3 Best IRA CD Rates of 2020
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The best IRA CD rates tend to be at online banks. An IRA CD is generally an option to consider if you’re looking for solid, guaranteed returns on retirement funds. Unlike other types of investments, they don’t come with much risk.
Although IRA CDs provide guaranteed returns, stocks and other investment options can provide much higher yields. An IRA CD should, therefore, only make up a modest portion of anyone’s investment portfolio. In fact, if you’re a younger investor, you might wish to skip CDs entirely and allocate all of your IRA to higher-yielding choices like stock mutual funds.
Best IRA CD Rates
Minimum deposit
$0
Member FDIC
APY
1-year APY 4.00%
3-year APY 3.50%
5-year APY 3.50%
Our Take
Discover has terms ranging from three months to 10 years, which is more than what most banks offer. Its current IRA CD rates are competitive and the minimum to open CDs is relatively low.
Minimum deposit
$5,000
Federally insured by NCUA
APY
1-year APY 2.50%
3-year APY 2.65%
5-year APY 2.50%
Our Take
The easy-to-join credit union has a hefty minimum, but offers a solid array of rates for IRA CDs.
Minimum deposit
$0
Member FDIC
APY
1-year APY 4.00%
3-year APY 3.50%
5-year APY 3.50%
Our Take
Capital One 360 makes it easy to hold retirement savings in IRA CDs. There's no minimum to open, and the bank offers a high rate on its one-year CD option as well as CDs with longer terms.
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» Want to see more CD options? Check out our list of the best CD rates overall
Here are NerdWallet's picks for the best IRA CD rates:
Discover Bank: 2.00% - 3.50% APY, 3 months - 10 years, $2,500 minimum to open
Connexus Credit Union: 2.50% - 2.50% APY, 1 - 5 years, $5,000 minimum to open
Capital One: 3.80% - 3.50% APY, 6 months - 5 years, no minimum to open
Synchrony Bank: 0.25% - 4.15% APY, 3 months - 5 years, $2,000 minimum to open
Ally Bank: 2.90% - 3.50% APY, 3 months - 5 years, no minimum to open
Alliant Credit Union: 4.00% - 3.65% APY, 1 - 5 years, $1,000 minimum to open
Last updated on July 1, 2020
Methodology
We featured easy-to-join financial institutions that we've reviewed with the highest CD rates available for CDs designated for IRAs. Higher rates might be available elsewhere.
NerdWallet's Best IRA CD Rates of 2020
Frequently asked questions
What is an IRA CD?
An IRA CD is a CD that serves as an investment in an individual retirement account plan. You can generally open an IRA plan at a bank or brokerage that holds multiple CDs or other interest-bearing accounts. An IRA is usually traditional or Roth, which have different tax implications.
(See more details about IRAs.)