APY 12-mo / 60-mo (9/25/2026)
1.25% / 4.15%
Bethpage Federal Credit Union (NCUA charter #5346) is one of the largest credit unions in the Northeast, headquartered on Long Island. Membership is open to anyone in the U.S. via a $5 deposit into a Bethpage savings account, no Long Island residency required, no employer affiliation needed.
Bethpage's IRA certificate is unusual in two ways: the minimum is $50 (one of the lowest in the market, useful for ladder construction or for opening a small Roth IRA for a child), and the 12-month posted rate has consistently been at or near the top of the credit-union market for the past two years.
| Term | APY | EWP |
|---|---|---|
| 3 month | 1.00% | 90 days dividends |
| 6 month | 1.25% | 90 days dividends |
| 12 month | 1.25% | 90 days dividends |
| 13 month (special) | 4.00% | 90 days dividends |
| 18 month | 1.25% | 90 days dividends |
| 2 year | 1.25% | 180 days dividends |
| 3 year | 1.25% | 180 days dividends |
| 4 year | 1.25% | 180 days dividends |
| 5 year | 4.15% | 180 days dividends |
Source: fourleaffcu.com rates page, APY in effect as of 9/25/2026. Penalty terms are from the original review; confirm in FourLeaf's disclosure.
This is the single most misunderstood point. An IRA CD is taxed like any other IRA asset, not like a taxable bank CD.
If you are under age 59½ and withdraw, two penalties can stack: the bank's early withdrawal penalty (typically 90-365 days of interest) and the IRS 10% additional tax on the withdrawn amount. The bank's penalty is enforced by the bank; the IRS penalty is enforced via Form 5329 on your tax return.
Most IRA CDs require $500-$2,500 to open. Bethpage's $50 minimum opens two specific use cases that are otherwise hard to execute:
An IRA MYGA (multi-year guaranteed annuity) is, in plain English, a CD-equivalent issued by an insurance carrier instead of a bank. Inside an IRA wrapper, both are tax-deferred, the tax wrapper is identical. The difference is the rate, the insurance backing, and the surrender mechanics.
| Feature | IRA CD (bank) | IRA MYGA (insurance) |
|---|---|---|
| Typical 5 years rate (mid-2026) | ~4.10% | ~5.60% |
| Tax treatment inside IRA | Deferred | Deferred (identical) |
| Insurance / guaranty | FDIC $250K per depositor per bank | State guaranty fund, typically $250K-$300K per owner per carrier; backed by carrier balance sheet |
| Early access | Pay 90-365 days interest, get principal back | 10% free withdrawal annually most carriers; surrender charge on excess |
| Rate lock-in length | 3 months to 5 years typical | 3 to 10 years; 5-year is most common |
Worked example, $100,000 for 5 years:
The rate gap exists because MYGA carriers hold longer-duration corporate bonds than banks hold; banks fund CDs primarily with short Treasuries. Inside an IRA, where you cannot use the principal for spending anyway until 59½ without penalty, locking up for the full term costs you nothing extra. The MYGA is structurally a better fit for IRA money the same way it is for taxable money, with one added consideration: the tax-deferred wrapper is "redundant" inside an IRA, but that does not make the MYGA worse, it just means you are paying for an insurance product purely on rate, not on tax shelter. And on rate, it usually wins.
See IRA CD vs MYGA decision guide and current best MYGA rates.
Under SECURE Act 2.0, Required Minimum Distributions (RMDs) begin at age 73 for Traditional IRA holders (and SEP/SIMPLE IRA holders). Roth IRAs have no RMD during the original owner's lifetime. For an IRA CD, the practical issue is liquidity: if your full IRA balance is locked in a single 5-year CD, you may need to break the CD to take your RMD. Two solutions:
Bethpage, now FourLeaf Federal Credit Union, is no longer a 12-month standout: its standard 12-month IRA certificate pays 1.25%, and the value is in the 13-month (4.00%) and 60-month (4.15%) specials (APY as of 9/25/2026). The $50 minimum is unusually friendly to small balances. For short IRA cash equivalents, use the 13-month special, not the standard terms. For 5-year buy-and-hold IRA money, an IRA MYGA wins on rate inside the same tax wrapper.
This review is based on the carrier's public product materials and rates as of the date shown above. CD rates, IRA account fees, MYGA crediting rates, and IRS rules cited (RMD age 73 under SECURE 2.0, 10% early withdrawal penalty before 59½, Roth 5-year qualified distribution rule, post-2019 SECURE Act 10-year rule for non-spouse inherited IRA beneficiaries) are current as of the publication date and subject to change. Always confirm current rates with the issuer and current tax law with a CPA before opening, rolling over, or withdrawing from any IRA. This article is general information for educational purposes; it is not a personalized recommendation, tax opinion, legal opinion, or offer of any specific product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated annuity carriers; he does not sell bank CDs and is not affiliated with any bank, credit union, or brokerage discussed in any review on this site. No compensation has been received from any bank, credit union, or brokerage in connection with this review. MYGAs are insurance products with surrender charges; bank CDs are FDIC-insured deposit products; credit union CDs are NCUA-insured share certificates. These are different product categories with different protections and trade-offs.
Hans Goldstein is an Enrolled Agent, admitted to practice before the Internal Revenue Service. Not affiliated with or endorsed by the IRS. General education, not tax or legal advice for your situation.