IRA Certificate of Deposit
A CD held within a traditional or Roth IRA wrapper. Combines the federal insurance of a bank deposit with the tax-advantaged shell of a retirement account.
Rate Summary — as of
Typical APY range
4.50–5.20%
Typical minimum balance
$500
What Is a IRA Certificate of Deposit?
A CD held within a traditional or Roth IRA wrapper. Combines the federal insurance of a bank deposit with the tax-advantaged shell of a retirement account.
Key Features
- Tax-deferred or tax-free growth (traditional vs Roth)
- FDIC/NCUA insured up to $250,000 per IRA ownership category
- Fixed rate
- Required minimum distributions apply to traditional IRA CDs
What to Watch Out For
- Contribution limits ($7,000 in 2026; $8,000 if 50+)
- Early distribution penalty (10% under 59½ plus income tax)
- IRA custodian fees may offset rate advantage
Who This Product Fits
Retiree on Fixed Income
Drawing income from deposits. Prioritises rate predictability, CD ladders, and FDIC/NCUA coverage across multiple institutions.
High-Net-Worth Depositor
Managing cash positions exceeding $250,000. Requires strategies for FDIC coverage beyond the single-institution limit: CD ladders across banks, CDARS networks, and brokered CDs.
Compare by Bank Type
The same IRA CD product type varies significantly by institution. Select a bank category to see how rates, fees, and features differ:
Big-Four Banks
Chase, Bank of America, Wells Fargo, and Citibank. Unmatched branch network; rates typically 0.01–1.…
Regional Banks
Mid-size institutions (Regions, Huntington, Fifth Third, KeyBank). Often competitive CDs; savings ra…
Online-Only Banks
Ally, Marcus, Discover Bank, American Express Bank. Consistently lead rate tables by 1–3 percentage …
Credit Unions
Member-owned cooperatives insured by NCUA. Share rates often match or beat online banks; membership …
Fintech Neobanks
SoFi, Wealthfront Cash, Betterment Cash Reserve. Pass-through deposit models; rates competitive but …
Brokerage Banks
Fidelity, Charles Schwab, Vanguard banking arms. Sweep rates are often low on default; money market …
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