Written by Matthew Goldberg
Edited by Marc Wojno
Reviewed by Greg McBride, CFA
Best available rates across different account types for Friday, January 05, 2024
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What To Know First
An individual retirement account certificate of deposit (IRA CD) is a savings option for those who are looking for a guaranteed return on retirement funds.
IRA CDs are safe investments at federally-insured financial institutions and appeal to investors who like the predictability that comes with a fixed annual percentage yield (APY). Use Bankrate’s CD calculator to see exactly how much money you will earn over the term of the IRA CD.
Bankrate’s picks for the top IRA CD rates
- Citibank: 0.05%-5.39% APY (3 months-5 years); $250 minimum deposit
- Synchrony Bank: 2.25%-5.50% APY (3 months-5 years); $0 minimum deposit
- America First Credit Union: 4.20%-5.30% APY (3 months-5 years); $500 minimum deposit
- Suncoast Credit Union: 3.85%-5.50% APY (6 months-5 years); $500 minimum deposit
- Zions Bank: 0.30%-5.20% APY* (1 month-5 years); $1,000 minimum deposit
- Discover Bank: 2.00%-5.30% APY (3 months-10 years); $2,500 minimum deposit
- Pentagon Federal Credit Union: 3.80%-5.15% APY (1-7 years); $1,000 minimum deposit
- Delta Community Credit Union: 4.00%-5.15% APY (1-5 years); $1,000 minimum deposit
- Ally Bank: 3.00%-5.15% APY (3 months-5 years); $0 minimum deposit
Note: Annual percentage yields (APYs) shown are as of Nov. 30, 2023. Banks are listed in order of top APYs for one-year IRA CDs with a $25,000 balance. Some APYs may require higher balances than the minimum deposit. Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
*APYs are only available in Idaho and Utah.
On This Page
- Bankrate's picks for the top IRA CD rates
- What is an IRA CD?
- Pros and cons of IRA CDs
- IRA CD risks
- IRA CD FAQs
- Research methodology
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The following accounts can be found at most banks and credit unions. They’re federally insured for up to $250,000 and offer a safe place to put your money while earning interest.
Certificate of Deposit (CD)
CDs are best for individuals looking for a guaranteed rate of return that’s typically higher than a savings account. In exchange for a higher rate, funds are tied up for a set period of time and early withdrawal penalties may apply.
Checking account
Checking accounts are best for individuals who want to keep their money safe while still having easy, day-to-day access to their funds. ATM and other transactional fees may apply.
Savings / Money Market Accounts (MMA)
Savings and MMAs are good options for individuals looking to save for shorter-term goals. They’re a safe way to separate your savings from everyday cash, but may require larger minimum balances and have transfer limitations.
Current 1 year CD trends
National average
1.74% APY
The "Bankrate Partner average" is calculated from the average of the top savings account offers from the institutions we track, included on this page as of 1/5/2024. "National average" is determined by Bankrate's comprehensive national survey of savings accounts and CDs.
On This Page
On This Page
- Bankrate’s picks for the top IRA CD rates
- What is an IRA CD?
- Pros and cons of IRA CDs
- IRA CD risks
- IRA CD FAQs
- Research methodology
Bankrate’s picks for the top IRA CD rates
Note: Annual percentage yields (APYs) shown are as of Nov. 30, 2023. Banks are listed in order of top APYs for one-year IRA CDs with a $25,000 balance. Some APYs may require higher balances than the minimum deposit.
Bankrate's editorial team validates this information regularly, typically biweekly. APYs may have changed since they were last updated and may vary by region for some products. Bankrate includes only FDIC banks or NCUA credit unions in its listings.
Citibank: 0.05%-5.39% APY (3 months-5 years), $250 minimum deposit
Citibank is one of the largest banks in the U.S. It offers IRA CDs with terms ranging from three months to five years. It also has regular CDs, checking accounts and savings accounts. In certain areas, its high-yield savings account offers a competitive APY.
Synchrony Bank: 2.25%-5.50% APY (3 months-5 years), $0 minimum deposit
Synchrony Bank, formerly known as GE Capital Bank, is a subsidiary of Synchrony Financial. Synchrony Bank offers Roth IRA CDs and traditional IRA CDs.
Opening an IRA CD with Synchrony Bank can only be done over the phone, as Synchrony has no branches and doesn’t offer an online application. Its corporate headquarters are in Draper, Utah.
America First Credit Union: 4.20%-5.30% APY (3 months-5 years), $500 minimum deposit
America First Credit Union was founded in 1939. It has more than 1.2 million members.
In addition to IRA CDs, America First has checking accounts, savings accounts and different types of CDs.
Suncoast Credit Union: 3.85%-5.50% APY (6 months-5 years), $500 minimum deposit
Suncoast Credit Union offers both regular IRA CDs with a $500 minimum balance and jumbo IRA CDs that require at least $100,000. These jumbo IRA CDs may earn a higher yield than the regular IRA CDs at the Florida credit union.
Zions Bank: 0.30%-5.20% APY* (1 month-5 years), $1,000 minimum deposit
Zions Bank offers 10 terms of CDs as well as a variety of accounts including IRA CDs, an IRA money market account, multiple checking accounts, savings accounts and a money market account.
Zions Bank is headquartered in Salt Lake City.
*APYs are only available in Idaho and Utah.
Discover Bank: 2.00%-5.30% APY (3 months-10 years), $2,500 minimum deposit
Discover Bank eliminated fees on its deposit products in June 2019. Interest on Discover Bank CDs is compounded daily and credited monthly. Discover Bank provides a nine-day grace period after a CD matures. Its headquarters are in Greenwood, Delaware.
Pentagon Federal Credit Union: 3.80%-5.15% APY (1 year-7 years), $1,000 minimum deposit
Pentagon Federal Credit Union was established in 1935. It has more than 2 million members and has its main office in McLean, Virginia.
PenFed has six terms of IRA CDs, ranging from one year to seven years. There are no early withdrawal penalties on the principal.
Delta Community Credit Union: 4.00%-5.15% APY (1 year-5 years), $1,000 minimum deposit
Delta Community Credit Union began as the Delta Employees Credit Union in 1940. It was started by eight Delta Air Lines employees. Since then, Delta Community Credit Union has more than 490,000 members and has 32 branches. Most of those branches are in Georgia.
Anyone living or working in metro Atlanta and employees of more than 150 businesses are welcome at Delta Community Credit Union. Delta Air Lines, Chick-fil-A and UPS are some of the eligible businesses.
Ally Bank: 3.00%-5.15% APY (3 months-5 years), $0 minimum deposit
Ally Bank is an online-only bank that offers more CD options than most direct banks. Ally gives savers options with a High Yield CD and a Raise Your Rate CD. If you fund your IRA CD within 90 days, you’ll get its best rate for the term and balance on either the day you open or the day you fund the account. Ally Bank IRA CDs are available as a traditional, Roth and simplified employee pension (SEP) IRA.
What is an IRA CD?
An IRA CD is an individual retirement account where your money is parked in a certificate of deposit, a time-deposit account that pays interest at a set rate in exchange for the saver agreeing to deposit cash for a set term. CD terms vary, usually ranging from three months to 10 years. CDs generally offer a higher rate than savings accounts because they are less liquid.
Typically, your options are a traditional IRA or Roth IRA. The tax advantages for each are different.Bankrate’s IRA calculatorcan help you compute and compare potential earnings for both types.
You may want to consider getting an IRA CD if your tolerance for risk is low and you’re looking for a guaranteed return to boost your retirement savings while enjoying tax advantages. IRAs are subject to contribution limits, and not all contributions are eligible for tax savings. Check with your tax advisor if you have questions.
Of course, CDs aren’t the only investment option for those looking to put their money into an IRA. Stocks, bonds, mutual funds and money market funds are also popular options.
Which IRA CD is best for you depends on your goals. Consider the rate offered along with other factors, including the minimum deposit required and maturity date. Rates vary by the term of the CD. Some banks may offer more competitive rates on five-year IRA CDs, for example, but not for six-month IRA CDs. Consider your time horizon when deciding how best to invest.
Pros and cons of investing in an IRA CD
Before opening an IRA CD, weigh the pros and cons to see if it’s the right product for you.
Pros
A guaranteed return on your investment (as long as you don’t withdraw from your CD before it matures).
Your money is insured up to $250,000 as long as it is held at an FDIC-insured bank or an NCUA credit union.
You won’t have to worry about fees unless you’re penalized for tapping into your account before it matures.
Cons
If you’re younger, you may want to invest in something with the potential for a higher return.
The rate you earn may not keep up with inflation.
IRA CD risks
IRA CDs are just as safe as a regular CD, as long as they are opened at an FDIC-insured bank or an NCUA credit union and don’t surpass the insurance limits. For instance, IRAs fall in the “Certain Retirement Account” category at the FDIC. The coverage limit is $250,000 per owner on IRAs at an FDIC bank in a deposit product, such as a savings account or a CD. At a credit union, the National Credit Union Share Insurance Fund covers an IRA separately from insurance coverage on your other credit union accounts. The NCUSIF covers an IRA at a credit union up to an additional $250,000.
Use theFDIC Electronic Deposit Insurance Estimatorand contact your FDIC-insured bank to confirm that your account is insured. At a credit union, use theShare Insurance Estimatorand contact your credit union to confirm your account meets insurance requirements.
IRA CD FAQs
Research methodology
At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.
Bankrate regularly surveys around 70 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.
To find the best CDs, our editorial team analyzes various factors, such as: APY, the minimum deposit needed to earn that APY (or to open the CD) and whether it is broadly available. All of the accounts on this page are insured by the Federal Deposit Insurance Corp. (FDIC) or the National Credit Union Administration (NCUA).
When selecting the best CD for you, consider the purpose of the money and when you’ll need access to these funds to help you avoid early withdrawal penalties.
