18 months: 3.00%
- 24 months: 3.00%
- 30 months: 3.00%
- 36 months: 4.00%
- 48 months: 3.00%
- 60 months: 3.00%
- 39-month “Bump Up” IRA certificate: 3.00%
Summary: Best IRA CD Rates
| Company | Company - Logo | Forbes Advisor Rating | Forbes Advisor Rating | CD APY | Minimum Deposit Requirement | Compounding Frequency | Learn More CTA text | Learn more CTA below text | Learn More |
|---|---|---|---|---|---|---|---|---|---|
| Connexus Credit Union |  | 5.0 |  | 3.41% to 4.91% | $5,000 | Quarterly | Learn More | Read Our Full Review | |
| First National Bank of America |  | 4.8 | | 3.05% to 5.05% | $1,000 | Quarterly | Learn More | Read Our Full Review | |
| Discover® Roth/Traditional IRA Certificates of Deposit |  | 4.5 |  | 2.00% to 4.70% | $2,500 | Daily | Learn More | Read Our Full Review | |
| NASA Federal Credit Union IRA Certificate of Deposit |  | 4.5 | | 4.00% to 5.35% | $50 to $10,000 | Monthly | Learn More | ||
| Bethpage Federal Credit Union IRA Certificate of Deposit |  | 4.5 | | 2.25% to 5.00% | $50 | Monthly | Learn More | Read Our Full Review |
Methodology
To create our list of the best IRA CD rates, Forbes Advisor analyzed 341 CDs accounts across 134 financial institutions, including a mix of traditional brick-and-mortar banks, online banks and credit unions. We ranked each institution on 10 data points within the categories of APY, minimums, compounding frequency, customer experience, digital experience, available terms and overall availability.
The following weights were assigned to each category for the star rating:
- APY: 50%
- Customer and digital experience: 20%
- Minimum deposit: 12.5%
- Compound interest schedule: 7.5%
- Availability: 5%
- Available terms: 5%
To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Reviews Banks.
What Are Current IRA CD Rates?
Current IRA CD rates range from less than 0.50% APY to 5.00% APY or higher, but this is subject to change. CD rates have been increasing overall and may continue to rise in the near future. Some of the highest IRA CD rates can be found at online banks and credit unions.
What Is An IRA CD?
An IRA CD is a certificate of deposit housed within an individual retirement account (IRA). There are many pros and cons of IRA CDs, but the biggest benefit is that your account is federally insured for up to $250,000 and earns a fixed interest rate over time. So, rather than dealing with stock market fluctuations, money invested in your IRA CD is guaranteed and protected from potential losses.
How Does an IRA CD Work?
IRA CDs work by combining the features of an IRA with some of the benefits of a CD. The two main types are traditional IRA CDs and Roth IRA CDs. Each option provides different tax advantages.
- Traditional IRA CDs: Contributions may be tax-deductible and qualified withdrawals are taxed as ordinary income.
- Roth IRA CDs: Contributions are made with after-tax income and qualified withdrawals are tax-free.
When you open an IRA CD, you will deposit new funds to an IRA or roll funds over from another IRA. Traditional and Roth IRA CDs opened with new funds are subject to the same annual contribution limits as regular IRAs. For 2023, the maximum annual contribution you can make to a traditional or Roth IRA is $6,500. You can contribute an additional $1,000 if you’re 50 or older.
How To Find the Highest IRA CD Rates
To find the highest IRA CD rates, start with online banks and credit unions. These institutions tend to offer the best rates and features. See the options in this list for some of the top-ranked IRA CDs from our analysis.
Consider how much you’d like to deposit and what term length you’re comfortable with to find the best interest rates you can qualify for. You should be able to easily meet minimum deposit requirements and feel confident you will not need the money until the term is up. Look for daily compounding schedules to earn the highest returns.
“A high interest rate can sometimes come with strings attached,” says Jeff Rose, a certified financial planner and former CEO and founder at Alliance Wealth Management, LLC. “Some institutions charge as much as six months’ worth of interest for early withdrawals on a five-year CD. So, always weigh the potential earnings against the flexibility and terms of the account.”
Pros and Cons of an IRA CD
IRA CDs can help you reach your retirement savings goals, but they aren’t right for everyone. Here are some of the main pros and cons of an IRA CD to consider.
Pros
- Safe and guaranteed returns
- May offer better rates than savings accounts
- Tax advantages on contributions or withdrawals
- Can provide steady income in interest earnings
Cons
- Locks up your money
- May offer lower returns than riskier investments
- Contribution limits may apply
IRA CDs are a low-risk option for short-term retirement saving, but they’re not ideal for long-term investing. To learn more, check out The Pros And Cons Of IRA CDs.
Who Is an IRA CD Best For?
An IRA CD may be best for people nearing retirement age. If you will reach your retirement goals in the next couple of years and want a safe place to earn interest until then, IRA CDs are a smart investment. You might decide to move some funds from another retirement or investing account into an IRA CD to guarantee you won’t lose money.
You might also consider an IRA CD if you want to invest more conservatively for retirement or have a lower risk tolerance. These accounts can help you diversify your portfolio. Even with the most competitive rates, IRA CDs are not likely to outperform the rest of your investments in the long run. However, they can offer secure earnings while more growth-oriented assets cannot.
How To Rollover an IRA CD to an IRA
After your IRA CD matures, you may choose to roll it into a regular IRA. This process may sound complicated, but it’s actually quite simple if you take it one step at a time.
- Decide if you’ll open a traditional or Roth IRA.
- Choose which financial institution you’ll open an account with and fill out any necessary paperwork.
- Ask your current financial institution to transfer or “roll over” the funds from your existing CD into the new account.
What Is the Difference Between a CD and an IRA?
CDs and IRAs serve very different purposes.
A certificate of deposit is a low-risk savings account offered by banks, credit unions and other financial institutions. CDs have pre-determined maturity dates with fixed interest rates that generally cannot change throughout your term. The advantage is that you know how long your money will be locked up and how much you’ll earn over time.
An individual retirement account is an investment account with unique tax advantages designed to help you save for retirement. Unlike a CD, which has a fixed return, your IRA can be invested in several different assets with different risks and rates of return, including stocks, bonds or mutual funds.
Ultimately, the choice between a CD or IRA depends on your situation and goals. If you need quick access to your money, a CD might be best for you. But if you’re looking to contribute regularly toward your future retirement, then an IRA may be a better bet.
Pro Tip
If you choose an IRA CD, heed this advice from Scott Lieberman of Touchdown Money: “You should only be investing money you think you won’t need until the end of the CD term and not before age 59 ½. At that age, you can withdraw from your IRA without having to pay a 10% penalty.”
Are IRA CDs a Good Investment?
An IRA CD can be a good investment if it fits your financial goals and risk tolerance. IRA CDs help you grow your retirement savings in a predictable way because they have guaranteed returns. But they typically offer lower interest rates compared to other retirement accounts and investment options like stocks or mutual funds.
If safety and capital preservation are important to you, putting part of your retirement savings in an IRA CD could be a wise choice. But if you’re willing to take on more risk in exchange for potentially higher returns, you may want to explore other investment options within your IRA.
For example, diversifying your retirement savings with stocks, bonds and mutual funds can help you potentially achieve better long-term growth. Consider talking to a financial advisor if you need help deciding whether an IRA CD is a good investment for you.
Find The Best CD Rates Of 2024
Learn More
Bottom Line
Investing in an IRA CD can be a great way to save for retirement if you’re worried about stock market fluctuations or want a locked-in, guaranteed return. If you’re not sure where to start your search, the five financial institutions on this list have the best IRA CD rates for 2024.
Banks We Monitor
These financial institutions were included in our research for the best CD rates: ableBanking, Affinity Federal Credit Union, Ally Bank, American Express, Axos Bank, Apple Federal Credit Union, Bank of America, Bank5 Connect, BankDirect, BankPurely, BankUnitedDirect, Barclays, Bethpage Federal Credit Union, Bread Savings (formerly Comenity Direct), BrioDirect Banking, Capital One, Charles Schwab Bank, Chase, Chevron Federal Credit Union, CIT Bank, Citibank, Citizens Access, Colorado Federal Savings Bank, Comerica, CommunityWide Federal Credit Union, Connexus Credit Union, Consumers Credit Union, Credit Union of Denver, Discover, Dollar Savings Direct, EmigrantDirect, Financial Partners Credit Union, Financial Resources Federal Credit Union, First National Bank of America, Georgia’s Own Credit Union, Golden1 Credit Union, Greenwood Credit Union, HSBC Direct, Hughes Federal Credit Union, Ideal Credit Union, iGoBanking, Investors eAccess, Keybank, Kinecta Federal Credit Union, Limelight, Live Oak Bank, MAC Federal Credit Union, Marcus by Goldman Sachs, Michigan State University Federal Credit Union, My eBanc, MySavingsDirect, Navy Federal Credit Union, nbkc Bank, Northern Bank Direct, Northpointe Bank, Nuvision Federal Credit Union, Pacific National Bank, Pen Air Federal Credit Union, PenFed, PNC Bank, Popular Direct, Purepoint Financial, Quontic, Quorum Federal Credit Union, Radius Bank, Rising Bank, SalemFiveDirect, Sallie Mae Bank, Spectrum Federal Credit Union, State Bank of Texas, State Department Federal Credit Union, Superior Choice Credit Union, Synchrony Bank, TAB Bank, TD Bank, EverBank, TotalDirect Bank, U.S. Bank, USAA, USAlliance Federal Credit Union, Vio Bank, Virtual Bank, Wells Fargo and Truist.
Frequently Asked Questions (FAQs)
Are IRA CDs FDIC-insured?
Yes, if you open an IRA CD with an FDIC-insured financial institution, your account will be FDIC insured too. Likewise, if you open one with a credit union, it will be NCUA insured. Both types of insurance help protect your IRA CD funds up to the specified limits if the bank or credit union fails.
How do you transfer an IRA CD from one bank to another?
You can transfer an IRA CD from one bank to another by waiting until the original CD matures, withdrawing your funds and depositing them into a new CD at a different bank. If you withdraw CD funds before maturity, you will be subject to early withdrawal penalty fees. IRA transfers must be completed within 60 days. Otherwise, the IRS can treat the withdrawal of your principal and interest as a taxable distribution.
What do you do when an IRA CD matures?
When an IRA CD matures, you will have a short amount of time to make changes or withdrawals without penalty. This window, referred to as a grace period, starts after the maturity date and is usually 10 days.
Many banks renew CDs automatically for the same term as the original account at whatever interest rate is currently available. Your CD might earn more or less than when you opened it after it is renewed.
Can I withdraw from my IRA CD without penalty?
Generally speaking, you can’t withdraw early from an IRA CD without penalty. If you make a withdrawal before your CD’s term is up, you will pay early withdrawal penalties to the bank equivalent to a portion of your interest. You may also pay a tax penalty to the IRS for withdrawing from a traditional IRA before you reach age 59 ½.
Is an IRA CD tax-deductible?
An IRA CD can be tax-deductible, but it depends on the type of IRA you choose. Banks typically offer both traditional and Roth IRA CDs. Contributions to a traditional IRA CD may be tax-deductible, potentially lowering your taxable income in the year you make the contribution. Roth IRA CD contributions are not tax-deductible, but qualified withdrawals from a Roth IRA CD can be tax-free in retirement.
Can you open an IRA CD at any age?
There is no minimum age to open an IRA, but banks typically require you to be at least 18 to open a CD account. If you’re under 18, you may be able to set up a traditional or Roth IRA with the help of a parent or guardian, assuming that you have earned income. You’ll need to wait until you’re 18 or older to set up an IRA CD.
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