IRA Rates Are Sometimes Higher Than Regular CDs For Same Term

kcfield
  |     |   188 posts since 2012

While most banks and credit unions have the same interest rate for regular CDs and IRAs of the same term; some institutions pay a higher rate for IRAs. For example, when I do an search on DA for 5 year CDs (entering my home location of Michigan and checking the box for all Credit Union options): there are no regular CDs available that have a five year rate of more than 1.35%. However, US Postal Service FCU has a nationally available 5 year IRA rate of 1.50%. So, remember (if IRA is an option for you) to search BOTH the CD AND IRA rates for your preferred term.



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