Updated on Saturday, January 1, 2022

You can get an individual retirement account (IRA) certificate of deposit (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.

Every month, we choose the best IRA CD rates using data from DepositAccounts.com, a database of offerings at thousands of banks and credit unions. We sorted the products by annual percentage yield (APY). We then eliminated products that are not available nationwide. From there, we chose the IRA CD with the highest APY among products with a minimum deposit no greater than $5,000. Here are the best options.

The best IRA CD rates in December 2021

Best 3-month IRA CD — Service Credit Union (Traditional, Roth)

3 Month IRA Certificate from Service Credit Union Service Credit Union offers an array of IRA CDs, including a 3-month CD with a competitive APY of 0.40%. This CD requires a $500 minimum deposit, and dividends are compounded and credited monthly.

Membership to Service Credit Union is open to anyone tied to the military, Department of Defense, select employer groups or members of American Consumer Council, which you can join free of charge using the promo code “service.” The financial institution is headquartered in Portsmouth, N.H. Branch locations are in New Hampshire, Massachusetts and Germany, but account holders can also use Service Credit Union’s CO-OP and Allpoint nationwide network as well as its online banking services.

Best 6-month, 1-year, 2-year and 4-year IRA CDs — EFCU Financial Credit Union (Traditional, Roth)

6 Month IRA from EFCU Financial If it’s IRA CDs you’re after, a membership to EFCU Financial Credit Union may be worth your while. EFCU Financial Credit Union is offering the highest APY on the following IRA CD for deposits of at least $500:

  • 6-month: 0.85% APY
  • 1-year: 0.90% APY
  • 2-year: 0.90% APY
  • 4-year: 1.20% APY


This credit union has other IRA CD products, too, with term lengths going as far as 60 months.

There are a number of ways to become a member of EFCU Financial, including living or working in one of nine Louisiana Parishes or getting a volunteer membership through the EFCU Financial Foundation or the Louisiana Wildlife Foundation.

Best 19-month IRA CD — Western Vista Credit Union (Traditional, Roth)

19 Month IRA CD Special from Western Vista Federal Credit Union Western Vista Credit Union is offering the highest rate on a 19-month IRA CD at 0.55% APY for deposits of at least $500. It also offers other IRA CDs ranging from six months to 60 months and APYs from 0.10% to 0.55%.

You can become a member of Western Vista CU by completing a membership application at your nearest location. Although there are only Western Vista CU locations in Cheyenne and Casper, Wyo., it is a part of the Co-op Shared Branching which includes more than 5,000 shared branches. You’ll also need to make a deposit of $25 in a savings account, which is representative of your purchase of a share.

Best 3-year IRA CD — Hughes Federal Credit Union (Traditional, Roth)

36 Month IRA from Hughes Federal Credit Union Hughes Federal Credit Union offers a standout rate on its 3-year IRA certificates. The certificate requires a minimum deposit of $1,000 to open the account and to earn an APY of 1.21%.

Membership extends to individuals who live or work in Tucson, Ariz.; are employed by one of their select employer groups; make a small donation to select community interest groups like Tucson Audubon Society or Friends of the Green Valley Public Library; and immediate family members of a current Hughes Federal member.

Best 59-month IRA CD — Abound Credit Union (Traditional, Roth)

59 Month Rate Riser IRA from Abound Credit Union Abound Credit Union currently offers its 59-month Rate Riser IRA CD with an APY of 1.25% and a $500 minimum deposit. Abound CU offers several other CDs starting at three months and 0.25% APY.

You can become a member of Abound CU if you are military personnel, active or retired military and civil service employees or if you live in select areas of Kentucky or are employed by select local employers. If you don’t meet these requirements for membership, you can still become a member by selecting Other from the dropdown box on the application page.

Best 6-year IRA CD — Evansville Teachers Federal Credit Union (Traditional, Roth, CESSA)

6 Year IRA from Evansville Teachers Federal Credit Union To join this credit union, you may make a $5 donation to the Mater Dei Friends & Alumni Association. You may want to strongly consider doing so, as the 6-year IRA CD rates offered by Evansville Teachers FCU are currently the best on the market, with a 1.20% APY. Plus, opening an IRA CD through Evansville Teachers FCU only requires a minimum balance of $1,000.

3 questions to consider before opening 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: $6,000 per year ($7,000 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.

Unless you’ve invested in a bump-up IRA CD, you won’t be able to take advantage of a higher rate until your CD matures. Withdrawing funds from an IRA CD before they mature will result in a stiff penalty. Bump-up IRA CDs give you a chance to increase your interest rate to a higher level if it’s available, but you’re generally only allowed to do this once or twice during the life of the CD.

You can either use the direct-transfer method or the indirect-transfer method. The direct transfer method requires setting up your new IRA account by filling out a form authorizing the bank or credit union to transfer money from the old account into the new account. The indirect transfer method involves you asking for a check from your old IRA account. You have up to 60 days to deposit that check into your IRA CD to avoid incurring a penalty.

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