The Best IRA CD Rates – September 2018
Perhaps you’ve decided to build a CD ladder within your IRA, or maybe you’re looking for a safe way to store your retirement cash for a specific period of time. Whatever the reason, you’re interested in getting an IRA CD and, understandably, want to know what products will give you the best rate of return. … Continue reading The Best IRA CD Rates – September 2018The post The Best IRA CD Rates – September 2018 appeared first on MagnifyMoney.
Posted — UpdatedYou can get an IRA CD with terms ranging from three months to more than six years, with interest rates generally increasing with the term length. There are lots of options, so we’ve rounded up the top IRA CD rates that are available right now for a variety of terms. You’ll select your IRA CD terms based on your CD-ladder master plan or whenever you’ll need access to your money.
The best IRA rates in September 2018
Term
Institution
APY
Minimum Deposit Amount
3 months
TIAA Bank
1.65%
$5,000
6 months
CommunityWide Federal Credit Union
2.15%
$2,000
12 months
Connexus Credit Union
2.50%
$5,000
18 months
Interior Credit Union
2.68%
$500
2 years
Justice Federal Credit Union
3.25%
$500
3 years
Salem Five
3.00%
$2,000
4 years
CommunityWide Federal Credit Union
3.20%
$2,000
5 years
Achieva Credit Union
4.00%
$500
3 Month IRA CD – TIAA Bank, 3 Month Yield Pledge IRA (Traditional, Roth)
Three-month regular CDs are earning an average interest rate of 0.36% APY currently. EverBank is exceeding that, with an interest rate of 1.65% APY with their 3-Month Yield Pledge IRA CD. With that APY and a $5,000 minimum deposit, you would earn $19.88 when the certificate matures.
6-Month IRA CD – CommunityWide Credit Union, 6 Month IRA (Traditional, Roth)
Six-month IRA CDs typically earn a little bit better, but they’re normally still not great. CommunityWide Federal Credit Union, however, is breaking that norm by offering the highest interest rate at 2.15% APY for deposits of $2,000 and over. That translates into earnings of $21.39 if you were only to deposit the minimum amount. Compare that to the average of all regular 6 month CDs, at 0.63%.
1-Year IRA CD Rates – Connexus Credit Union, 1 Year IRA (Traditional, Roth, CESA)
Regular one-year CDs earn an average interest rate of 1.00% APY. Connexus Credit Union, however, is offering a one-year IRA CD at 2.50% APY. You’ll need a $5,000 minimum deposit to earn $125.00 in interest once the CD matures.
18-Month IRA CD Rates – Interior Federal Credit Union, 18 Month IRA Certificate (Traditional, Roth, CESA)
18-month regular CDs earn an average interest rate of 1.23% APY. Interior Federal Credit Union on the other hand, is currently offering 2.68% APY on an 18-month IRA CD. This would translate into earnings of $20.23 with a minimum $500 deposit.
2-Year IRA CD Rates – Justice Federal Credit Union, 24 Month IRA Certificate Special w/ Checking – New Money (Traditional, Roth)
Two-year regular CDs earn an average interest rate of 1.32% APY. Justice Federal Credit Union, on the other hand, is currently offering 3.25% APY on a 2-year IRA CD. This would translate into earnings of $33.03 with a minimum $500 deposit.
3-Year IRA CD Rates – Salem Five, 36 Month IRA Special (Traditional, Roth, CESA, SEP)
Three-year regular CDs are earning an average interest rate of 1.52% APY currently. Salem Five is exceeding that, with an interest rate of 3.00% APY with their 36-month IRA CD. With those interest rates and a $2,000 minimum deposit, you would earn $185.45 when the certificate matures.
4-Year IRA CD Rates – CommunityWide Federal Credit Union, 48 Month Personal IRA
Four-year regular CDs are currently earning an average interest rate of 1.67% APY. CommunityWide Federal Credit Union claims the top interest rate for these IRA CDs, with an interest rate of 3.20% APY. You would earn $268.55 on this CD with a $2,000 minimum deposit.
5-Year IRA CD Rates – Achieva Credit Union – 60 Month IRA/457B (Traditional, Roth, CESA)
Five-year IRA CDs hold the top spot for interest rates out of any category on our list. National averages for a regular 5-year CD is 1.97% APY, however Achieva Credit Union outperforms the average with a 4.00% APY on its 5-year IRA CD for members. The minimum deposit is $500 to earn this APY. If you’re able to deposit more than $500, you may eligible for a higher APY. With a deposit of $25,000 you may be able to earn an APY of 4.10%. If you’re able to deposit $75,000, you may be able to earn 4.20% APY.
One item to note with this credit union: the rates may vary by region, so make sure you check to see if you’re eligible for the above rates in your location.
NCUA Insured
6+ Year IRA CD Rates – Air Force Federal Credit Union, 7 Year IRA (Traditional, Roth, CESA)
We’re starting to see these very-long-term IRA CDs offer higher interest rates than the shorter-term five-year IRA CDs. Air Force Federal Credit Union offers the highest term for their seven-year IRA CD, at 3.20% APY. That’s less than Achieva Credit Union which offers a 4.00% APY for a five-year IRA CD. Still, with Air Force Federal Credit Union’s seven-year IRA CD, you would earn $616.72 on a minimum deposit of $2,500 when the IRA CD matures.
3 questions to consider before opening an IRA CD
How do I invest in an IRA CD?Opening an IRA CD generally requires filling out a form or talking to a banker. You’ll have to have a way to fund your IRA CD, whether that’s rolling over an existing retirement account into an IRA CD or depositing cash into the product. The same limits that apply to IRA contributions apply to IRA CDs: $5,500 per year ($6,500 if you’re over age 50) of your own money across all your IRA accounts each year, and you can do a rollover once per year.
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