Best IRA CD Rates of September 2024: Grow Your Retirement Fund

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IRA certificates of deposit (CDs) might be a good option if you expect to retire in a few years and want a safe place to grow money.

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

• Connexus Credit Union IRA Share Certificates: 3.41% to 5.15% APY
• Lafayette Federal Credit Union IRA Fixed-Rate Certificate: 4.32% to 5.04% APY
• Consumers Credit Union IRA CDs: 0.50% to 5.00% APY
• NASA Federal Credit Union IRA CD: 3.75% to 4.99% APY
• Delta Community Credit Union IRA CDs: 3.85% to 4.95% APY
• Ally IRA High Yield CD: 3.00% to 4.90% APY
• Synchrony IRA CD: 0.25% to 4.80% APY
• Wells Fargo IRA CD: 0.01% to 4.76% 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.

Connexus Credit Union IRA Share Certificates

Connexus Credit Union's CD rates are strong. Its best CD rate is its 17-month special, so if you're interested in an unconventional CD term length, Connexus might be a good choice for you. In addition to IRA CDs, Connexus also offers traditional IRAs, Roth IRAs, and IRA savings accounts.

Connexus has a very large minimum opening deposit of $5,000. In addition, interest only compounds quarterly. If you're interested in opening an IRA CD with less than $5,000, or want interest that compounds more frequently, one of our other choices might be a better pick for you.

Anyone in the U.S. can join Connexus as long as they join the Connexus Association for a one-time $5 donation.

Minimum opening deposit: $5,000

Term options: 1 year to 5 years

Early withdrawal penalties: The penalties for early withdrawal are as follows:

• 90 days interest for 1-year CDs
• 180 days interest for a CD term of 1 year to 5 years
• 1 year of interest for 5-year CDs

Connexus Credit Union Review

Lafayette Federal Credit Union Fixed-Rate IRA CD

Lafayette Federal Credit Union has good rates on its fixed-rate IRA CDs. It also offers a few variable-rate CDs, although those offer lower rates. All of its fixed-rate IRA CDs have a low $500 minimum opening deposit.

Lafayette Federal Credit Union's early withdrawal penalties are on the high end. If you think there's a chance you'll need to withdraw your money before the end of the term, you might want to go with another financial institution.

Minimum opening deposit: $500 APY

Term options: 1 year to 5 years

Early withdrawal penalties: The penalties for early withdrawal are as follows:

• 180 days of interest for 1-year CDs
• 270 days of interest for 2-year CDs
• 360 days of interest for 3-year CDs
• 480 days of interest for 4-year CDs
• 600 days of interest for 5-year CDs

Consumers Credit Union IRA Certificate

Consumers Credit Union offers both regular IRA certificates and jumbo and super jumbo IRA certificates.

Rates for super jumbo certificates go as high as 5.20% APY, so if you're interested in opening a jumbo CD with at least $250,000, Consumers Credit Union might be a good choice. If you aren't looking for a jumbo CD, Consumer Credit Union's regular IRA certificates have a lower-than-average minimum opening deposit of $250.

Keep in mind, however, that Consumers' NCUA insurance only offers insurance on up to $250,000 of your funds per depositor, per account type; if you put more than $250,000 in a super jumbo IRA CD, not all of your money will be covered in the low chance of the credit union failing.

Like all credit unions, Consumers Credit Union limits who can join it. However, Consumers makes it easier to join than most. To join, you'll just need to donate $5 to the Consumers Cooperative Association. While Consumers Credit Union is a credit union anyone can join, keep in mind that all of its branches are in Illinois. If you're not in Illinois and want to bank in person, you might want to go with another financial institution.

Minimum opening deposit: $250

Term options: 91 days to 5 years

Early withdrawal penalties: Consumers Credit Union IRA certificates have the following early withdrawal penalties:

• 60 days interest for terms of 1 year or less
• 120 days interest for terms over 1 year

Consumers Credit Union Review

NASA Federal Credit Union IRA Certificate

 

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

Delta Community Credit Union IRA CDs

Delta Community Credit Union offers both regular and IRA CDs. Its IRA CDs have similar requirements and terms as its regular CDs, but they don't offer a 6-month term. Its IRA CDs offer strong rates. Its 1-year CD has the strongest rate, at 4.95% APY. Its CDs also come with slightly lower-than-average early withdrawal penalties, depending on the term you choose.

You'll have to meet some requirements to join Delta Community Credit Union. You're automatically eligible to join if you live or work in certain parts of Georgia, or if you work for one of the credit union's employer groups. You can also join by being a part of one of its affiliated associations, by being related to a current member, or by being a Delta Airlines employee who is a non-U.S. citizen and lives in one of several countries.

Minimum opening deposit: $1,000

Term options: 1 year to 5 years

Early withdrawal penalties: Delta Community Credit Union IRA certificates have the following early withdrawal penalties:

• 60 days of interest for terms of 6 months
• 90 days of interest for terms of 1 year
• 180 days of interest for terms of 2 years to 3 years
• 270 days of interest for terms of 5 years

Delta Community Credit Union Review

Ally IRA High-Yield CD and Ally IRA Raise Your Rate CD

Ally offers two types of IRA CDs: Ally IRA High Yield CD and Ally IRA Raise Your Rate CD. High Yield CDs lock in your rate for the entire term, but with Raise Your Rate CDs, you have the option to increase your APY (Annual Percentage Yield) if Ally's rates go up. You can increase your APY once during a 2-term and twice during a 4-year term.

All Ally IRA CDs are available as SEP, Traditional, or Roth IRAs. It's one of the few banks that allows you to open an IRA CD with no minimum deposit, and its early withdrawal penalties are lower than most competitors' penalties.

The Ally IRA Raise Your Rate CD only come with 2-year and 4-year terms, and the Ally IRA High Yield CD doesn't include 2-year or 4-year terms.

Minimum opening deposit: $0

Term options: 3 months to 5 years

Early withdrawal penalties:Ally offers standard penalties for early withdrawals of your principal balance, as follows:

• 60 days interest penalty for a CD term of 24 months or less
• 90 days interest penalty for a CD term of 25 months to 36 months
• 120 days interest penalty for a CD term of 37 months to 48 months
• 150 days interest penalty for a CD term of 49 months or more

Ally Bank Review

Synchrony IRA CD

At Synchrony, you can open a Traditional IRA or Roth IRA. Its most competitive rate is for 9-month CD. The minimum opening deposit for Synchrony IRA CDs is also $0. 

Although Synchrony has a variety of term lengths overall, you can find ones longer than 5 years elsewhere. 

Minimum opening deposit: $0

Term options: 3 months to 5 years

Early withdrawal penalties: Synchrony offers standard penalties for early withdrawals of your principal balance, as follows:

• 90 days interest penalty for a CD term of under 12 months
• 180 days interest penalty for a CD term of 12 months to 48 months
• 365 days interest penalty for a CD term of more than 48 months

Synchrony Bank Review

Wells Fargo IRA CD

Wells Fargo offers strong rates on several IRA CDs, although not all of its IRA CDs' rates are high. 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

Wells Fargo Bank 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:

NASA Federal Credit Union has an A rating from the BBB because of a few unresolved customer complaints.

Ally has an A rating from the BBB because of a few unresolved customer complaints.

Synchrony has an NR rating from the BBB because it's in the process of responding to previously closed complaints.

Wells Fargo has an F rating from the BBB because it hasn't responded to several complaints and has had government action taken against it.

Synchrony has also been involved in a couple of recent public controversies. In 2023, Synchrony was required to pay $2.6 million in a settlement when accused of calling customers about bank accounts they didn't have.

In 2021, the bank was also required to pay $3.5 million in a settlement when accused of making unreasonable phone calls to debtors living in California.

Wells Fargo has also been involved in multiple recent controversies. In December 2022, the Consumer Financial Protection Bureau required Wells Fargo to pay over $3.7 billion. The CFPB says that the bank wrongfully charged fees that led to thousands of customers losing their cars and homes. The CFPB also says that the bank charged wrongful overdraft fees on checking and savings accounts.

In 2021, Wells Fargo entered into a cease and desist order with the Office of the Comptroller of the Currency. The OCC says that the bank engaged in unsafe or unsound practices related to loss mitigation. The OCC also required Wells Fargo to pay $250 million.

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.

IRA CD FAQs

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.

BI

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 theaverage 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 with lifelaidout® 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.

See our bank account rating methodology to learn more about how we rate bank accounts.

Laura Grace Tarpley, CEPF

Personal Finance Reviews Editor

Laura Grace Tarpley (she/her) is an expert in mortgage rates, refinance rates, lenders, bank accounts, and borrowing and savings tips for Personal Finance Insider. She worked on  Business Insider's "The Road to Home" series, which won a Silver award from the National Associate of Real Estate Editors.She has written about personal finance for over seven years. Before joining the Business Insider team, she was a freelance finance writer for companies like SoFi and The Penny Hoarder, as well as an editor at FluentU.

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Kit Pulliam

Banking reporter

Kit Pulliam (they/them) is a banking expert who specializes in certificates of deposit, savings accounts, and checking accounts. They’ve been reporting, editing, and fact-checking personal finance stories for more than four years. ExperienceIn college, Kit worked as an undergraduate research assistant in a psychology lab. While there, they found that they were passionate about writing and helping others write about topics that matter.Before Business Insider, Kit was an editorial specialist for Tax Analysts, diving into the tax code to help readers get the best information about a confusing but necessary subject.They find banking similar to taxes in that way: There are some things everyone needs to know because just about everyone needs to work with a bank — and you don’t want to end up with an account that doesn’t serve your needs.As interest rates change, they enjoy the fast pace of reviewing rates for products like CDs and high-yield savings, which can change daily and have a direct impact on readers’ money.Their work has been featured in Business Insider and MSN. They were part of the My Financial Life series with Business Insider.ExpertiseTheir expertise includes:

• Certificates of deposit
• Savings accounts
• Checking accounts
• CD rates
• Bank reviews

EducationKit is an alumnus of Vanderbilt University, where they studied English and psychology and received the Jum C. Nunnally Honors Research Award for their senior thesis.Outside personal finance, Kit enjoys reading, film, video games, and cross stitching. They are based in the DC area.

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Evelyn He

Compliance and Operations Associate

Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.

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