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7 Best IRA CD Rates of 2022

Feb 9, 2022

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An IRA CD is an IRA — an individual retirement account — with certificates of deposit. The best IRA CD rates can help you see what guaranteed returns you could get for retirement funds stored at a bank. Unlike other types of investments, they don’t come with much risk.

Why trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial accounts that work best for you. See our criteria for evaluating banks and credit unions.

» Learn more about other safe investment options

IRA CDs provide guaranteed returns, but stocks and other investment options at brokerage firms can provide much higher yields. Experts recommend an IRA CD make up a modest portion of an investment portfolio. If you’re an investor decades from retirement, experts recommend putting minimal, if any, funds into CDs and allocating all of your IRA to higher-yielding choices such as stock mutual funds.

If IRA CDs make sense for your retirement plans, banks and credit unions generally offer up to three types of IRAs: traditional IRAs that tax money upon withdrawal, Roth IRAs that tax contributions the year they’re added and let earnings be tax-free, and SEP IRAs that have higher limits than the other types but are designated for self-employed savers and small businesses.

Best IRA CD Rates

Discover Bank IRA CD

5.0

NerdWallet rating 
Discover Bank IRA CD

Minimum deposit

$2,500

Member FDIC

1-year APY

2.30%

3-year APY

2.70%

5-year APY

3.20%

3-year APY

2.70%

5-year APY

3.20%

Why we like it

Discover has terms ranging from three months to 10 years, which is more than what most banks offer. Like its regular CDs, Discover’s IRA CD rates are competitive, though the $2,500 minimum to open CDs is somewhat hefty.

Read Full Review

Connexus Credit Union CD

4.5

NerdWallet rating 
Connexus Credit Union CD

Minimum deposit

$5,000

Federally insured by NCUA

1-year APY

1.76%

3-year APY

2.36%

5-year APY

2.96%

3-year APY

2.36%

5-year APY

2.96%

Why we like it

The easy-to-join credit union has a hefty minimum of $5,000 but offers a solid array of rates for IRA CDs. It also has IRA savings accounts with no minimum deposit required.

Read Full Review

Synchrony Bank CD IRA

5.0

NerdWallet rating 
Synchrony Bank CD IRA

Minimum deposit

$0

Member FDIC

1-year APY

2.30%

3-year APY

2.80%

5-year APY

3.25%

3-year APY

2.80%

5-year APY

3.25%

Why we like it

Synchrony offers traditional and Roth IRA plans. There's no minimum deposit requirement for its IRA CDs, and the rates are competitive.

Read Full Review

Ally Bank IRA CD

5.0

NerdWallet rating 
Ally Bank IRA CD

Minimum deposit

$0

Member FDIC

1-year APY

2.30%

3-year APY

2.70%

5-year APY

2.90%

3-year APY

2.70%

5-year APY

2.90%

Why we like it

Ally offers a variety of CD types and terms, including IRA CDs with competitive rates and no opening minimums. Ally’s IRAs can be traditional, Roth or SEP.

Read Full Review

Alliant Credit Union CD

4.0

NerdWallet rating 
Alliant Credit Union CD

Minimum deposit

$1,000

Federally insured by NCUA

1-year APY

2.40%

3-year APY

2.80%

5-year APY

3.25%

3-year APY

2.80%

5-year APY

3.25%

Why we like it

Alliant's certificates, the credit union equivalent of CDs, have solid rates with low minimum deposit requirements. Alliant offers three types of IRA CDs to choose from: traditional, Roth or SEP.

Read Full Review

Service Credit Union IRA CD

4.5

NerdWallet rating 
Service Credit Union IRA CD

Minimum deposit

$500

Federally insured by NCUA

1-year APY

0.50%

3-year APY

0.70%

5-year APY

0.85%

3-year APY

0.70%

5-year APY

0.85%

Why we like it

The military-focused credit union extends eligibility for membership to anyone who joins the American Consumer Council. The IRA certificate rates are solid, and the $500 minimum opening requirement is low.

Read Full Review

PenFed Credit Union IRA CD

5.0

NerdWallet rating 
PenFed Credit Union IRA CD

Minimum deposit

$10,000

Federally insured by NCUA

1-year APY

1.70%

3-year APY

2.60%

5-year APY

2.95%

3-year APY

2.60%

5-year APY

2.95%

Why we like it

PenFed, originally focused on the military community, is now open to anyone to join. Its IRA certificates have competitive yields, a somewhat low opening minimum, and can be part of one of three types of IRAs: traditional, Roth and SEP.

Federally insured by NCUA.

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: 0.50% - 3.20% APY, 3 months - 10 years, $2,500 minimum to open.

  • Connexus Credit Union: 1.76% - 2.96% APY, 1 - 5 years, $5,000 minimum to open.

  • Synchrony Bank: 1.00% - 3.25% APY, 3 months - 5 years, no minimum to open.

  • Ally Bank: 0.75% - 2.90% APY, 3 months - 5 years, no minimum to open.

  • Alliant Credit Union: 2.40% - 3.25% APY, 1 - 5 years, $1,000 minimum to open.

  • Service Credit Union: 0.40% - 0.85% APY, 3 months - 5 years, $500 minimum to open.

  • Pentagon Federal Credit Union: 1.70% - 3.05% APY, 1 - 7 years, $1,000 minimum to open.

Last updated on February 9, 2022

You may also like these

People often identify opening a savings account as their next money move.

Discover Bank Online Savings

5.0

NerdWallet rating 
Discover Bank Online Savings

APY

1.50%

With $0 min. balance for APY

Bonus

$200

Requirements to qualify

at Discover Bank, Member FDIC

CIT Bank Savings Connect

4.5

NerdWallet rating 
CIT Bank Savings Connect

APY

1.90%

With $100 min. balance for APY

at CIT Bank, Member FDIC

SoFi Checking and Savings

5.0

NerdWallet rating 
SoFi Checking and Savings

APY

1.80%

With $0 min. balance for APY

Bonus

$300

Earn up to $300 with direct deposit. Terms apply.

at SoFi, Member FDIC

Methodology

We selected financial institutions with a focus on the highest CD rates available for CDs designed for IRAs, as well as nationwide membership eligibility, when relevant.

We took a close look at over 80 financial institutions and financial service providers, including the largest U.S. banks based on assets, internet search traffic and other factors; the nation’s largest credit unions, based on assets and membership; and other notable and/or emerging players in the industry. We rated them on criteria including annual percentage yields, minimum balances, fees, digital experience and more.

Frequently asked questions