Best IRA CD rates for January 2025

Written by

Matthew Goldberg

Edited by

Marc Wojno

Reviewed by

Greg McBride, CFA

Rates updated Dec. 17, 2024 | Content updated Jan. 14

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An individual retirement account certificate of deposit (IRA CD) is a savings option for those looking for a guaranteed return on retirement funds. Thanks to their guaranteed yield, IRA CDs may make sense for those planning for retirement. The highest IRA CD rates are generally available at online-only banks and credit unions.

Bankrate’s picks for best IRA CD rates

America First Credit Union: 4.10%-4.65% APY (3 months-5 years); $500 minimum deposit
Suncoast Credit Union: 3.75%-4.75% APY (6 months-5 years); $500 minimum deposit
Delta Community Credit Union: 3.30%-4.35% APY (1-5 years); $1,000 minimum deposit
Navy Federal Credit Union: 2.15%-4.10% APY (3 months-7 years); $1,000 minimum deposit
Synchrony Bank: 0.25%-4.00% APY (3 months-5 years); $0 minimum deposit
Randolph-Brooks Federal Credit Union: 3.31%-4.15% APY (6 months-7 years); $1,000 minimum deposit
Discover Bank: 2.00%-4.10% APY (3 months-10 years); $0 minimum deposit
Citibank: 0.05%-4.60% APY (3 months-5 years); $250 minimum deposit
Ally Bank: 2.90%-4.10% APY (3 months-5 years); $0 minimum deposit

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Bankrate’s picks for the top IRA CD rates

Note: Annual percentage yields (APYs) shown are as of Dec. 17. Banks are listed in order of top APYs for one-year IRA CDs with a $25,000 balance. Some APYs may require higher balances than the minimum deposit. Bankrate's editorial team validates this information regularly. APYs may have changed since they were last updated and may vary by region for some products.

Bankrate includes in its lists only banks that are members of the Federal Deposit Insurance Corp. (FDIC) or credit unions insured by the National Credit Union Administration (NCUA). Advertiser offers and other non-editorial listings on the page may be for additional types of deposit products.

America First Credit Union: 4.10%-4.65% APY (3 months-5 years), $500 minimum deposit

America First Credit Union was founded in 1939. It has more than 1.3 million members.

In addition to IRA CDs, America First has checking accounts, savings accounts and different types of CDs.

Suncoast Credit Union: 3.75%-4.75% APY (6 months-5 years), $500 minimum deposit

Suncoast Credit Union offers both regular IRA CDs with a $500 minimum balance and jumbo IRA CDs that require at least $100,000. These jumbo IRA CDs may earn a higher yield than the regular IRA CDs at the Florida credit union.

Delta Community Credit Union: 3.30%-4.35% APY (1 year-5 years), $1,000 minimum deposit

Delta Community Credit Union began as the Delta Employees Credit Union in 1940. It was started by eight Delta Air Lines employees. Today, the credit union has more than 500,000 members and 29 branches in metro Atlanta and three branches outside of Georgia.

Anyone living or working in metro Atlanta and employees of more than 150 businesses are welcome at Delta Community Credit Union. Delta Air Lines, Chick-fil-A and UPS are some of the eligible businesses.

Navy Federal Credit Union: 2.15%-4.10% APY (3 months-7 years), $1,000 minimum deposit

Navy Federal Credit Union has 13 million members and is the world’s largest credit union. It has a global network of 355 branches. Navy Federal Credit Union has its main office in Vienna, Virginia.

In addition to CDs, Navy Federal Credit Union also offers checking and savings accounts, loans and credit cards.

Synchrony Bank: 0.25%-4.00% APY (3 months-5 years), $0 minimum deposit

Synchrony Bank, formerly known as GE Capital Bank, is a subsidiary of Synchrony Financial. Synchrony Bank offers Roth IRA CDs and traditional IRA CDs.

Opening an IRA CD with Synchrony Bank can only be done over the phone, as Synchrony has no branches and doesn’t offer an online application. Its corporate headquarters are in Stamford, Connecticut.

Randolph-Brooks Federal Credit Union: 3.31%-4.15% APY (6 months-7 years), $1,000 minimum deposit

Randolph-Brooks Federal Credit Union was established in 1952 and has its main office in Live Oak, Texas. It serves four major markets: Austin, Corpus Christi, Dallas-Fort Worth and San Antonio. The credit union has more than 1 million members.

In addition to its range of IRA certificates with terms from six months to seven years, Randolph-Brooks offers a Really Free Checking account that requires no minimum balance and charges no monthly fee.

Discover Bank: 2.00%-4.10% APY (3 months-10 years), $0 minimum deposit

Discover Bank eliminated fees on its deposit products in June 2019. Interest on Discover Bank CDs is compounded daily and credited monthly. Discover Bank provides a nine-day grace period after a CD matures before the CD automatically renews. Its headquarters are in Riverwoods, Illinois.

Citibank: 0.05%-4.60% APY (3 months-5 years), $250 minimum deposit

Citibank is one of the largest banks in the U.S. It offers IRA CDs with terms ranging from three months to five years. It also has regular CDs, checking accounts and savings accounts. In certain areas, its high-yield savings account offers a competitive APY.

Ally Bank: 2.90%-4.10% APY (3 months-5 years), $0 minimum deposit

Ally Bank is an online-only bank that offers more CD options than most direct banks. Ally gives savers options with a High Yield CD and a Raise Your Rate CD. If you fund your IRA CD within 90 days, you’ll get its best rate for the term and balance on either the day you open or the day you fund the account. Ally Bank IRA CDs are available as a Traditional, Roth and Simplified Employee Pension (SEP) IRA.

What is an IRA CD?

An IRA CD is an individual retirement account where your money is in a certificate of deposit for a set term. CD terms usually range from three months to 10 years.

Typically, your options are a traditional IRA or Roth IRA. The tax advantages for each are different. Bankrate’s IRA calculator can help you compute and compare potential earnings for both types.

You may want to consider getting an IRA CD if you’re looking for a guaranteed return to boost your retirement savings while also enjoying tax advantages. IRAs are subject to contribution limits, and not all contributions are eligible for tax savings. Check with your tax advisor if you have questions.

Of course, CDs aren’t the only investment option for those looking to put their money into an IRA. Stocks, bonds, mutual funds and money market funds are also popular options.

Pros and cons of investing in an IRA CD

Before opening an IRA CD, weigh the pros and cons to see if it’s the right product for you.

Pros

A guaranteed return on your investment (as long as you don’t withdraw from your CD before it matures).
Your money is insured up to $250,000 as long as it is held at an FDIC-insured bank or an NCUA credit union.
You won’t have to worry about fees unless you’re penalized for tapping into your account before it matures.

Cons

If you have more time before you are planning on retiring, you may want to invest in something with the potential for a higher return.
The rate you earn might not keep up with inflation.

IRA CD FAQs

IRA CDs are worth considering if you’re looking to diversify your portfolio. You may have other retirement accounts with funds invested in areas where a loss of principal is possible, such as the stock market or exchange-traded funds.

That is also why IRA CDs are a good option for someone with a low risk tolerance. If you don’t like surprises and want to know exactly how much interest the investment will make, a fixed-rate IRA CD provides that certainty. As long as you hold the IRA CD to its maturity, you will earn the expected interest on the IRA CD. It’s also worth considering adding to your portfolio if you’re nearing retirement.

At a bank, the Federal Deposit Insurance Corp. (FDIC) covers up to $250,000 for the combined balance of all self-directed retirement accounts owned by the same person in the same insured bank.

At a National Credit Union Administration (NCUA) credit union, the National Credit Union Share Insurance Fund (NCUSIF) covers up to $250,000. The coverage is separate from insurance coverage on your other credit union accounts.
IRA CDs vs. traditional CDs

Just like when you open a regular CD, your time horizon is very important when choosing an IRA CD. With a regular CD, withdrawing your money too early may result in an early withdrawal penalty. If the funds are in a traditional IRA CD and you withdraw from the CD both before its term is up and before you turn 59½, you may incur an early withdrawal penalty from your bank and a 10 percent early withdrawal tax.

Unlike a regular CD, contributions to a traditional IRA may be tax-deductible. But you can’t deduct contributions that you make to a Roth IRA CD.

IRA CDs vs. IRA savings accounts

An IRA CD may have a higher APY than an IRA savings account. It also might be a more appropriate option because, for the most part, IRA funds consist of money that you don’t plan on touching.

On the other hand, if you’re over 59½ and plan to make withdrawals out of your traditional IRA, then an IRA savings account might make more sense, rather than paying penalties for withdrawing from the CD early.
Traditional IRA

To contribute, you or your spouse, if filing jointly, need to have earned income, such as from employment. Contributions may be tax-deductible if you qualify, and any taxes are deferred until you begin making withdrawals in retirement.

Roth IRA

Just as with a traditional IRA, to contribute, you (or your spouse, if filing jointly) need to have earned income, such as from employment. There is no tax-deductibility on contributions, and there are income limits on being able to contribute directly to a Roth IRA. Your contributions can be withdrawn tax-free and penalty-free at any time, and any investment earnings withdrawn in retirement may be subject to taxes and penalties.
For 2025, the annual contribution limits on IRAs remain $7,000. Those aged 50 and older can contribute an additional $1,000 as a catch-up contribution.

Just like with any IRA, the IRS limits how much you can contribute to an IRA CD per year.
Yes, you can. A trustee-to-trustee transfer is one way to move your IRA CD from one bank to another. Here, you won’t touch the money: Your bank with the maturing CD will send money to your new bank provider. Before moving your money, make sure that your CD has matured in order to avoid potential early withdrawal penalties.

If you are nearing retirement and want your money to be more liquid, consider transferring the IRA CD to an IRA savings account or to an IRA money market account instead of another IRA CD. Check with your bank to make sure the funds don’t have to be in this IRA savings account or IRA money market account for a certain period.
Your IRA CD total balances could be at risk if they exceed $250,000 at an FDIC-insured bank or NCUA-insured credit union, should the financial institution fail. Federally-insured banks and credit unions can only insure up to $250,000 of your money – that’s per depositor, per insured financial institution, per ownership category.

You might also lose money if you have to take an early withdrawal from the IRA CD. And withdrawals before age 59 ½ could result in a penalty from the IRS. But there are some exceptions. For instance, first-time homebuyers under age 59 ½ can withdraw up to $10,000 without paying an IRS penalty and up to $5,000 used for a qualified birth or adoption from an IRA won’t receive a 10 percent penalty.

But you also have to remember that you might incur early withdrawal penalties with your IRA CD from your financial institution. So factor this into your decision whether to get an IRA CD or an IRA savings account.

Research methodology

At Bankrate, we strive to help you make smarter financial decisions. We follow strict guidelines to ensure that our editorial content is unbiased and not influenced by advertisers. Our editorial team receives no direct compensation from advertisers and our content is thoroughly fact-checked to ensure accuracy.

Bankrate regularly surveys over 100 widely available financial institutions, made up of the biggest banks and credit unions, as well as a number of popular online banks.

To find the best CDs, our editorial team analyzes various factors, such as: APY, the minimum deposit needed to earn that APY (or to open the CD) and whether it is broadly available. All of the accounts on this page are insured by the FDIC or the National Credit Union Administration (NCUA).

When selecting the best CD for you, consider the purpose of the money and when you’ll need access to these funds to help you avoid early withdrawal penalties.

Alliant Credit Union, Ally Bank, Amerant Bank, America First Credit Union, American Express National Bank, Axos Bank, Bank of America, Bank5 Connect, Barclays Bank, Bask Bank, Bethpage Federal Credit Union, BMO Alto, BMO Bank, Bread Savings, BrioDirect, Capital One, CFG Community Bank, Charles Schwab Bank, Chase Bank, CIBC Bank USA, CIT Bank, Citibank, Citizens Access, Comerica Bank, Connexus Credit Union, Credit One Bank, Customers Bank, Delta Community Credit Union, Discover Bank, EverBank, Fifth Third Bank, First Citizens Bank, First Internet Bank of Indiana, First National Bank of America, FNBO Direct, Forbright Bank, Golden 1 Credit Union, Heritage Bank, Huntington National Bank, iGOBanking.com, Jenius Bank, KeyBank, LendingClub Bank, Limelight Bank, Live Oak Bank, M&T Bank, Marcus by Goldman Sachs, Morgan Stanley Private Bank, MySavingsDirect, Navy Federal Credit Union, NBKC Bank, Openbank, Pentagon Federal Credit Union, PNC Bank, Popular Direct, Quontic Bank, Randolph-Brooks Federal Credit Union, Regions Bank, Rising Bank, Salem Five Direct, Sallie Mae Bank, Santander Bank, SchoolsFirst Federal Credit Union, Security Service Federal Credit Union, SoFi, State Employees' Credit Union, Suncoast Credit Union, Synchrony Bank, TAB Bank, UFB Direct, US Bank, USAA Bank, Varo Bank, Vio Bank, VyStar Credit Union, Wells Fargo, Zions Bank

Best IRA CD rates for January 2025

Bankrate’s picks for the top IRA CD rates

America First Credit Union: 4.10%-4.65% APY (3 months-5 years), $500 minimum deposit

Suncoast Credit Union: 3.75%-4.75% APY (6 months-5 years), $500 minimum deposit

Delta Community Credit Union: 3.30%-4.35% APY (1 year-5 years), $1,000 minimum deposit

Navy Federal Credit Union: 2.15%-4.10% APY (3 months-7 years), $1,000 minimum deposit

Synchrony Bank: 0.25%-4.00% APY (3 months-5 years), $0 minimum deposit

Randolph-Brooks Federal Credit Union: 3.31%-4.15% APY (6 months-7 years), $1,000 minimum deposit

Discover Bank: 2.00%-4.10% APY (3 months-10 years), $0 minimum deposit

Citibank: 0.05%-4.60% APY (3 months-5 years), $250 minimum deposit

Ally Bank: 2.90%-4.10% APY (3 months-5 years), $0 minimum deposit

What is an IRA CD?

Pros and cons of investing in an IRA CD

Pros

Cons

IRA CD FAQs

Who are IRA CDs best for?

How do IRA CDs compare with other popular accounts?

IRA CDs vs. traditional CDs

IRA CDs vs. IRA savings accounts

What types of IRAs are eligible for a CD?

Traditional IRA

Roth IRA

What are the contribution limits for an IRA?

Can I transfer an IRA CD to another bank?

What are the risks associated with IRA CDs?

Research methodology

Banks we monitor