8 Best IRA CD Rates of 2023
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ALSO CONSIDER: Best CD rates || Best IRA accounts || Best Roth IRA accounts
An IRA CD is an IRA — an individual retirement account — that holds 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. If you’re an investor decades from retirement, experts recommend putting minimal, if any, funds into CDs and allocating more of your IRA to stocks and bonds.
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 for self-employed savers and small businesses.
ALSO CONSIDER: Best CD rates || Best IRA accounts || Best Roth IRA accounts
An IRA CD is an IRA — an individual retirement account — that holds 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. If you’re an investor decades from retirement, experts recommend putting minimal, if any, funds into CDs and allocating more of your IRA to stocks and bonds.
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 for self-employed savers and small businesses.
So far, the Federal Reserve has continued to raise rates in 2023, which is good news for your bank account. Take advantage of rising rates with one of the federally insured accounts below.
8 Best IRA CD Rates
| Bank/institution | NerdWallet rating | Minimum deposit | 1-year APY | 3-year APY | 5-year APY | Learn more |
|---|---|---|---|---|---|---|
 Discover Bank IRA CD | $2,500 Member FDIC | 4.75% | 4.30% | 4.00% | Read review | |
 Connexus Credit Union IRA CD | $5,000 Federally insured by NCUA | 5.01% | 4.11% | 3.91% | Read review | |
 Synchrony Bank CD IRA | $0 Member FDIC | 4.75% | 4.30% | 4.00% | Read review | |
 Ally Bank IRA CD | $0 Member FDIC | 4.50% | 4.25% | 4.10% | Read review | |
 Alliant Credit Union IRA CD | $1,000 Federally insured by NCUA | 5.00% | 4.55% | 4.35% | Read review | |
 Service Credit Union IRA Certificate | $500 Federally insured by NCUA | 5.00% | 3.35% | 3.50% | Read review | |
 PenFed Credit Union IRA CD | $1,000 Federally insured by NCUA | 4.50% | 4.00% | 3.85% | Read review | |
 Self-Help Credit Union IRA CD | $500 Federally insured by NCUA | 4.08% | 4.24% | 4.34% | Read review |
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People often identify opening a savings account as their next money move.
Discover Bank Online Savings
APY
With $0 min. balance for APY
Bonus
Requirements to qualify
at Discover Bank, Member FDIC
SoFi Checking and Savings
APY
With $0 min. balance for APY
Bonus
Earn up to $250 with direct deposit. Terms apply.
at SoFi, Member FDIC
UFB Premier Savings
APY
With $0 min. balance for APY
at UFB Direct, Member FDIC
$2,500
Member FDIC
4.75%
4.30%
4.00%
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.
$5,000
Federally insured by NCUA
5.01%
4.11%
3.91%
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.
$0
Member FDIC
4.75%
4.30%
4.00%
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. Synchrony IRA CDs include an 11-month no-penalty CD and a two-year bump-up CD; the latter allows for a rate increase during the term.
$0
Member FDIC
4.50%
4.25%
4.10%
Why We Like It
Ally offers a variety of CD types and terms, including IRA CDs with competitive rates and no opening minimums. The two- and four-year IRA CDs are also bump-up — or raise your rate — CDs, which allow for one or two rate increases during the term. Ally’s IRAs can be traditional, Roth or SEP.
$1,000
Federally insured by NCUA
5.00%
4.55%
4.35%
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.
$500
Federally insured by NCUA
5.00%
3.35%
3.50%
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.
$1,000
Federally insured by NCUA
4.50%
4.00%
3.85%
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 of $1,000, and can be part of one of three types of IRAs: traditional, Roth and SEP.
Federally insured by NCUA.
$500
Federally insured by NCUA
4.08%
4.24%
4.34%
Why We Like It
Self-Help Credit Union is a community development credit union with branches in four states on the East Coast, but membership is available nationwide with a one-time $5 fee to join the credit union’s affiliated nonprofit. The credit union’s IRA certificates have a low minimum deposit requirement of $500 and can be two types of IRAs: traditional and Roth.
» Want to see more CD options? Check out our list of the best CD rates overall
Best IRA CD rates 2023
Discover Bank: APYs: 4.75% (1 year); 4.30% (3 years); 4.00% (5 years); Term range: 3 months - 10 years; Minimum to open: $2,500.
Connexus Credit Union: APYs: 5.01% (1 year); 4.11% (3 years); 3.91% (5 years); Term range: 1 - 5 years; Minimum to open: $5,000.
Synchrony Bank: APYs: 4.75% (1 year); 4.30% (3 years); 4.00% (5 years); Term range: 3 months - 5 years; Minimum to open: None.
Ally Bank: APYs: 4.50% (1 year); 4.25% (3 years); 4.10% (5 years); Term range: 3 months - 5 years; Minimum to open: None.
Alliant Credit Union: APYs: 5.00% (1 year); 4.55% (3 years); 4.35% (5 years); Term range: 3 months - 5 years; Minimum to open: $1,000.
Service Credit Union: APYs: 5.00% (1 year); 3.35% (3 years); 3.50% (5 years); Term range: 3 months - 5 years; Minimum to open: $500.
Pentagon Federal Credit Union: APYs: 4.50% (1 year); 4.00% (3 years); 3.85% (5 years); Term range: 6 months - 7 years; Minimum to open: $1,000.
Self-Help Credit Union: APYs: 4.08% (1 year); 4.24% (3 years); 4.34% (5 years); Term range: 3 months - 5 years; Minimum to open: $500.
What is an IRA CD?
An IRA CD is an investment account that holds CDs designated for retirement. You can generally open an IRA plan at a bank or brokerage that holds multiple CDs or other interest-bearing accounts. An IRA CD can be three types: traditional IRA with pre-tax money, Roth IRA with after-tax money (and tax-free earnings), and SEP IRA for self-employed savers and small businesses. (See more details about IRAs.)
IRA vs. CD: What's the difference?
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.
Are CD rates going up?
Yes. The Federal Reserve raised its rate multiple times in 2022, which has encouraged banks and credit unions to raise their rates as well. See more insight about current CD rates. You can also see how CDs compare to other low-risk investment options.
Last updated on February 3, 2023
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 90 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.
Financial institutions and providers surveyed are: Affirm, Alaska USA Federal Credit Union, All America Bank, Alliant Credit Union, Ally Bank, Amalgamated Bank, America First Credit Union, American Express National Bank, Andrews Federal Credit Union, Associated Bank, Axos Bank, Bank of America, Bank of the West, Bank5 Connect, Bank7, Barclays, Bask Bank, BMO, Boeing Employees Credit Union, Bread Savings, BrioDirect, Capital One, Charles Schwab Bank, Chase, Chime, CIBC U.S., CIT Bank, Citibank, Citizens, Citizens Bank, City First Bank, Commerce Bank, Community First Credit Union of Florida, ConnectOne Bank, Connexus Credit Union, Consumers Credit Union, Current, Delta Community Credit Union, Discover Bank, E*TRADE, Fifth Third Bank, First Foundation, First National Bank, First Republic Bank, First Tech Federal Credit Union, Flagstar Bank, FNBO Direct, GO2bank, Golden 1 Credit Union, Hope Credit Union, Huntington Bank, Industrial Bank, KeyBank, Lake Michigan Credit Union, LendingClub Bank, Liberty Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Nationwide (by Axos), Navy Federal Credit Union, NBKC, One, OneUnited Bank, Pentagon Federal Credit Union, PNC, Popular Direct, PurePoint Financial, Quontic Bank, Regions Bank, Revolut, Salem Five Direct, Sallie Mae Bank, Santander Bank, Scarlet, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, Self-Help Credit Union, Service Credit Union, SoFi, State Employees’ Credit Union of North Carolina, Suncoast Credit Union, Synchrony Bank, TAB Bank, TD Bank, TIAA Bank, Truist Bank, U.S. Bank, UFB Direct, Union Bank, Upgrade, USAA Bank, Varo, Vio Bank, Wells Fargo and Zynlo Bank.
To recap our selections...
NerdWallet's 8 Best IRA CD Rates of 2023
Frequently asked questions
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. One big difference is that there are annual contribution limits to IRAs, which include IRA CDs. The limit for 2023 is $6,500 for people under 50 years old and $7,500 for people 50 and older, up $500 from the limits in 2022.
» 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 (or $500,000 for joint accounts).
Younger investors can afford to take more risk with their investments, so they generally 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-yield options, see our list of best IRA accounts.
You have two main options: You can transfer or roll over money from another retirement account, such as an IRA or 401(k), or add new money. If you choose the second option, note that IRAs have annual contribution limits: $6,500 if you’re under 50 and $7,500 for those 50 or older. These are the combined limits for all IRAs you own and add new money to in 2023.
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 (such as 10% of the withdrawal). For a Roth IRA, the penalty only occurs with an early withdrawal of earnings, not contributions.
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 — but not the earnings — at any time without an IRS penalty.
Generally, yes. Banks, especially those that don’t have investment accounts, may provide IRAs with limited choices. For example, a bank IRA might offer only CDs and other types of savings accounts. IRAs at brokerages can hold a wider variety of investments, including stocks and bonds, which tend to provide higher returns over the long term.
No, there’s no risk of losing money in an IRA CD like there is with the stock market. However, if you decide to withdraw early from an IRA CD, you might have to pay up to two penalties for the privilege: a CD penalty from the bank and an IRA tax penalty.
