Best IRA CD Rates for December 2025
Written by
Sarah Sharkey
Edited by
Nupur Gambhir
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
If you’re looking for a safe, fixed-return option to grow your retirement savings, an IRA certificate of deposit (CD) can be a reliable choice. With an IRA CD, your money is placed in a federally insured account at a bank or credit union and earns a guaranteed interest rate for a set period of time. Because the rate is fixed, you’ll know exactly how much your money will grow, making IRA CDs a steady, low-risk way to build long-term financial security.
Below, you’ll find today’s best IRA CD rates, plus a simple breakdown of how IRA CDs work and what to consider when choosing the right one for your retirement plan.
Today’s Top IRA CD Rates
| Institution | Insured By | Term | APY | Minimum Deposit |
|---|---|---|---|---|
| Puget Sound Cooperative Credit Union | NCUA | 48-month IRA Wave Club certificate | 4.23% | $500 |
| USALLIANCE Financial | NCUA | 12-month IRA certificate special | 4.18% | $500 |
| Service Credit Union | NCUA | 7-month IRA certificate | 4.15% | $500 |
| Puget Sound Cooperative Credit Union | NCUA | 12-month IRA certificate | 4.15% | $500 |
| First Flight Federal Credit Union | NCUA | 12-month IRA certificate | 4.07% | $10,000 |
Why Consider an IRA CD?
- Guaranteed return. You lock in your APY for the entire term, no surprises.
- Federal insurance protection. Bank IRA CDs are FDIC-insured and credit union IRA CDs are NCUA-insured, up to applicable limits.
- Low-risk retirement growth. Ideal for savers who want predictable earnings from funds they don’t plan to touch soon.
- Simple diversification. IRA CDs can balance out higher-risk investments in your retirement portfolio.
Where To Get The Best IRA CD Rate
Right now, Puget Sound Cooperative Credit Union offers the highest IRA CD rate, with a 4.23% APY on a 48-month IRA Wave Club certificate and a $500 minimum deposit. The account is NCUA insured, so your savings are federally protected.
Before you lock in a rate, it’s worth checking a few details. IRA CD rates can change quickly, and some banks offer similar returns with lower minimum deposits, which may be a better fit depending on how much you’re investing.
What Is an IRA CD?
An IRA CD is simply an individual retirement account that invests all of its funds in certificates of deposit. IRA holders can put some or all of their money in a CD, and some banks have CDs they designate specifically for retirement savings.
How Do IRA CDs Work?
An IRA CD is a type of retirement account that allows you to grow your funds through a certificate of deposit. For retirement savers who want to lock in predictable returns, an IRA CD might be the right fit. Throughout your savings journey, your funds will grow through interest payments. You won’t have to pay income tax on this growth until you withdraw the funds in retirement.
Pros and Cons of IRA CD
Every investment has advantages and disadvantages. Below is a look at the pros and cons.
Pros
- Predictable returns: Like other types of CDs, you can lock in a predetermined interest rate to grow your funds over a set period of time.
- Tax advantages: You can tuck your funds away for tax-deferred growth.
- Limited fees If you don’t withdraw your funds early, you likely won’t face too many fees with an IRA CD.
Cons
- Inflation might outpace returns: The predictable returns might be lower than inflation, which cuts into your spending power.
- Early withdrawal penalties: If you need to withdraw your funds early, expect to forfeit some of your interest earnings.
Things to Consider Before Opening an IRA CD
- Term length: Shorter terms provide more flexibility; longer terms may offer slightly higher rates.
- Minimum deposit: Some institutions allow you to open with $50; others require $1,000 or more.
- Membership requirements: Credit unions may require you to meet eligibility criteria.
- Insurance coverage: Make sure your combined IRA balances stay within FDIC/NCUA limits.
- Your retirement timeline: Make sure the CD term fits your age, tax considerations, and withdrawal needs.
- Reinvestment strategy: Plan ahead — rates may go up or down when your CD matures.
Is an IRA CD a Good Investment?
An IRA CD is a strong option if you want dependable, low-risk growth for part of your retirement savings. It’s particularly helpful for near-retirees or anyone who prefers predictable returns over market volatility. If you may need access to the money earlier, a shorter-term CD or IRA savings account may be a better fit.
Final Take
Today’s IRA CD rates are offering competitive, federally insured returns that can strengthen your long-term retirement plan. Whether you choose a high-yield 12-month IRA CD or a short-term special offer, the key is matching the rate, term and deposit requirement with your financial goals. Lock in a strong rate, let your money grow, and stay focused on your future.
FAQ
If you're considering an IRA CD, it's important to learn how they work. These questions might resolve some of the confusion.- What types of IRAs are eligible for CDs?
- All types of IRAs allow CDs as an investment option.
- Who do IRA CDs best serve?
- IRA CDs for low-risk investors are best suited for those who are near retirement and need to keep their funds safe but also want a higher level of return than a standard savings account.
- What is the difference between a CD and an IRA CD?
- An IRA CD offers a tax-advantaged way to save for retirement. Regular CDs require savers to pay tax on the interest earned in your CD the year you receive it. In contrast, a traditional IRA CD allows you to defer paying taxes on the interest earned.
- Is interest on IRA CDs taxable?
- A traditional IRA CD is a tax-advantaged retirement account. As your CD earns interest, you won't be required to pay taxes on the earnings in a given year. However, you will pay income tax on the interest earnings when you withdraw the funds.
- Are IRA CDs FDIC Insured?
- If you work with an FDIC-insured institution to open your CD, then your funds will be protected for up to $250,000.
- What happens when an IRA CD matures?
- When an IRA CD matures, you have the option to renew your CD term length. With that, your funds will be moved into a new CD to continue earning interest.
Will Healy and Daria Uhlig contributed to the reporting for this article.
Rates are subject to change; unless otherwise noted, rates are updated periodically.
All information about Discover® IRA CDs has been collected independently by GOBankingRates. Discover® IRA CDs are no longer available through GOBankingRates.
Rates may vary by region. To verify rates in your area, check the bank’s website for details.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
GOBankingRates is a personal finance and consumer interest rate website and an online marketing company serving top-tier banks, credit unions and other financial services organizations. Some companies mentioned in this article might be clients of GOBankingRates, which serves more than 100 national, local and online financial institutions. Rankings and roundups are completely objective, and no institution, client or otherwise, paid for inclusion or specific placement. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by the companies included in the article. All fees and rates are subject to change at the issuers’ discretion. Some interest rates might be short-term or promotional offers only, and it is possible additional terms and conditions must be met to obtain the interest rates listed. Rates and availability might vary by region. Verify terms and conditions before opening an account.
GOBankingRates bases its assessment of “best” and “top” products on the above-stated parameters to create a baseline for comparison. This assessment is an approximation of “best” and “top” designed to help consumers find products that might be appropriate for them. There could be other options available as well. Consumers should consider various options appropriate for their circumstances.
