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6 Best IRA CD Rates of 2020

Spencer TierneyJuly 1, 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.

Summary of Best IRA CD Rates of 2020

Discover Bank IRA CD

Discover Bank CD

1-year APY

0.60%

With $2,500 minimum balance

3-year APY

0.70%

With $2,500 minimum balance

5-year APY

0.80%

With $2,500 minimum balance

Minimum Balance

$2,500

Member FDIC


3-year APY

0.70%

With $2,500 minimum balance

5-year APY

0.80%

With $2,500 minimum balance

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 CD

Connexus Credit Union CD

1-year APY

0.61%

With $5,000 minimum balance

3-year APY

0.80%

With $5,000 minimum balance

5-year APY

0.91%

With $5,000 minimum balance

Minimum Balance

$5,000

Federally insured by the NCUA


3-year APY

0.80%

With $5,000 minimum balance

5-year APY

0.91%

With $5,000 minimum balance

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 360 IRA CD

Capital One CD

1-year APY

0.20%

With $0 minimum balance

3-year APY

0.30%

With $0 minimum balance

5-year APY

0.40%

With $0 minimum balance

Minimum Balance

$0

Member FDIC


3-year APY

0.30%

With $0 minimum balance

5-year APY

0.40%

With $0 minimum balance

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 CD IRA

Synchrony Bank CD

1-year APY

0.60%

With $2,000 minimum balance

3-year APY

0.75%

With $2,000 minimum balance

5-year APY

0.90%

With $2,000 minimum balance

Minimum Balance

$2,000

Member FDIC


3-year APY

0.75%

With $2,000 minimum balance

5-year APY

0.90%

With $2,000 minimum balance

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 IRA CD

Ally Bank CD

1-year APY

0.65%

With $0 minimum balance

3-year APY

0.75%

With $0 minimum balance

5-year APY

1.00%

With $0 minimum balance

Minimum Balance

$0

Member FDIC


3-year APY

0.75%

With $0 minimum balance

5-year APY

1.00%

With $0 minimum balance

Why we like it

Ally's IRA rates are competitive with those of other banks, and there's no minimum deposit requirement.

Read Full Review

Alliant Credit Union CD

Alliant Credit Union CD

1-year APY

0.55%

With $1,000 minimum balance

3-year APY

0.70%

With $1,000 minimum balance

5-year APY

0.75%

With $1,000 minimum balance

Minimum Balance

$1,000

Federally insured by the NCUA


3-year APY

0.70%

With $1,000 minimum balance

5-year APY

0.75%

With $1,000 minimum balance

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: 0.25% - 0.80% APY, 3 months - 10 years, $2,500 minimum to open

  • Connexus Credit Union: 0.61% - 0.91% APY, 1 - 5 years, $5,000 minimum to open

  • Capital One: 0.20% - 0.40% APY, 6 months - 5 years, no minimum to open

  • Synchrony Bank: 0.25% - 0.90% APY, 3 months - 5 years, $2,000 minimum to open

  • Ally Bank: 0.20% - 1.00% APY, 3 months - 5 years, no minimum to open

  • Alliant Credit Union: 0.55% - 0.65% 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.

Frequently asked questions