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Do IRA Cds Have A Saving/Acc. To Retire To

Ratesaver
  |     |   187 posts since 2013

My IRA cd is coming due next month and if I am not satisfied with the rate for rollover will it automaticallly go to this acc. IRA savings or did i have to ask them to do this

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racecar
  |     |   616 posts since 2014
As others posted, you need to create an IRA Savings Acct (or Roth IRA Savings if it's Roth fund -- make sure it's the same type as your CD) as a place for the funds to go when your CD matures.

If you want to transfer some or all of the funds to another place (where perhaps rates might be higher) they can usually only do it if those funds are in an IRA (or Roth IRA) SAVINGS account, not from a maturing CD account.

And yes, it's important to do it BEFORE the CD matures -- as soon as possible, if yours is maturing next month, because sometimes it takes time.

Some places will created that IRA (or Roth IRA) savings account when you open your IRA/Roth IRA CD, but most won't. So unless you want your IRA/Roth IRA CD endlessly renewing you need to create a place to dump those funds. From there you can decide what to do (stay with the same place, take some funds out if you're old enough, have the funds sit in the IRA/Roth IRA Savings Account for another institution to request the funds from or from your current place to send the funds from, etc).

This is a good post because many people forget to do this. Wherever you have an IRA CD at, ALWAYS set up a Savings Account of the same type as well (Traditional IRA or Roth IRA or both if you have both types at that place) as a place for the funds to "transfer to" and pause when the CD matures, then you have all your choices what to do with those funds.
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Ratesaver
  |     |   187 posts since 2013
Thanks for the answer as when i opened the IRA 7yrs ago I was in person and the person opening it said she need to open a savings account and i thought it was ira however all these yrs i never thought it wasn't until I looked closely recently and it says savings and not ira saving with 5dollars it it Wo
W.... I am going down to this Andrews fcu tomorrow and fix it I hope ... Next month it is coming due
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bobert456
  |     |   187 posts since 2022
depends on the institution.
1) Many have them on auto-renew.... so you must contact them to change it to NOT renew
2) some will automatically create the IRA share (savings) acct for you, but other require you to ask for it and fill out more paperwork.

Are we having fun yet ?
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Ratesaver
  |     |   187 posts since 2013
Update: I made a visit to Andrews branch the other day and was able to cashout my old IRA cd with the penalty waved with one month to go... Very prefessional clerks were very helpful and rolled over or should I say opened new Ira. acc. with 7yr 4.35 apy. This time I was able to open IRA savings acc. to upon expiration my IRA will be deposited to after 7yrs. The transaction went very smoothly
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