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6 Best IRA CD Rates November 2019

Spencer TierneyNovember 1, 2019

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Summary of Best IRA CD Rates November 2019

Bank1-year APY3-year APY5-year APYMinimum DepositLearn More
Discover

Discover

at Discover,

Member, FDIC

2.00%

2.05%

2.10%

$2,500

at Discover,

Member, FDIC

Connexus Credit Union

Connexus Credit Union

2.20%

2.50%

2.60%

$5,000

Capital One

Capital One

2.10%

1.65%

1.60%

$0

Synchrony Bank

Synchrony Bank

2.00%

2.10%

2.25%

$2,000

Ally Bank

Ally Bank

2.00%

1.95%

2.10%

$0

Alliant Credit Union

Alliant Credit Union

2.05%

2.15%

2.20%

$1,000

Bank1-year APY3-year APY5-year APYMinimum DepositLearn More
Discover

Discover

at Discover,

Member, FDIC

2.00%

2.05%

2.10%

$2,500

at Discover,

Member, FDIC

Connexus Credit Union

Connexus Credit Union

2.20%

2.50%

2.60%

$5,000

Capital One

Capital One

2.10%

1.65%

1.60%

$0

Synchrony Bank

Synchrony Bank

2.00%

2.10%

2.25%

$2,000

Ally Bank

Ally Bank

2.00%

1.95%

2.10%

$0

Alliant Credit Union

Alliant Credit Union

2.05%

2.15%

2.20%

$1,000

Discover

at Discover,

Member, FDIC

Discover

Discover
1-year APY 
2.00% 

With $2500 minimum balance

3-year APY 
2.05% 

With $2500 minimum balance

5-year APY 
2.10% 

With $2500 minimum balance

Minimum Balance 
$2,500 

Member, FDIC

at Discover,

Member, FDIC


3-year APY

2.05%

5-year APY

2.10%

Why we like it

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.

Read Full Review

Connexus Credit Union

Connexus Credit Union
1-year APY 
2.20% 

With $5000 minimum balance

3-year APY 
2.50% 

With $5000 minimum balance

5-year APY 
2.60% 

With $5000 minimum balance

Minimum Balance 
$5,000 

Member, NCUA


3-year APY

2.50%

5-year APY

2.60%

Why we like it

The easy-to-join credit union has a hefty minimum, but offers a solid array of rates for IRA CDs.

Read Full Review

Capital One

Capital One
1-year APY 
2.10% 

With $1 minimum balance

3-year APY 
1.65% 

With $1 minimum balance

5-year APY 
1.60% 

With $1 minimum balance

Minimum Balance 
$0 

Member, FDIC


3-year APY

1.65%

5-year APY

1.60%

Why we like it

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.

Read Full Review

Synchrony Bank

Synchrony Bank
1-year APY 
2.00% 

With $2000 minimum balance

3-year APY 
2.10% 

With $2000 minimum balance

5-year APY 
2.25% 

With $2000 minimum balance

Minimum Balance 
$2,000 

Member, FDIC


3-year APY

2.10%

5-year APY

2.25%

Why we like it

Synchrony offers traditional and Roth IRA plans. The minimum for their IRA CDs is lower than at some banks, and the rates are competitive.

Read Full Review

Ally Bank

Ally Bank
1-year APY 
2.00% 

With $0 minimum balance

3-year APY 
1.95% 

With $0 minimum balance

5-year APY 
2.10% 

With $25000 minimum balance

Minimum Balance 
$0 

Member, FDIC


3-year APY

1.95%

5-year APY

2.10%

Why we like it

Ally's IRA rates are competitive with those of other banks. There's no minimum deposit requirement, but the 18-month and 3-year CD rates each have three tiers. To earn the 3-year rate of 2.05%, the minimum deposit required is $5,000; to get the highest rate of 2.10%, you'll need $25,000.

Read Full Review

Alliant Credit Union

Alliant Credit Union
1-year APY 
2.05% 

With $1000 minimum balance

3-year APY 
2.15% 

With $1000 minimum balance

5-year APY 
2.20% 

With $1000 minimum balance

Minimum Balance 
$1,000 

Member, NCUA


3-year APY

2.15%

5-year APY

2.20%

Why we like it

Alliant's traditional and Roth IRA certificates, the credit union equivalent of CDs, have solid rates with low minimum deposit requirements.

Read Full Review

» 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: 0.35% - 2.20% APY, 3 months - 10 years, $2,500 minimum to open
  • Connexus Credit Union: 2.20% - 2.60% APY, 1 - 5 years, $5,000 minimum to open
  • Capital One: 0.60% - 1.60% APY, 6 months - 5 years, no minimum to open
  • Synchrony Bank: 0.75% - 2.25% APY, 3 months - 5 years, $2,000 minimum to open
  • Ally Bank: 0.75% - 2.25% APY, 3 months - 5 years, no minimum to open
  • Alliant Credit Union: 2.05% - 2.20% APY, 1 - 5 years, $1,000 minimum to open

Last updated on November 1, 2019

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.

To recap our selections...

NerdWallet's Best IRA CD Rates November 2019

Frequently asked questions

A certificate of deposit, or CD, is a type of savings account that requires people to put money away for a set period of time. That’s called the "term length," and it generally ranges from three months to five years. Longer terms tend to earn higher returns.

An IRA, or individual retirement account, is a tax-advantaged account that can hold different types of investments, including stocks, bonds and CDs.

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 this month’s top IRA CD rates.

(See more details about IRAs.)

IRA CDs earn interest just like standard CDs. Rates are generally fixed and quoted as an annual percentage yield, or APY, which shows the amount an account earns in one year, including compound interest. The higher the APY, the more your money will grow.

» See what CDs can earn with our CD calculator

IRA CDs tend to be a decent option for people looking for guaranteed returns on their retirement savings, especially if retirement is only a few years away. These CDs are useful for those who can’t stomach the risks that come with stocks or bonds. Money in a CD is federally insured up to $250,000.

Younger investors can afford to take more risk with their investments, so they wouldn't want to tie up retirement funds in CDs only, if at all. Current CD rates don't compare to the return that investments can make in the long term. To check out higher-yielding options, see our list of best IRA accounts.

You can transfer money from another retirement account, such as an IRA or 401(k), or add new money. If you choose the second option, keep in mind that IRAs have annual contribution limits: $5,500 if you’re under 50 and $6,500 for those 50 or older. These are the combined limits for all IRAs you own.

See this month’s top IRA CD rates.

You might face two penalties. Pulling money out of a CD before its term expires will likely result in an early withdrawal fee, which is typically a percentage of the interest earned. You could also face an IRS tax penalty.

This penalty could occur if you withdraw the money at the end of its term and deposit it into a non-retirement account without meeting a few requirements that qualify you for IRA distributions. For either a traditional or Roth IRA, you have to be older than 59 1/2, or you have to use the money for specific purchases, such as buying a home or funding higher education (see other exceptions). If it's a Roth IRA, you can withdraw your contributions at any time without an IRS penalty.

Generally, yes. Banks, especially those that don’t have investing accounts, may provide IRAs with limited choices. For example, a bank IRA might offer only CDs and money markets. IRAs at brokerages can hold a wider variety of investments, including stocks and bonds, which tend to provide higher returns over the long term.