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Our Criteria
When examining banks, Annuity.org’s editorial staff set several criteria that needed to be met for a bank to be considered. Each bank must:
- Be federally insured.
- Offer IRA CDs.
- Rank in the top 30 of chartered commercial banks by consolidated assets.
Our Methodology
Annuity.org employed a strict and research-focused methodology when selecting banks for consideration. In order to be considered, a bank needed to be federally insured, offer IRA CDs and rank in the top 30 banks by consolidated assets.
This helped guarantee that only the strongest and most stable options were considered.
Banks were then compared by their specific IRA CD offerings, the consistency of those offerings, APY and minimum deposit.
It’s important to note that CD rates can vary by location. So, the rates presented for each bank or IRA CD may differ for you depending on what part of the country you live in.
Annuity.org focused on the top 30 banks by consolidated assets in part to ensure that the options considered are widely available to consumers.
Learn more about our broader editorial guidelines.
Our Picks
Editor’s Choice: Best Overall
Bank Details
Originally founded in 1919 as a division of GM, Ally Bank is one of the 25 largest banks in the country with over $186 billion in consolidated assets. Ally Bank is entirely online, meaning that is has no physical branches anywhere in the U.S.
5.00% on 12-Month IRA CD
Pros
- No minimum deposit
- Strong rates across multiple terms
Cons
- No physical locations
Our Take
Ally Bank stands out among the rest when it comes to IRA CD offerings for several key reasons. The first is the simple fact that Ally offers rates on its IRA CDs that are significantly higher than many competitors. APYs exceed 4% on terms that range from nine months to five years. Some competing banks offer just a fraction of that return.
Another key benefit is the lack of a minimum deposit. Most competitors require some sort of minimum to open an IRA CD, and for many competitors, it can be significant. That is not the case with Ally. The bank’s strong rates are even available for smaller CD investments.
One drawback to be aware of is that, while Ally has many great offerings, it does not have any physical branches and operates entirely as an online bank. This can be a leap for those who only have experience with more traditional banks.
Best for Multiple IRA Options
Bank Details
BMO Harris is one of the 15 largest banks in the country, with consolidated assets exceeding $265 billion and over 1,000 domestic branches. It offers a strong variety of IRA CD options.
5.10% APY on a 13-Month IRA CD
Pros
- Strong diversity of IRA CDs
- Solid APYs for smaller balances
Cons
- High minimum deposit
Our Take
It’s no secret that there are multiple types of IRAs that appeal to different personal finance situations. But this isn’t always the case regarding IRA CDs since they are not a particularly mainstream product. It’s not unusual for banks to offer just a few options.
BMO Harris stands out for its diversity. The bank offers regular IRA CDs, ROTH IRA CDs and even SEP IRA CDs. That diversity also carries into terms, with offerings ranging from three months to five years.
The bank generally offers a strong APY on its IRA CDs as well, including for smaller balances. For example, a $1,000, 12-month IRA CD can come with an APY of 5.10%.
While its rates and diversity of offerings are attractive, BMO Harris does require a $1,000 minimum, which can be higher than some competitors.
Best for High Rates Across Many Terms
Bank Details
Discover clocks in as one of the 30 largest banks in the country with $130 billion in consolidated assets. The bank is entirely online with no physical branches but does trace its origins back over a century and is a reliable choice.
5.00% on an 18-Month IRA CD
Pros
- Strong APYs
- Both Roth and traditional options
Cons
- Very high minimum deposit
- No physical branches
Our Take
It’s not unusual for a bank to offer a strong rate on at least a handful of terms. Discover stands out thanks to favorable rates on virtually all its IRA CD terms.
An APY of at least 2% is available on all options, with many choices exceeding 4%. While the bank doesn’t go as far as BMO Harris in diversity, it does offer both traditional and Roth options as well, appealing to a wider range of customers.
The one drawback of the attractive rates is the $2,500 minimum deposit, which is significantly higher than most competitors. Discover also does not have any physical branches.
Best for Smaller Minimums
Bank Details
TD Bank is one of the 10 largest banks in the U.S., eclipsing $400 billion in consolidated assets and with more than 1,100 branches. The bank has strong CD offerings for existing members.
4.00% on a 9-Month IRA CD
Pros
- Minimum balance of just $250
- Strong APYs for existing members
Cons
- Rate bump feature only for members
Our Take
TD Bank offers some of the lowest minimum balances available, requiring just $250 to open an IRA CD while providing traditional and Roth options. On top of the low minimum deposit, generally, high APYs are offered as well.
The drawback is that there is a notable cutoff in value for those who are not already TD Bank members. If you already have a TD Bank checking account when you open your CD, you are eligible for a sizeable rate bump. This makes TD Bank an enticing option, but largely for those who are already affiliated with the bank.
Others We Considered
The following banks were considered but were not selected due to varying reasons. While meeting our criteria, they either did not offer competitive IRA CD rates, have ceased offering them entirely or did not provide readily available information on their rates.
Frequently Asked Questions
An IRA CD is an IRA that is invested entirely in CDs, combining the benefits of both.
An IRA CD can be beneficial by combining the retirement aspects of an IRA with the low-risk components of investing in a CD.
It varies by bank, but IRA CD rates tend to not be all that different from standard CD rates.
The APY offered, the term lengths available and the minimum deposit required are all factors to considered when selecting the right IRA CD.
As with standard CDs, there can be penalties for attempting to withdraw money before the term has ended.
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