The Best IRA CD Rates – March 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 – March 2018The post The Best IRA CD Rates – March 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 March 2018
Term
Institution
APY
Minimum Deposit Amount
3 months
Bethpage Federal Credit Union
1.25%
$50
6 months
Ally Bank
1.60%
$5,000
12 months
First Internet Bank
2.07%
$1,000
18 months
Capitol Federal Savings Bank
2.27%
$500
2 years
U.S. Postal Service Federal Credit Union
3.00%
$250
3 years
EverBank
2.40%
$5,000
4 years
EverBank
2.50%
$5,000
5 years
Connexus Credit Union
3.00%
$5,000
Rates as of March 5, 2018
3 Month IRA CD – Bethpage Federal Credit Union, 3 Month IRA (Traditional, Roth)
Three-month IRA CDs typically offer the lowest interest rates of any IRA CD term. Bethpage offers the best rate of 1.25% APY and a minimum deposit of $50. That rate is well above the national average.
6-Month IRA CD – Ally Bank, IRA High Yield 6-Month CD
Six-month IRA CDs typically earn a little bit better, but they’re still not great. Ally Bank offers the highest interest rate at 1.60% APY for deposits between $5,000 and $25,000. That translates into earnings of $39.84 on a $5,000 deposit. If you deposit less than $5,000, you can still earn a decent APY of 1.50%. If you deposit $25,000 or more, you’ll earn a 1.75% APY. Compare that to the average of all regular 6 month CDs, at 0.46%.
1-Year IRA CD Rates – First Internet Bank, 12 Month IRA (Traditional, Roth)
Regular one-year CDs earn an average interest rate of 0.73% APY. First Internet Bank, however, is offering a one-year IRA CD at 2.07% APY. You’ll need a $1,000 minimum deposit to earn $20.20 in interest once the CD matures.
18-Month IRA CD Rates – Capitol Federal Savings Bank, 18 Month Variable IRA (Traditional, Roth, CESA)
18-month regular CDs earn an average interest rate of 0.89% APY. Capitol Federal Savings Bank on the other hand, is currently offering 2.27% APY on an 18-month IRA CD. This would translate into earnings of $17.12 with a minimum $500 deposit.
2-Year IRA CD Rates – U.S. Postal Service Federal Credit Union, 24 Month IRA (Traditional, Roth, CESA)
Two-year regular CDs earn an average interest rate of 1.00% APY. U.S. Postal Service Federal Credit Union, on the other hand, is currently offering 3.00% APY on a 2-year IRA CD. This would translate into earnings of $15.23 with a minimum $250 deposit.
3-Year IRA CD Rates – EverBank, 3-Year Yield Pledge IRA (Traditional, Roth)
Three-year regular CDs are earning an average interest rate of 1.21% APY currently. EverBank is nearly doubling that, with an interest rate of 2.40% APY with their 3-Year Yield Pledge IRA CD. With those interest rates and a $5,000 minimum deposit, you would earn $357 when the certificate matures.
4-Year IRA CD Rates – EverBank, 4 Year Yield Pledge IRA (Traditional, Roth)
Four-year regular CDs are currently earning an average interest rate of 1.39% APY. EverBank again claims the top interest rate for these IRA CDs, with an interest rate of 2.50% APY. You would earn $519.06 on this CD with a $5,000 minimum deposit.
5-Year IRA CD Rates – Connexus Credit Union – 60 Month IRA (Traditional, Roth)
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 1.66% APY, however Connexus Credit Union outperforms the average with a 3.00% APY on its 5-year IRA CD for members. The minimum deposit is $5,000 to earn this APY.
6+ Year IRA CD Rates – Michigan State University Federal Credit Union, 7 Year IRA (Traditional, Roth, CESA)
Interestingly, these very-long-term IRA CDs don’t offer higher interest rates than the shorter-term five-year IRA CDs. Michigan State University Federal Credit Union offers the highest term for their seven-year IRA CD, at 2.75% APY. That’s still a lot less than Connexus Credit Union which offers a 3.00% APY for a five-year IRA CD. Still, with Michigan State University Federal Credit Union’s seven-year IRA CD, you would earn $522.82 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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