Best IRA CD Rates of June 2024: Grow Your Retirement Fund (2024)

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IRA certificates of deposit (CDs) might be a good option if you expect to retire in a few years and want a safe place to grow money.

An IRA CD is a type of retirement account that invests your money in a CD. When you open a regular CD, you're putting away money for the near future — with an IRA CD, your CD is part of your long-term retirement savings strategy.

Best IRA CD Rates

• NASA Federal Credit Union IRA CD: 4.00% to 5.50% APY
• Alliant Credit Union IRA CD: 4.00% to 5.15% APY
• Synchrony IRA CD: 0.25% to 5.10% APY
• Connexus Credit Union IRA Share Certificates: 3.51% to 5.01%‍ APY
• Wells Fargo IRA CD: 0.01% to 5.01% APY
• Consumers Credit Union IRA CDs: 0.50% to 5.00%APY
• Digital Federal Credit Union IRA CD: 3.46% to 4.86% APY

Compare the Best IRA CDs

The best IRA CDs pay significantly more than average CD rates. Our top picks also have reasonable fees and come in a variety of terms.

You can open the best IRA CDs regardless of where you live in the United States. These CDs are available nationwide. Learn more about our top picks, below.

NASA Federal Credit Union IRA Certificate

NASA Federal Credit Union currently offers the highest APY we've found for IRA CDs with its 9-month IRA certificate, which has a 5.50% APY.

It also offers several specialty IRA certificates. Its specialty certificates include a 1-year Early Savers IRA certificate for members 23 or under, a 1-year Add-On IRA certificate that lets you add money into your CD during its term length, and two Bump-Rate IRA certificates that let you raise your rate once during the certificate's term length if NASA Federal Credit Union raises its rates.

The Early Savers IRA certificate has a very low minimum opening deposit of $50, while the Add-On IRA certificate has a still-low minimum opening deposit of $250.

Unfortunately, if you're interested in NASA Federal Credit Union's best rates, you'll need to have at least $10,000 for a minimum opening deposit. Otherwise, NASA's IRA certificates have a standard $1,000 minimum opening deposit.

To open an IRA CD with NASA Federal Credit Union, you'll need to meet its eligibility requirements. Luckily, NASA Federal Credit Union makes this easier than most.

When joining NASA Federal Credit Union, it will provide you with a free one-year membership with the National Space Society, which will qualify you for membership. You can also qualify for membership if you work or worked for NASA, are an employee of one of NASA Federal Credit Union's many partner companies, or if you are directly related to a current member.

Minimum opening deposit: $50 to $10,000

Term options: 6 months to 5 years

Early withdrawal penalties: Early withdrawal penalties for NASA Federal Credit Union IRA certificates are as follows:

• 182 days of interest for terms up to 24 months
• 365 days of interest for terms greater than 24 months

Alliant Credit Union IRA Certificate

At Alliant, you can open a Traditional, Roth, or SEP IRA CD. It's easier to become a member of Alliant than it is with many credit unions.

Alliant's shortest term is one year. If you're looking for shorter-term IRA CDs, you may prefer a different institution.

Minimum opening deposit: $1,000

Term options: 1 to 5 years

Early withdrawal penalties: When you withdraw funds from your IRA CD before it matures, Alliant charges you the interest earned for the number of days the account has been open, as follows:

• Up to 90 days for terms of 12 to 17 months
• Up to 120 days for terms of 18 to 23 months
• Up to 180 days for terms of 24 months or more
• 7 days during the 7-day grace period for new IRA CDs

Alliant Credit Union Review

Synchrony IRA CD

At Synchrony, you can open a Traditional IRA or Roth IRA. Its most competitive rate is for 5-year CDs. The minimum opening deposit for Synchrony IRA CDs is also $0.

Although Synchrony has a variety of term lengths overall, you can find ones longer than 5 years elsewhere.

Minimum opening deposit: $0

Term options: 3 months to 5 years

Early withdrawal penalties: Synchrony offers standard penalties for early withdrawals of your principal balance, as follows:

• 90 days interest penalty for a CD term of under 12 months
• 180 days interest penalty for a CD term of 12 months to 48 months
• 365 days interest penalty for a CD term of more than 48 months

Synchrony Bank Review

Connexus Credit Union IRA Share Certificates

Connexus Credit Union's CD rates are strong. Its best CD rate is its 17-month special, so if you're interested in an unconventional CD term length, Connexus might be a good choice for you. In addition to IRA CDs, Connexus also offers traditional IRAs, Roth IRAs, and IRA savings accounts.

Connexus has a very large minimum opening deposit of $5,000. In addition, interest only compounds quarterly. If you're interested in opening an IRA CD with less than $5,000, or want interest that compounds more frequently, one of our other choices might be a better pick for you.

Anyone in the U.S. can join Connexus as long as they join the Connexus Association for a one-time $5 donation.

Minimum opening deposit: $5,000

Term options: 1 year to 5 years

Early withdrawal penalties: The penalties for early withdrawal are as follows:

• 90 days interest for 1-year CDs
• 180 days interest for a CD term of 1 year to 5 years
• 1 year of interest for 5-year CDs

Connexus Credit Union Review

Wells Fargo IRA CD

Wells Fargo offers strong rates on several IRA CDs, although not all of its IRA CDs' rates are high. It's also a nationwide brick-and-mortar bank, so if you want to bank in-person, Wells Fargo might be your best bet.

To earn Wells Fargo's best IRA CD rates, you'll need to meet several criteria. First of all, you'll need to have a Wells Fargo checking account to earn its relationship rate. You'll also need to match the higher minimum opening deposit of $2,500 that Wells Fargo requires for its best rates. And Wells Fargo IRA CD rates differ by location, so you'll need to live in an area that offers the best rates.

Minimum opening deposit: $1,000 to $2,500

Term options: 1 month to 12 years

Early withdrawal penalties: The penalties for early withdrawal are as follows:

• 1 month of interest for terms of less than 3 months
• 3 months of interest for terms of 3 months to 1 year
• 6 months of interest for terms of over 1 year to 2 years
• 1 year of interest for terms over 2 years

Wells Fargo Bank Review

Consumers Credit Union IRA Certificate

Consumers Credit Union offers both regular IRA certificates and jumbo and super jumbo IRA certificates.

Rates for super jumbo certificates go as high as 5.20% APY, so if you're interested in opening a jumbo CD with at least $250,000, Consumers Credit Union might be a good choice. If you aren't looking for a jumbo CD, Consumer Credit Union's regular IRA certificates have a lower-than-average minimum opening deposit of $250.

Keep in mind, however, that Consumers' NCUA insurance only offers insurance on up to $250,000 of your funds per depositor, per account type; if you put more than $250,000 in a super jumbo IRA CD, not all of your money will be covered in the low chance of the credit union failing.

Like all credit unions, Consumers Credit Union limits who can join it. However, Consumers makes it easier to join than most. To join, you'll just need to donate $5 to the Consumers Cooperative Association. While Consumers Credit Union is a credit union anyone can join, keep in mind that all of its branches are in Illinois. If you're not in Illinois and want to bank in person, you might want to go with another financial institution.

Minimum opening deposit: $250

Term options: 91 days to 5 years

Early withdrawal penalties: Consumers Credit Union IRA certificates have the following early withdrawal penalties:

• 60 days interest for terms of 1 year or less
• 120 days interest for terms over 1 year

Consumers Credit Union Review

Digital Federal Credit Union IRA Certificate

Digital Federal Credit Union offers both regular IRA certificates and jump-up IRA certificates, which work like bump-up CDs. It has strong short-term IRA certificate rates, and it has a relatively low opening minimum deposit of $500.

Like all credit unions, Digital Federal Credit Union limits who can join. However, it makes joining easier than most.

To be eligible to join, you can be an employee of one of its many participating employers, you can live, work, worship, or attend school in specific parts of Massachusetts, or you can be related to a member.

If none of those are true for you, you can become eligible by joining one of several participating organizations. The membership fees for these organizations range from $10 to $120, and you can join several of them while applying for Digital Federal Credit Union membership.

Minimum opening deposit: $500

Term options: 3 months to 5 years

Early withdrawal penalties: Digital Federal Credit Union IRA certificates have the following early withdrawal penalties:

• 60 days interest for terms of 3 months to 11 months
• 90 days interest for terms of 1 year to 35 months
• 180 days interest for terms of 3 years to 5 years

Bank Trustworthiness and BBB Ratings

We review the ethics of each company, so you can see if a specific financial institution aligns with your values.

We include the settlement history of the last 3 years so you're aware of any recent public controversies involving the bank. None of the banks on our list have any recent public scandals, though.

The Better Business Bureau grades companies based on responses to customer complaints, honesty in advertising, and transparency about business practices. Here are the BBB scores for our top picks:

NASA Federal Credit Union has an A rating from the BBB because of a few unresolved customer complaints.

Wells Fargo has an F rating from the BBB because government action has been taken against it, and because it hasn't responded to multiple complaints filed against it.

Synchrony currently has an NR rating because it is in the process of responding to previously closed complaints.

Wells Fargo and Synchrony have been involved in public controversies.

Wells Fargo has been involved in two recent controversies. In 2022, the Consumer Financial Protection Bureau required Wells Fargo to pay $3.7 billion. The CFPB says that Wells Fargo misapplied loan payments, foreclosed on homes that should not have been foreclosed on, and repossessed vehicles that should not have been repossessed, among other issues. The CFPB says that this caused thousands of customers to lose their vehicles and homes.

In 2021, Wells Fargo entered into a cease and desist order with the Office of the Comptroller of the Currency. The OCC said that Wells Fargo's home lending loss mitigation program led to unsafe or unsound practices. The OCC also says that Wells Fargo did not meet the requirements of a previous 2018 consent order from the OCC. As part of the cease and desist order, Wells Fargo had to pay $250 million.

Synchrony has been involved in a few public controversies. In 2023, Synchrony was required to pay $2.6 million in a settlement when accused of calling customers about bank accounts they didn't have. In 2021, the bank also was required to pay $3.5 million in a settlement when accused of making unreasonable phone calls to debtors living in California.

Types of IRA CDs

Traditional IRA CDs

Traditional IRA CDs work like Traditional IRAs, in that you put money into the account before you pay income tax on that money. You'll be taxed on your funds when you take them out of the account. You can deduct your contributions when you file your tax returns.

Roth IRA CDs

Roth IRA CDs work like Roth IRAs, in that you put post-tax money in the account. This means you won't have to pay taxes on the money when you take it out of the account, but it also means you're putting less money in the account than you would if you went with a traditional IRA CD. You can't deduct your contributions when you file your taxes.

SEP IRA CDs

If you're self-employed, or if you own a small business, you can still open an IRA CD. SEP IRAs, or Simplified Employee Pension IRAs, are a type of IRA that allows you to contribute funds for both yourself and any eligible employees of your business. SEP IRAs come with higher contribution limits than other types of IRAs. Some banks allow you to open SEP IRA CDs, in addition to standard SEP IRAs.

What Influences the Best IRA CD Rates

Market Fluctuations

Banks and credit unionshave to respond to market changes when setting their rates. For example, if other banks and credit unions raise their rates, then your financial institution will have to raise its rates as well to stay competitive. And if other financial institutions lower their rates, then your bank or credit union can still make a profit while lowering their own rates.

Federal Reserve Actions

If you're wondering what the Federal Reserve is, also known as the Fed, it's the central banking system of the U.S. It meets several times a year to decide its rates and announce rate changes. Generally, if the Fed changes its rates, other banks and credit unions follow suit.

Individual Institution Rates

Ultimately, each individual institution will offer different interest rates on its IRA CDs for a diverse set of reasons. Banks might set rates depending on location, for example, or because it wants people to open an IRA CD with a specific term length, such as a 6-month CD. Always compare multiple financial institutions when looking for an IRA CD to make sure you're getting the best rate.

Choosing the Right IRA CD Strategy

When choosing which IRA CD to go with, you'll use many of the same strategies when choosing regular CDs. You'll want to consider the annual percentage yield the account offers, as well as the minimum opening deposit. You'll also want to think about the term length: do you want to choose the best rate and go with a 6-month or 1-year CD, or do you want to lock in your interest rate for longer and go with a long-term CD?

In addition, decide whether you go with a traditional IRA CD or a Roth IRA CD. You might want a Roth IRA if you think you'll pay less tax on your funds if you pay now; otherwise, a traditional IRA might be a better fit, as you'll be able to earn more interest on the larger amount of money you're putting into the account. Also consider whether you want a CD at all; see if one of the best Roth IRA accounts might be a better fit for your needs if you want more variety in investment options.

IRA CD FAQs

Why You Should Trust Us: Experts' Advice on Choosing the Best IRA CDs

We consulted banking and financial planning experts to inform these picks and provide their advice on finding the best CDs to use for your money. You can read their insights at the bottom of this post.

Here's what they had to say about CDs. (Some text may be lightly edited for clarity.)

How can someone determine whether a bank is the right fit for them?

Tania Brown, certified financial planner and vice president of coaching strategy atOfColor:

"Obviously, you want to make sure it's FDIC insured. Also, your banking experience — do you like walking into a bank? Well, then you need someone local. Do you just not care if you ever see your bank? Then you're okay online. Do you write checks? Do you not write checks? So it's thinking through how your experience with it is going to be before you make that decision."

Sophia Acevedo, banking editor,Business Insider:

"I would create a list of what I prioritize most in a bank account. For example, some banks have accounts that charge monthly service fees. I would look to see what the requirements are for waiving the monthly service fee and whether I think I could feasibly meet those requirements each month. If I'm searching for an interest-earning bank account I'll pay attention to interest rates. I would make sure the account pays a higher interest rate than theaverage bank account."

What makes a CD good or not good?

Mykail James, MBA, certified financial education instructor,BoujieBudgets.com:

"You always want to look at how much money you need to start up. And then if you can continuously add money in. Also, check not just what the interest rate is, but how often they pay out interest, whether it's monthly or quarterly."

Sophia Acevedo, CEPF:

"CDs could be worthwhile if you don't need access to some of your money, since they have a fixed interest rate for a specific term. I would look at current CD rates and see how they stack up to other types of savings accounts."

How should someone choose a CD term length?

Roger Ma, certified financial planner withlifelaidout®and author of"Work Your Money, Not Your Life":

"I would think about when you need the money and then compare that with what the prevailing CD rates are, and then what makes sense from a financial perspective, but also from your own personal timing perspective."

Mykail James, CFEI:

"I believe in having a plan for whatever the funds are. If it's supposed to be a house fund, and you want to wait for another two years to buy a house, that's what you should be thinking of when you want to have this money."

Our Methodology: How We Chose the Best IRA CDs

A Business Insider, our mission is to help smart people make the best decisions with their money. We understand that "best" is often subjective, so in addition to highlighting the clear benefits of a financial product or account — a high APY, for example — we outline the limitations, too. We spent hours comparing and contrasting the features and fine print of various products so you don't have to.

We reviewed over a dozen institutions to identify the strongest options using our CD rates methodology. Through our research, we've found that the best banks for IRA CDs pay high rates, offer a variety of IRA CD terms, and don't charge maintenance fees.

While interest rates are an important aspect of any online bank account, several offer the same annual percentage yields (APYs). To differentiate between them, we also considered minimum deposit and balance requirements, mobile apps, and other standout features.