Best IRA CD Rates 2024

Written by C. Saint-Denys | Edited by Ali Cybulski | Published on 4/19/2024

 

An IRA CD is an individual retirement account (IRA) that allows you to invest your money in certificates of deposit (CD). This savings vehicle combines some of the benefits of an IRA and a CD. An account can provide the steady returns of a CD and the tax advantages of an IRA, for example.

IRA CDs offer stability and predictability, but other riskier investment options can deliver better long-term growth. Check the best IRA CD rates to figure out whether it makes sense to add IRA CDs to your retirement savings strategy.

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What is an IRA CD?

An IRA CD is held in an individual retirement account. IRA CDs and traditional CDs typically share similar features: fixed annual percentage yield (APY), set term length, minimum opening deposit and early withdrawal penalty.

Like a regular CD, an IRA CD is an interest-bearing account, but it also offers potential tax-deductible or tax-deferred options on funds set aside for retirement. The type of IRA CD you choose will determine whether your contributions may be tax-deductible and will grow either tax-deferred or tax-free.

A traditional IRA, for example, lets your earnings grow tax-deferred until withdrawal, while a Roth IRA allows your earnings to grow tax-free. Contributions to a traditional IRA are tax-deductible, but you’ll pay income taxes on withdrawals when you retire. The opposite is true of Roth IRA contributions.

Financial institutions typically offer four types of IRA CDs, including traditional, Roth, Simplified Employee Pension (SEP) and Coverdell education savings account (CESA).

You can open IRA CDs at brick-and-mortar or online banks, credit unions, brokerage firms or mutual fund companies.

You can invest in an IRA CD by rolling over funds from another IRA or depositing money to open a new account. Funding with new money is regulated by the same annual contribution limits for regular IRAs: For 2024, those younger than 50 are limited to $7,000, while those older than 50 have a limit of $8,000.

Best IRA CD rates

Rate shopping is crucial to determine whether an IRA CD could make sense for your financial situation. We’ve made this easier for you by compiling lists of the Best IRA CD rates searchable by term, or the amount of time you agree to leave your money in the account.

Simply click on the drop-down menu at the top right of our Best IRA CD Rates table and choose from terms of three months to six-plus years to start exploring top rates. You can filter your results by factors such as region, deposit amount and online bank.

View rates for credit unions only by checking the Credit Unions box toward the top of the page. You can even search for types of credit unions if you want to get that specific.

Consumers may find some of the best rates with online banks because they tend to have lower overhead costs than brick-and-mortar banks. Credit unions also tend to offer competitive CD rates.

Compare the best IRA CD rates

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147 Results

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147 Results

Nationwide Only
5.30%
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,325
Fort Liberty FCU12 Month Jumbo IRA Term Share Certificate (Traditional, Roth, CESA)5 Reviews
5.30%
MIN TO
EARN
MIN TO EARN:$25k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,325
Home Savings Bank12 Month Internet Only IRA (Traditional, Roth)1 Review
5.25%
MIN TO
EARN
MIN TO EARN:$5k

MAX
MAX:$250k
EST.
EARN 🛈
EST. EARN:$1,312
Utah First FCU12 Month IRA (Traditional, Roth, CESA)10 Reviews
5.25%
MIN TO
EARN
MIN TO EARN:$2k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,312
Farmers Insurance FCU12 Month Flex - IRA Certificate Special - New Money (Traditional, Roth, CESA, SEP)13 Reviews
5.25%
MIN TO
EARN
MIN TO EARN:$1k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,312
Mountain America Credit Union12 Month IRA Special (Traditional, Roth)52 Reviews
5.25%
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,312
State Department FCU12 Month IRA Certificate (Traditional, Roth)15 Reviews
5.20%
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,300
Alliant Credit Union12 Month IRA (Traditional, Roth, SEP)85 Reviews
5.15%
MIN TO
EARN
MIN TO EARN:$1k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,288
Communitywide FCU12 Month IRA (Traditional, Roth)12 Reviews
5.15%
MIN TO
EARN
MIN TO EARN:$1k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,288
TAB Bank12 Month IRA CD (Traditional, Roth, CESA)45 Reviews
5.15%
MIN TO
EARN
MIN TO EARN:$1k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,288
USALLIANCE Financial12 Month IRA Certificate Special (Traditional, Roth, CESA)77 Reviews
5.15%
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,288
GTE Financial12 Month IRA (Traditional, Roth)66 Reviews
5.12%
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,280
First Flight FCU12 Month IRA Certificate (Traditional, Roth, CESA)1 Review
5.12%*
MIN TO
EARN
MIN TO EARN:$10k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,280
Summit Credit Union (WI)13 Month IRA Special (Traditional, Roth, CESA)11 Reviews
5.10%
MIN TO
EARN
MIN TO EARN:$5k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,386
Sun East FCU11 Month High Yield IRA Special (Traditional, Roth)16 Reviews
5.08%
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,163
U S Postal Service FCU1 Year IRA (Traditional, Roth, CESA)9 Reviews
5.05%
MIN TO
EARN
MIN TO EARN:$250

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,262
Andrews FCU12 Month Jumbo IRA Certificate (Traditional, Roth, CESA)74 Reviews
5.05%
MIN TO
EARN
MIN TO EARN:$10k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,262
Liberty FCU10 Month Fixed IRA (Traditional, Roth, CESA)17 Reviews
5.05%
MIN TO
EARN
MIN TO EARN:$1k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,051
Lafayette FCU1 Year Fixed CESA IRA36 Reviews
5.04%
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,260
1st Source Bank11 Month IRA Special (Traditional, Roth, CESA)3 Reviews
5.04%
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,154
Synchrony Bank14 Month IRA CD (Traditional, Roth)457 Reviews
5.00%
MIN TO
EARN
MIN TO EARN:$0

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,468
St. Mary's Bank14 Month IRA Promo4 Reviews
5.00%
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,468
Consumers Credit Union (IL)13 Month IRA Special (Traditional, Roth, CESA, SEP)107 Reviews
5.00%
MIN TO
EARN
MIN TO EARN:$250

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,359
Credit Union Of New Jersey13 Month IRA Special - New Money (Traditional, Roth, CESA)8 Reviews
5.00%*
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:$500k
EST.
EARN 🛈
EST. EARN:$1,359
Securityplus FCU1 Year IRA (Traditional, Roth)10 Reviews
5.00%
MIN TO
EARN
MIN TO EARN:$1k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,250
Superior Choice Credit Union1 Year IRA (Traditional, Roth)16 Reviews
5.00%*
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,250
Northwest FCU1 Year IRA Certificate (Traditional, Roth, CESA, SEP)18 Reviews
5.00%*
MIN TO
EARN
MIN TO EARN:$1k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,250
INOVA FCU12 Month IRA (Traditional, Roth, CESA)42 Reviews
5.00%
MIN TO
EARN
MIN TO EARN:$200

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,250
Service Credit Union12 Month IRA Certificate (Traditional, Roth)30 Reviews
5.00%
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,250
Pennsylvania State Employees Credit Union12 Month IRA Special (Traditional, Roth, CESA)31 Reviews
5.00%
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,250
American Heritage FCU12 Month IRA Certificate Special (Traditional, Roth, CESA)15 Reviews
5.00%
MIN TO
EARN
MIN TO EARN:$1k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,250
Salem Five12 Month IRA Special (Traditional, Roth)16 Reviews
5.00%
MIN TO
EARN
MIN TO EARN:$2k

MAX
MAX:$500k
EST.
EARN 🛈
EST. EARN:$1,250
Bethpage FCU11 Month IRA (Traditional, Roth)11 Reviews
5.00%
MIN TO
EARN
MIN TO EARN:$50

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,145
Quorum FCU11 Month IRA Term Savings - New Money (Traditional, Roth)22 Reviews
5.00%
MIN TO
EARN
MIN TO EARN:$1k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,145
Credit Human6-11 Month IRA (Traditional, Roth, CESA)28 Reviews
5.00%
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,145
Premier America Credit Union11 Month IRA Special - New Money (Traditional, Roth)13 Reviews
5.00%*
MIN TO
EARN
MIN TO EARN:$1k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,145
Technology Credit Union10 Month IRA Certificate (Traditional, Roth)11 Reviews
5.00%
MIN TO
EARN
MIN TO EARN:$1k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,040
CoVantage Credit Union10 Month IRA Special (Traditional, Roth, CESA)4 Reviews
5.00%
MIN TO
EARN
MIN TO EARN:$1k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,040
Genisys Credit Union13 Month IRA Certificate Special (Traditional, Roth, CESA)23 Reviews
4.98%
MIN TO
EARN
MIN TO EARN:$500

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,354
Princeton FCU13 Month IRA
4.97%
MIN TO
EARN
MIN TO EARN:$1k

MAX
MAX:-
EST.
EARN 🛈
EST. EARN:$1,351

Displaying 1-40 of 147 Results


Pros and cons of IRA CDs

Like many financial products, IRA CDs come with a combination of potential advantages and downsides, all of which should be taken into account before committing your funds.

Pros:

  • Fixed interest rates that provide a guaranteed return
  • Low risk compared with other investments
  • Higher interest rates than savings accounts
  • Tax advantages depending on the type of IRA CD
  • Deposits protected at federally insured banks and credit unions up to $250,000

Cons:

  • Lower returns compared with stocks and bonds
  • Lack of access to your funds for emergencies or other investments
  • IRA contribution limits
  • Potential early withdrawal penalties
  • Fixed interest rates may be outpaced by inflation

Who is an IRA CD best for?

An IRA CD is geared toward investors nearing retirement or individuals wanting a less risky place to put their money. The trade-off for stable and reliable returns can be more modest growth.

A CD lets you lock in your interest rate and plan your returns over months and years, which can be helpful when planning retirement expenses. If you are decades away from retirement, an IRA CD may not offer the growth you seek.

However, you’ll get guaranteed returns on your principal and federal backing with IRA CDs. An IRA CD can also be useful in diversifying a retirement portfolio and maximizing potential tax benefits, including deductions on contributions.

Shop around for the best rates before you invest. Online banks tend to offer higher rates than brick-and-mortar banks because they have lower overhead costs.

Are IRA CDs a good investment?

Whether an IRA CD is a good investment will depend on your financial goals and your risk tolerance.

First, make sure you won’t need access to your money before you lock it up in a CD. Then, consider your returns. You may be giving up some growth for safety, but this could serve you well if you are close to retirement or prefer a conservative investment strategy.

A few scenarios, in particular, could be optimal for opening an IRA CD:

  • You do not have a 401(k) or IRA through an employer.
  • You want to enhance your employer’s 401(k) or IRA.
  • You are self-employed.
  • You want to reduce taxable income by taking advantage of an IRA CD’s tax-deferred benefits.

Frequently asked questions

What is the difference between a CD and an IRA?

A CD is a type of savings account, and an IRA is a tax-advantaged personal savings plan. IRAs are often used as long-term investment tools for retirement income, while CDs are vehicles for short-term growth.

Is there an early withdrawal penalty for IRA CDs?

IRA CDs, like standard CDs, are subject to an early withdrawal penalty, which can vary by financial institution. You may also face a 10% IRS penalty on the withdrawal if you’re not at least 59 1/2.

Can you transfer an IRA CD from one bank to another?

The simple answer is yes, but an IRA transfer or IRA rollover from one financial institution to another is never simple. The transfer process depends on the rules, regulations and documentation requirements of both financial institutions as well as IRS guidelines. You generally can’t make more than one rollover from the same IRA within one year.

Is an IRA CD tax-deductible?

You may be able to deduct some or all of your contributions to a traditional IRA. Contributions to a Roth IRA aren't deductible — and you don't report them on your tax return — but qualified withdrawals or withdrawals that are a return of your contributions aren't subject to tax.




* The APY (Annual Percentage Yield) shown is based on the deposit amount selected. Expand the listing to see APYs for other deposit amounts.
† The rates for some products vary by region. In these cases we have listed the rates for the region closest to the bank's headquarters.

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.