If you're planning on retiring soon, an IRA CD can be a good way to build up some extra money for retirement.
An IRA CD is not the same as a regular CD. If you're looking for a regular CD that isn't geared toward retirement, check out our best CD rates guide instead.
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
- Credit Human IRA CDs: up to 4.55% APY
- Citi IRA CD: 0.05% to 4.40% APY
- NASA Federal Credit Union IRA CD: 4.00% to 4.39% APY
- America First Credit Union IRA Certificate: 4.10% to 4.35% APY
- Quorum Federal Credit Union IRA Term Savings: 2.20% to 4.35% APY
- EFCU Financial IRA Certificates: 3.85% to 4.35% APY
- Wells Fargo IRA CD: 0.01% to 4.26% APY
- Signature Federal Credit Union IRA Certificate: 4.01% to 4.20% 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.
Credit Human Federal Credit Union IRA Certificate
up to 4.55%
$500
- High interest rate
- Low minimum opening deposit
- High early withdrawal penalties
- Branches primarily in San Antonio, Texas
- To join Credit Human, you or a family member must be an employe of an employer or organization partner; live, work, worship or attend school in a San Antonio, TX or New Orleans, LA service area; study at a trade school, college or university partner; are a veteran, retiree, or active duty member of the US Armed Forces or National Guard; or become a member of the American Consumer Council
- Early withdrawal penalties (the greater of $50 or an amount equal to the number of days' interest): 90 days of interest for terms of 3 months; 180 days of interest for terms of 6 months; 270 days of interest for terms of 12 months; 365 days of interest for terms of 36 months; 730 days of interest for terms of 60 months; 1,095 days of interest for terms of 84 or 120 months
- Federally insured by the NCUA
Credit Human IRA CDs are competitive for most of their term lengths. Credit Human also offers IRA certificates with term lengths significantly longer than standard, so if you're hoping to open an IRA CD with a term length as long as 10 years, Credit Human might be a good choice for you.
Credit Human is a credit union, so it has some requirements for who can join. Luckily, Credit Human is easier to join than most. The easiest way to join is to become part of the American Consumer Council, but you can also join by living in San Antonio and New Orleans, by being an employee or member of a Select Group, or by having a family member who's a part of Credit Human, among other methods.
Minimum opening deposit: $500
Term options: 3 months to 10 years
Early withdrawal penalties: Credit Human Federal Credit Union IRA certificates have the following early withdrawal penalties:
- 90 days of interest for terms up to 3 months
- 180 days of interest for terms more than 3 months and up to 6 months
- 270 days of interest for terms more than 6 months and up to 1 year
- 365 days of interest for terms more than 1 year and up to 3 years
- 730 days of interest for terms more than 3 years and up to 5 years
- 1,095 days of interest for terms of 7 to 10 years
Citi IRA CDs
0.05% to 4.40%
$250
- Range of CD terms
- Relatively low early withdrawal penalties
- $250 minimum opening deposit
- Rates vary depending on term
- Must visit a branch to deposit more than $10,000
- BBB gives Citi an F in trustworthiness
- Terms ranging from 3 months to 5 years
- Early withdrawal penalties range from 90 to 180 days of interest
- $250 opening deposit
Citi offers IRA CDs with a wide range of term lengths. Several of its IRA CDs, such as its 3-month IRA CD, offer high rates. Citi has a low minimum opening deposit for its IRA CDs, which can be helpful if you want to open an IRA CD with a small amount of money.
Some of Citi's IRA CDs offer rates as low as 0.05% APY. Before you commit to a Citi IRA CD, make sure the term length you're interested in has a high interest rate.
Minimum opening deposit: $250
Term Options: 3 months to 5 years
Early withdrawal penalties: Citi IRA CDs have the following early withdrawal penalties:
- 90 days of interest for terms of 1 year or less
- 180 days of interest for terms of greater than 1 year
NASA Federal Credit Union IRA Certificate
4.00% to 4.39%
$50 to $10,000
- High interest rates
- Low minimum opening deposit on some terms
- Variety of terms, including bump-up and add-on options
- Interest compounds monthly, not daily
- Standard-to-high early withdrawal penalties
- Anyone can join NASA FCU; the credit union will provide a complimentary 1-year membership to the National Space Society, which makes you eligible to join
- You’re also eligible to join NASA FCU if you are a current employee or retiree of NASA Headquarters, National Academy of Science, or any NASA Center or Facility; you are an employee/member of a partner organization; or a relative or household member is already a NASA FCU member
- Terms range from 6 months to 5 years
- Minimum deposits: $1,000 for most terms; $10,000 for 9-month, 15-month, and 49-month terms
- Early withdrawal penalties: 182 days of dividends on terms of 24 months or less; 365 days of dividends on terms longer than 24 months
- Interest compounded and paid monthly
- Federally insured by the NCUA
NASA Federal Credit Union 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
America First Credit Union IRA Certificate
4.10% to 4.35%
$500
- Competitive APY
- $500 opening deposit
- Low early withdrawal penalties
- No terms over 5 years
- Interest compounded monthly, not daily
- Membership restricted to certain counties in the West
- Membership restricted to certain parts of the West
- Term lengths ranging from 3 months to 5 years
- Early withdrawal penalty of 60 days interest for terms of 12 months or less; 180 days interest for terms over 12 months
- Interest compounded monthly and paid monthly
- Federally insured by the NCUA
America First Credit Union offers good rates on its CDs, especially short-term CDs. It also offers CDs for each month between 3 months and 60 months. Most banks and credit unions don't have that many term length options.
America First Credit Union limits who can join. Membership is available to people who live, work, study, worship, or volunteer in select counties of Arizona, Idaho, New Mexico, Nevada, Oregon, and Utah. You're also eligible to join if you work for a company on its Select Employer Group list or are a member of an affiliated association.
Minimum opening deposit: $500
Term options: 3 months to 5 years
Early withdrawal penalties: America First Credit Union IRA certificates have the following early withdrawal penalties:
- 60 days interest for terms of 3 months to 12 months
- 180 days interest for terms of 13 months to 5 years
America First Credit Union Review
Quorum Federal Credit Union IRA Term Savings
2.20% to 4.35%
$1,000
- Competitive interest rate on select CD terms
- Standard-to-low early withdrawal penalties
- Standard CD terms
- $1,000 minimum opening deposit
- Interest compounded monthly, not daily
- Online credit union with 1 location in NY
- Terms range from 3 months to 5 years
- To become a member, you or a family must work at a Select Employee Group OR you must join the American Consumer Council or Select Savers Club
- Earn an additional 0.10% APY on account balances over $100,000
- Early withdrawal penalties: 1% of the amount withdrawn for terms between 2 months and 11 months; 2% of the amount withdrawn for terms between 1 year and 2 years; 3% of the amount withdrawn for terms over 25 months
- Interest compounded and deposited monthly
- NCUA insured
Quorum Federal Credit Union offers a good rate on its IRA term savings. They also double as jumbo CDs: if you put over $100,000 in the account, you'll receive a small boost to your interest rate. If you're looking for an IRA CD that's also a jumbo CD, this might be a good choice for you.
Like all credit unions, Quorum Federal Credit Unions has limits on who can join. Luckily, Quorum is easier to join than most. The easiest way to join is to become an American Consumer Council member, but you can also join by becoming a Select Savers Club member, working for a select employee group, or being a family member of someone who's already part of Quorum.
Minimum opening deposit: $1,000
Term options: 3 months to 5 years
Early withdrawal penalties: Quorum Federal Credit Union IRA certificates have the following early withdrawal penalties:
- 1% of the amount withdrawn, never to exceed the original principal, for terms from 2 to 11 months
- 2% of the amount withdrawn, never to exceed the original principal, for terms from 1 year to 2 years
- 3% of the amount withdrawn, never to exceed the original principal, for terms of 25 months and over
Quorum Federal Credit Union Review
EFCU Financial IRA Certificate
no monthly service fee
3.85% to 4.35%
$500
- High APY
- Standard early withdrawal penalties
- $500 minimum opening deposit
- Interest compounded monthly instead of daily
- Can become a member if you open a checking or savings account
- Credit union offers CD terms ranging from 6 months to 5 years
- For CD terms of 1 year or less, the early withdrawal penalty is 90 days of interest
- Interest is compounded and deposited monthly
- Federally insured by the NCUA
EFCU Financial is a credit union that offers strong rates on its IRA certificates. You can also get jumbo CDs at the credit union. If you put at least $100,000 in your CD, you'll earn an extra 0.10% APY with a jumbo CD. Its regular IRA certificates have a lower-than-average minimum opening deposit of $500.
Since EFCU Financial is a credit union, it has eligibility requirements that limit who can join. The easiest way to join is to donate to the Louisiana Wildlife Federation or The Arc of Baton Rouge as part of the application. You can also join if you live, work, worship, or attend school in certain parts of Louisiana or by having a family member who's part of the credit union.
Minimum opening deposit: $500
Term options: 6 months to 5 years
Early withdrawal penalties: The penalties for early withdrawal are as follows:
- 90 days of interest for terms of 1 year or less
- 180 days of interest for terms of more than 1 year to 5 years
Wells Fargo IRA CD
0.01% to 4.26%
$1,000 to $2,500
- Interest compounded daily
- Choose how often your interest is paid
- Standard early withdrawal penalties
- Low APY
- Up to $2,500 minimum deposit
- Earn the Relationship APY when linked to a Prime Checking, Premier Checking, or Private Bank Interest Checking account
- Early withdrawal penalty is 3 months interest for 3-month, 6-month, and 1-year CDs
- Interest compounded daily and paid monthly
- FDIC insured
Wells Fargo offers strong rates on its special IRA CDs, but its regular IRA CDs' rates aren't as competitive. 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
Signature Federal Credit Union IRA Certificate
4.01% to 4.20%
$500
- Competitive APY
- Traditional or Roth IRA
- $500 opening deposit
- High early withdrawal penalties
- Interest compounded monthly, not daily
- Become a Signature FCU member by depositing $5 into a Signature savings account
- Available as a Traditional or Roth IRA
- Terms ranging from 3 months to 5 years
- Locks in the rate for the duration of the term
- Interest compounded monthly and paid monthly
- 45 days - 900 days interest early withdrawal penalty
Signature Federal Credit Union offers strong rates on its IRA CDs. Its IRA CDs can be traditional, Roth, or ESA (educational) IRAs. If you're interested in opening an educational IRA, Signature might be a good choice for you.
However, Signature's CDs compound monthly, not daily. If you're interested in a CD that compounds daily, you might want to look elsewhere.
All U.S. residents can join Signature Federal Credit Union by joining the American Consumer Council for free.
Minimum opening deposit: $500
Term options: 3 months to 5 years
Early withdrawal penalties: The penalties for early withdrawal are as follows:
- No penalty for a CD term of 3 months to 1 year
- 180 days interest for a CD term of 18 months to 4 years
- 1 year of interest for a 5-year CD
Signature Federal Credit Union Review
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:
| Institution | BBB grade |
| Credit Human Federal Credit Union | A- |
| Citi | F |
| America First Credit Union | A+ |
| Quorum Federal Credit Union | A+ |
| EFCU Financial | A+ |
| NASA Federal Credit Union | A |
| Wells Fargo | F |
| Signature Federal Credit Union | B- |
Credit Human has an A- rating from the BBB because it hasn't resolved a few customer complaints.
NASA Federal Credit Union has an A rating from the BBB because of a few unresolved customer complaints.
Citi has an F rating from the BBB because it hasn't responded to or resolved many complaints filed against the business.
Wells Fargo has an F rating from the BBB because it hasn't responded to several complaints filed against the business.
Signature Federal Credit Union has a B- rating from the BBB because it hasn't responded to a few customer complaints.
Citi and Wells Fargo have been involved in a few public controversies.
In November 2023, the Consumer Financial Protection Bureau claimed Citi intentionally discriminated against Armenian-American credit card applicants. The CFPB ordered the bank to pay $25.9 million in fees and to applicants who were impacted.
In addition, Citi is currently being sued for sexual harassment by a managing director at the company, Ardith Lindsey. Citi hasn't admitted to any wrongdoing, and this case is ongoing.
In December 2024, the CFPB sued three banks, including Wells Fargo, for not doing enough to prevent Zelle fraud. The CFPB says Wells Fargo failed to properly investigate complaints and reimburse customers.
In December 2022, the CFPB required Wells Fargo to pay $3.7 billion. The CFPB says that Wells Fargo mismanaged auto loans, mortgages, and deposit accounts by foreclosing on homes, illegally repossessing vehicles, and incorrectly assessing fees and interest, among other things.
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 unions have 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.
You might also want to consider going with an eco-friendly bank or community development financial institution for your IRA CD. Both types of financial institutions use the money you put in the bank for good; eco-friendly banks help the environment, while CDFIs provide financial services to underserved communities. Using one of these banks can be an easy way to support causes you believe in.
Best IRA CD FAQs
Frequently, a bank's IRA CD rates are the same as a bank's traditional CD rates, but sometimes IRA CDs offer lower rates than comparable regular CDs.
No, not all banks and credit unions offer IRA CDs. Check with the financial institution you're interested in to see if they offer IRA CDs.
Yes, you can have both a traditional and Roth IRA CD. You'll need to be mindful of contribution limits, though.
For the most part, the early withdrawal penalties you get with IRA CDs will be the same as for regular CDs. However, if you're withdrawing from IRA CDs before retirement age, you might deal with tax penalties.
Interest rates are a major consideration when opening IRA CDs, but they aren't the only consideration. Also, consider the reputation of the financial institution, minimum opening deposit requirements, and specialty offerings, among other factors.
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, CFP® professional and vice president of coaching strategy at OfColor:
"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 the average 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, Business Insider:
"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, CFP® professional 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."
Methodology: How We Chose the Best IRA CDs
At 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.
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.
We use a weighted average to get our star rating, which means we weigh certain features, like interest rates and fees, at a higher weight percentage than others. We understand that these areas can more heavily impact a person's overall banking experience.
We rate bank products on a scale from one to five stars. A one-star rating is the lowest rating a CD can have. It indicates that the CD needs significant improvement. A five-star rating is the highest rating possible; it shows that the CD is a superior option. See our bank account rating methodology to learn more about how we rate bank accounts.