Certificates of deposit come in different forms, including IRA CDs that let you put your retirement savings into CDs and enjoy the same tax advantages. As with standard CDs, the best IRA CD interest rates are well above 5.00%. For that, you can thank the Federal Reserve’s series of rate hikes over the last couple of years.
Credit unions and online banks dominate our list of the best IRA CD rates in April 2024. If you’ve been considering an IRA CD, now might be a good time to lock those high rates in, because the Fed is likely to ease hikes or even cut rates this year.
Methodology
Our team of experts analyzed hundreds of data points and then used data-driven methodology and thorough fact-checking to come up with the best IRA CDs. We heavily emphasized annual percentage yield (APY) because maximizing earnings is the most important feature of CDs. You can read more about our methodology below.
Show summary
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Ally Bank IRA High Yield CD
: Best for consistent APY across terms
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Synchrony Bank IRA CD
: Best for no minimum opening deposit
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America First Credit Union IRA Certificate
: Best for APY across terms
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Navy Federal Credit Union IRA Certificate
: Best for Trustpilot ratings
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PenFed Credit Union IRA Certificate
: Best for those who want a credit union
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Alliant Credit Union IRA Certificate
: Best for 12-month APY availability
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NASA Federal Credit Union IRA Certificate
: Best for 48-month APY
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Connexus Credit Union IRA Certificate
: Best for 24-month APY
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Discover Bank IRA CD
: Best for long-term options
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Bethpage Federal Credit Union IRA Certificate
: Best for app ratings
Ally Bank IRA High Yield CD
Best for consistent APY across terms
APY Annual Percentage Yield
4.12%
Minimum opening deposit
$0
Term lengths (months)
3, 6, 9, 12, 18, 36, 60
5/5
Why we picked it
Ally offers High Yield IRA CDs with terms of three months, six months, nine months, 12 months, 18 months, three years and five years. Rates range from a low of 3.00% for 3-month CDs to 4.65% for 12-month CDs. While Ally doesn’t have the single highest rate for any term, it offers consistently strong rates across the range of terms, especially once you get to terms longer than three months.
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Ally also offers IRA Raise Your Rate CDs with terms of two years and four years — both with a 3.75% APY. With this type of CD, sometimes called a bump-up CD, you can raise your rate either once or twice, depending on the length of the term. This type of CD allows you to earn a bigger potential return if rates increase after you buy a CD.
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Another bonus: Ally’s CDs have no minimum deposit to open an account, one of only two financial institutions on our list to offer the perk. Plus, Ally doesn’t charge any monthly maintenance fees for its IRA CD accounts.
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Customer service is available 24/7, but remember that Ally is an online bank so you won’t be able to visit a branch.
Pros
- Solid APYs across most terms
- No minimum deposit required
- Raise Your Rate options available
Cons
- 3.00% APY on 3-month CD
- No branch access
- Low Trustpilot ratings
Who should use it
Ally is a good fit for customers comfortable with online banking who don’t necessarily have a lot of money to invest in a CD, as there is no minimum deposit requirement.
Synchrony Bank IRA CD
Best for no minimum opening deposit
APY Annual Percentage Yield
4.21%
Minimum opening deposit
$0
Term lengths (months)
3, 6, 9, 12, 18, 24, 36, 48, 60
5/5
Why we picked it
Access is key with Synchrony Bank’s IRA CDs. The CDs have no minimum opening deposit or balance requirements, and the bank doesn’t charge service fees, making them ideal for those just starting to save.
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Synchrony offers IRA CDs in terms of three months to 60 months, with rates ranging from a low of 2.05% for a 3-month CD to a high of 5.15% for a 9-month CD, the highest 9-month APY on our list.
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Synchrony does not have branch access since it is an online bank, and it doesn’t offer 24/7 customer service with a human.
Pros
- High 5.15% APY on 9-month CD
- No minimum deposit requirement
- No minimum balance requirement
Cons
- Low 2.05% APY on 3-month CD
- No branch access
- Low Trustpilot ratings
Who should use it
Synchrony works best for those comfortable with an online bank and who don’t have much to invest to get started, as no minimum deposits are required to take advantage of its rates.
America First Credit Union IRA Certificate
Best for APY across terms
APY
4.67%
Minimum opening deposit
$500
Term lengths (months)
3, 6, 12, 18, 24, 30, 36, 48, 60
4.7/5
Why we picked it
America First Credit Union offers IRA Certificates in terms of three to 60 months, but the real strength is in shorter terms, where it offers excellent APYs. The following rates are the highest on our list for these terms:
- 3 months: 5.50% APY
- 6 months: 5.30% APY
- 12 months: 5.30% APY
Rates for longer terms are strong, too, and AFCU has the highest average APY across terms on our list at 4.67%.
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The minimum balance across all terms is $500, and customers have access to CD bump and CD ladder options.
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One major downfall to note: Membership is restricted to customers who live, work, worship, volunteer or attend school in certain parts of Utah, Arizona, Idaho, Oregon, Nevada and New Mexico.
Pros
- High rates across terms, especially short terms
- $500 minimum opening deposit
- Strong mobile app ratings
Cons
- Membership requirements mean much of the country isn’t eligible to join
- Low Trustpilot ratings
Who should use it
You must qualify for membership to join AFCU, which means it is only available to those who meet the strict geographic requirements. If you do qualify, it offers some of the best rates on our list with reasonable opening deposit requirements.
Navy Federal Credit Union IRA Certificate
Best for Trustpilot ratings
APY
4.14%
Minimum opening deposit
$1,000
Term lengths (months)
3, 12, 18, 24, 36, 60, 84
4.7/5
Why we picked it
Members enjoy banking with Navy Federal Credit Union, as evidenced by its average Trustpilot rating of 4.6 stars, the highest on our list and one of only two financial institutions with a rating of 4.0 or better. NFCU also offers 24/7 customer service.
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Navy Federal offers IRA Standard Certificates in terms of three months to seven years, with an APY as high as 5.10% on a 12-month term if you deposit a minimum of $100,000. IRA Certificates are also available for minimum deposits of $1,000 and $20,000. The APY on $1,000 minimums and $20,000 minimums range from 2.75% to 5.05%. The rates on a minimum deposit of $100,000 range from 2.80% to 5.10%.
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Membership requirements restrict who is eligible for these IRA CD rates. You have to qualify for membership to join NFCU, which means it’s not available to those without a military or Defense Department connection.
Pros
- High Trustpilot ratings
- 24/7 customer service
- 350 branches worldwide
Cons
- Must qualify for membership
- Minimum opening deposits higher than competitors
- Only one term with APY over 4.50% at minimum deposit
Who should use it
Navy Federal Credit Union’s IRA Certificates are best for eligible customers who can afford the minimum deposit and value strong customer service.
PenFed Credit Union IRA Certificate
Best for those who want a credit union
APY
4.11%
Minimum opening deposit
$1,000
Term lengths (months)
12, 24, 36, 48, 60, 84
4.5/5
Why we picked it
While some other credit unions on our list have fairly strict eligibility requirements, PenFed has no membership requirements and is open to anyone who opens a savings account with a $5 minimum deposit.
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PenFed carries some of the other perks often associated with credit unions, namely strong customer service. It has higher-than-average Trustpilot ratings and 24/7 customer service availability.
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It offers IRA certificates in terms of one to seven years. Dividends are compounded daily and credited monthly, and the minimum opening deposit is $1,000. Rates range from 3.80% for a 7-year CD to 4.55% for a 1-year CD, its highest APY term.
Pros
- Membership available to anyone
- High Trustpilot ratings
- 24/7 customer service
Cons
- $1,000 minimum opening deposit
- No terms shorter than 12 months
- Must open a savings account to become a member
Who should use it
PenFed IRA certificates are best for those who don’t mind opening a savings account to gain membership, seek strong customer service and are looking for solid rates.
Alliant Credit Union IRA Certificate
Best for 12-month APY availability
APY
4.54%
Minimum opening deposit
$1,000
Term lengths (months)
3, 6, 12, 18, 24, 36, 48, 60
4.5/5
Why we picked it
Alliant Credit Union offers a range of IRA certificates that have solid rates. The highlight is the 12-month term at 5.40% APY for a $1,000 minimum deposit and 5.45% APY for the jumbo certificate with a $75,000 minimum deposit.
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You can choose from terms of three months to five years on both standard and jumbo certificates. The minimum deposit is $1,000 on standard certificates and $75,000 on jumbo certificates. Rates range from 4.00% to 5.40% on standard certificates and 4.05% to 5.45% on jumbo certificates.
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Membership requirements are based on various criteria such as your location and your current or former employer. Even if you don’t qualify, Alliant will make a one-time $5 contribution on your behalf to the Alliant Credit Union Foundation so you can become eligible.
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Alliant is a digital credit union, meaning there is no branch access. The credit union does offer mobile apps with solid ratings and 24/7 customer service by phone.
Pros
- High 5.40% APY on 12-month term
- Strong mobile app ratings
- Solid mix of short and long terms
Cons
- Low Trustpilot ratings
- Must meet membership requirements
- $1,000 minimum opening deposit
Who should use it
Alliant Credit Union is best for those specifically looking for a 12-month term and who have at least $1,000 to invest. It’s also important that you don’t mind the extra step of becoming a member and you’re comfortable with online banking.
NASA Federal Credit Union IRA Certificate
Best for 48-month APY
APY
4.51%
Minimum opening deposit
$50
Term lengths (months)
6, 9, 12, 15, 24, 36, 48, 49, 60
4.5/5
Why we picked it
NASA Federal Credit Union offers IRA Certificates in terms of six to 60 months, with early savers, add-on and bump-up options available on certain terms. Minimum balance requirements vary as well, with four options available depending on your chosen term length: $50, $250, $1,000 and $10,000.
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Rates range from 4.10% for a 60-month certificate ($1,000 minimum balance) to 5.40% for a 9-month certificate ($10,000 minimum balance). The standout term is 48 months, with an APY of 4.20%, the highest on our list at that term length.
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When it comes to customer service, NASA Federal Credit Union sits in the middle ground in both Trustpilot ratings and live support availability.
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Membership is largely restricted to employees and retirees from NASA and affiliate organizations and companies, or relatives of current members. However, NASA FCU also offers a complimentary one-year affiliated membership to the National Space Society (NSS), which entitles you to full NASA Federal membership benefits.
Pros
- High 4.20% APY on 48-month term
- Strong mobile app ratings
- Solid rates across terms
Cons
- Must meet membership requirements
- $1,000 minimum opening deposit on most terms
- No 24/7 live customer support
Who should use it
NASA FCU is a good fit for customers who want good rates across all CD terms, but you’ll need to deposit at least $10,000 to get the best rates. You must also qualify for membership.
Connexus Credit Union IRA Certificate
Best for 24-month APY
APY
4.18%
Minimum opening deposit
$5,000
Term lengths (months)
12, 17, 24, 36, 48, 60
4.5/5
Why we picked it
Connexus Credit Union offers IRA Share Certificates with six different terms. Customers can choose between regular IRA Share Certificates, which require a $5,000 minimum deposit, and Jumbo IRA Share Certificates, which require a $100,000 minimum deposit.
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Rates for regular certificates range from a low of 3.51% for the 60-month certificate to a high 4.96% for the 17-month special. For jumbo certificates, rates range from a low of 3.56% for the 60-month certificate to a high 5.01% for the 17-month special.
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While the $5,000 minimum opening deposit is the highest on our list, the 24-month CD APY of 4.51% is the highest for that term as well.
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Membership is limited and available to employees, retirees, family members, members, students or student alumni of 20-plus groups or companies, including BMW Motorcycle Owners of America Group, Harley Owners Group, Honeywell and Liberty Mutual Insurance. It is also open to residents of certain communities in Illinois, Minnesota, Ohio and Wisconsin. Additionally, you can make a one-time $5 donation to become a member of the Connexus Association.
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Connexus is part of a nationwide network of credit unions, meaning there are more than 5,000 branches available.
Pros
- High 4.51% APY on 24-month term
- Strong mobile app ratings
- More than 5,000 shared branches
Cons
- Must meet membership requirements
- $5,000 minimum opening deposit
- Low Trustpilot ratings
Who should use it
For those who qualify for membership and have a lot of money to invest, Connexus offers decent rates on most of its IRA certificates, especially if you’re looking for a 24-month IRA CD.
Discover Bank IRA CD
Best for long-term options
APY
3.87%
Minimum opening deposit
$2,500
Term lengths (months)
3, 6, 9, 12, 18, 24, 30, 36, 48, 60, 84, 120
4.1/5
Why we picked it
Discover Bank offers IRA CDs in terms of three months to 10 years, which is a wider time frame than most institutions we compared. Most rates are strong beyond the 3-month CD, which offers a 2.00% APY. The highest rate is 4.70% APY on a 12-month CD.
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Another highlight is the 10-year CD with a 3.75% APY. Most banks on our list don’t offer terms of this length, and Discover’s rate is much better than the other institutions that do offer them.
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The $2,500 minimum deposit is higher than many financial institutions and could be a hurdle for some beginning savers.
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Discover offers 24/7 live customer support, strong app ratings and decent Trustpilot ratings. Discover Bank has only one physical branch, in Delaware.
Pros
- Wide range of CD terms
- High 3.75% APY on 10-year term
- 24/7 live customer support
Cons
- $2,500 minimum deposit
- Limited branch access
- Low 2.00% APY on 3-month CD
Who should use it
If you want to lock in a decent IRA CD rate for a long term, Discover is a good option. You can get a 3.75% APY on a 10-year CD.
Bethpage Federal Credit Union IRA Certificate
Best for app ratings
APY
3.14%
Minimum opening deposit
$50
Term lengths (months)
3, 6, 12, 18, 24, 30, 36, 39, 48, 60
4.1/5
Why we picked it
Bethpage Federal Credit Union offers IRA Certificates on both traditional and Roth IRAs that can be opened for as little as $50. Terms are available from three months to 60 months, with APYs ranging from 2.25% (3 months) to 4.00% (6 months and 12 months), with most at 3.00%.
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Branches are limited to the state of New York, so you’ll need to be comfortable with online banking if you don’t live close to one. Fortunately, Bethpage Federal Credit Union’s apps have very good ratings on both Apple and Google Play stores.
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Membership is open to anyone who opens a savings account with a $5 minimum deposit.
Pros
- Strong mobile app ratings
- Low $50 minimum deposit
- Solid Trustpilot ratings
Cons
- Can get better rates at other financial institutions
- Best rates restricted to 6- and 12-month certificates
- Must open a savings account to become a member
Who should use it
Bethpage FCU is best for those who enjoy mobile banking, thanks to strong app ratings. While rates for most terms are lower than others on our list, the $50 minimum opening deposit makes them very accessible to beginner savers.
Our picks at a glance
| Annual Percentage Yield | Minimum opening deposit | Term lengths (months) | |
|---|---|---|---|
Ally Bank IRA High Yield CD | 4.12% | $0 | 3, 6, 9, 12, 18, 36, 60 |
Synchrony Bank IRA CD | 4.21% | $0 | 3, 6, 9, 12, 18, 24, 36, 48, 60 |
America First Credit Union IRA Certificate | 4.67% | $500 | 3, 6, 12, 18, 24, 30, 36, 48, 60 |
Navy Federal Credit Union IRA Certificate | 4.14% | $1,000 | 3, 12, 18, 24, 36, 60, 84 |
PenFed Credit Union IRA Certificate | 4.11% | $1,000 | 12, 24, 36, 48, 60, 84 |
Alliant Credit Union IRA Certificate | 4.54% | $1,000 | 3, 6, 12, 18, 24, 36, 48, 60 |
NASA Federal Credit Union IRA Certificate | 4.51% | $50 | 6, 9, 12, 15, 24, 36, 48, 49, 60 |
Connexus Credit Union IRA Certificate | 4.18% | $5,000 | 12, 17, 24, 36, 48, 60 |
Discover Bank IRA CD | 3.87% | $2,500 | 3, 6, 9, 12, 18, 24, 30, 36, 48, 60, 84, 120 |
Bethpage Federal Credit Union IRA Certificate | 3.14% | $50 | 3, 6, 12, 18, 24, 30, 36, 39, 48, 60 |
Why get an IRA CD?
- Low risk: All of the IRA CDs on this list are insured by either the Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA) up to $250,000.
- Guaranteed rates: IRA CDs offer a guaranteed return with predictable rates and no brokerage fees.
- Tax savings: Depending on the type of IRA, money can grow tax-free or tax-deferred.
How does an IRA CD work?
To understand how an IRA CD works, you need to know how IRAs and CDs work on their own.
An IRA is a tax-advantaged retirement savings account that allows your money to grow tax-free or tax-deferred, depending on whether the account is a traditional or Roth IRA. With a traditional IRA, you pay taxes on any withdrawals. With a Roth IRA, you don’t pay taxes on money you withdraw in retirement.
CDs are savings accounts that give you a fixed interest rate for a fixed period of time, or term. CD deposits are insured up to $250,000 at federally insured banks and credit unions. Just don’t cash out early or you’ll likely get hit with an early withdrawal penalty.
With an IRA CD, you put your retirement savings specifically into a CD. This differs from other types of IRAs, which are funded by stocks, bonds and mutual funds.
IRA CD rates
An IRA CD rate refers to the interest rate you earn on the investment, usually presented as the annual percentage yield (APY). Your rate will determine the return you get on your IRA CD once it matures. Other factors can play a part as well, such as how often the interest compounds.
How to choose the best IRA CD
Choosing the best IRA CD depends on your individual needs. If you are looking for maximum immediate payoff, then you should consider a short-term IRA CD of 12 months or less. These typically offer the highest rates and you don’t have to have your money tied up for a long time. If you’d rather earn steady interest over several years, you can find decent rates on IRA CDs ranging from 5- to 10-year terms.
In all cases, you should research different banks and credit unions that offer the best rates on the terms you prefer. Be sure, too, to research any fees and potential penalties when considering an IRA CD.
Pros of investing in an IRA CD
- Secure way to invest your money because of FDIC and NCUA protection
- Predictable returns through fixed interest rates throughout the term
- Different term options give you the flexibility to cash in profits quickly or over the course of many years
- No brokerage fees
- Money can grow tax-free or tax-deferred, depending on the type of IRA
Cons of investing in an IRA CD
- Could get higher returns with other types of investments
- If interest rates go up before your IRA CD matures, you could be missing out on a better APY
- IRA contributions are limited to $7,000 a year if you are 50 or younger and $8,000 if you are over 50, which means you can’t put huge sums into the accounts. Those limits apply to all IRAs, including IRA CDs
- Early withdrawal penalties usually apply
IRA CDs vs. other investment options
Although there are many assets you can invest in — including stocks, bonds, funds, business ventures and real estate — consumers who consider IRA CDs are probably weighing those against similar investments such as regular IRAs, standard CDs and bank savings accounts.
Regular IRAs could bring higher returns because they include assets such as stocks, which can quickly rise in value. The advantage of IRA CDs is that you have a fixed return so you don’t have to worry about market volatility.
The edge standard CDs have over IRA CDs is that you can invest a lot more money into standard CDs because there are no contribution limits except those imposed by the bank itself. But IRA CDs carry tax advantages not available with standard CDs.
CDs in general can let you lock in higher interest rates for a longer period than with savings accounts. The main advantage of savings accounts is that you have immediate access to your funds without having to pay early withdrawal penalties.
Methodology
CNN Underscored Money analyzed CDs from more than 15 financial institutions to come up with the rankings for the best IRA CDs. This included accounts from a mix of traditional banks, online banks and credit unions that are available nationally. We ranked each account on nine data points across seven categories.
Here are the categories we analyzed and how we weighted each:
APY (55%)
APY is a critical factor for CD accounts because this determines how quickly your deposit will grow. Accounts with higher APYs scored better.
Available terms (15%)
Since CDs require you to lock in your deposit for the term, having more term options is better because it gives you more flexibility.
Minimum opening deposit (10%)
Minimum opening deposits determine how accessible a CD is and how easily you can employ strategies like CD laddering that require multiple CDs. Accounts that have low or no minimum opening deposits scored better.
Customer experience (5%)
It’s important to have a bank that’s trustworthy and easy to reach when you need help. We considered customer service availability and Trustpilot ratings in this category.
Digital experience (5%)
You’ll want a bank with a usable app and plenty of online features so that it’s easy to bank from anywhere. We analyzed app reviews and the ability to bank online.
Compound interest schedule (5%)
This is an important factor to consider because the more frequently your interest compounds, the faster your deposit grows and the more frequently you will potentially have access to your interest earnings.
Membership requirement (5%)
Financial institutions may have membership requirements you must meet to join and get accounts. For example, some credit unions have eligibility based on a list of employers, counties of residence or membership in certain charitable organizations. We rewarded financial institutions that allow anyone to sign up.
We also considered other factors like renewal and early withdrawal policies.
Frequently asked questions (FAQs)
IRA CDs work best for those who are saving for retirement and want predictable returns without investing very large amounts of money.
Most pre-retirement payments you receive from a retirement plan or IRA can be rolled over by depositing the payment in another retirement plan or IRA within 60 days, according to the IRS. However, you can’t roll funds from a Roth IRA into a traditional IRA. These rules apply to IRA CDs as well.
If you don’t make any changes to your IRA CD when it matures, it will likely be automatically renewed for the same term, but at current rates at the time of renewal. Check your specific financial institution’s rules about what happens when CDs mature and how long you have to make a decision. But you also have the option of cashing it out. If you choose the latter, make sure you are aware of the tax rules regarding IRA withdrawals.
