Where to Open an IRA CD — Top 10 Providers Ranked for 2026
The top 10 IRA CD providers ranked
| Rank | Provider | 12mo APY | 5yr APY | Min | Why this rank |
|---|---|---|---|---|---|
| 1 | Bethpage Federal Credit Union | ~4.95% | ~4.10% | $50 | Class-leading 12mo, lowest minimum, easy open membership |
| 2 | Navy Federal Credit Union | ~4.85% | ~4.30% | $1,000 | Top-tier 12mo + 5yr if you qualify for membership (military/family) |
| 3 | Synchrony Bank | ~4.75% | ~4.30% | $0 | Leading bank-side 12mo, broad term ladder, no minimum |
| 4 | Marcus by Goldman Sachs | ~4.65% | ~4.10% | $0 | Clean platform, $0 min, strong brand, competitive rates |
| 5 | PenFed (Pentagon FCU) | ~4.60% | ~4.20% | $1,000 | Open membership, 7-year term unusual in credit union market |
| 6 | Alliant Credit Union | ~4.70% | ~4.25% | $1,000 | Strong 12mo rate, easy $5-donation membership path |
| 7 | Capital One 360 | ~4.50% | ~4.05% | $0 | Digital + branch access in select markets, no minimum |
| 8 | Ally Bank | ~4.55% | ~4.05% | $0 | Shortest EWP in market, No-Penalty CD option, $0 min |
| 9 | Discover Bank | ~4.65% | ~4.00% | $2,500 | 10-year term available, broad term ladder, $2,500 min |
| 10 | Fidelity / Schwab (brokered) | ~5.10% top issuer | ~4.60% top issuer | $1,000 | Stackable FDIC, secondary market, brokerage IRA convenience |
How to pick the right provider for your situation
If you want the highest 12-month rate:
- Fidelity or Schwab brokered CD (~5.10% from top issuer)
- Bethpage Federal Credit Union (~4.95%)
- Navy Federal Credit Union (~4.85% if you qualify)
If you want the highest 5-year rate:
- Fidelity or Schwab brokered CD (~4.60% from top issuer)
- Synchrony Bank (~4.30%)
- Navy Federal Credit Union (~4.30% if you qualify)
But seriously consider the A-rated IRA MYGA option at ~5.60% before locking 5-year at any bank rate.
If you want the lowest minimum:
- Marcus, Synchrony, Ally, Capital One ($0 min)
- Bethpage Federal CU ($50 min — useful for small ladders or Roth IRAs for kids)
If you want branch access:
- Capital One 360 (NY/NJ, DC/MD/VA, TX, LA markets)
- Navy Federal Credit Union (broad national branch network)
- PenFed (limited branches, primarily in DC/VA/CA/HI)
If you want the most flexible early withdrawal:
- Ally No-Penalty IRA CD (11-month, no penalty after day 6)
- Brokered CDs at Fidelity/Schwab (secondary-market sale, mark-to-market)
- Ally Standard IRA CD (60-150 days EWP — shortest in market)
If you want the longest term:
- Discover (10-year direct-issued IRA CD — rare in market)
- Fidelity / Schwab brokered (CDs available out to 10+ years)
- PenFed (7-year direct-issued IRA share certificate)
The decision tree for choosing an IRA CD provider
- Does your IRA already live somewhere? If yes, check whether that institution offers competitive IRA CD rates. Internal consolidation usually beats marginal rate hunting for balances under $50K.
- What is your target term? 12-month: pick from the top of the 12mo ranking. 5-year: also compare against IRA MYGAs at ~5.60% before committing.
- How much are you depositing? Under $25K: stick with $0-minimum direct-issued IRA CDs (Marcus, Ally, Synchrony, Capital One). Over $250K: split across institutions for FDIC stacking, or use brokered CDs for one-account FDIC stacking via Fidelity/Schwab.
- Do you qualify for credit-union membership? If yes (especially Navy Federal or via the $5 donation path at Alliant or Bethpage), the credit unions often have the top 12-month rates.
- Are you under 59½? Strongly reconsider IRA CDs — IRS 10% penalty on early withdrawal stacks on the bank EWP. Use a Roth IRA CD (contributions are early-access-friendly) or a taxable HYSA/CD for funds you might need before 59½.
How IRA CD taxation actually works
This is the single most misunderstood point. An IRA CD is taxed like any other IRA asset, not like a taxable bank CD.
- Inside a Traditional IRA: Interest credited each year is not reported on your 1040. You do not get a 1099-INT for IRA CD interest. The CD compounds tax-deferred. You only owe tax when you withdraw — and withdrawals are taxed as ordinary income.
- Inside a Roth IRA: Interest is never taxed, provided your withdrawal is qualified (you are age 59½ or older and the Roth has been open at least 5 years).
- What you owe each year: Nothing. Zero. The annual 1099-INT that taxable CD holders receive does not apply to IRA CDs.
- What triggers tax: The withdrawal (Traditional) or a non-qualified Roth distribution. The CD's interest crediting cycle is irrelevant for tax purposes.
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.
When a MYGA beats an IRA CD
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) | ~4.30% | ~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 — $250,000 for 5 years:
- IRA CD at 4.30%: $308,576 at maturity
- IRA MYGA at 5.60%: $328,291 at maturity
- MYGA advantage: ~$19,716 over the 5-year period on the same starting balance
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.
What happens at age 73 with RMDs?
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:
- Ladder. Hold multiple smaller CDs maturing in different years; pull RMD from the maturing rung. See IRA CD ladder strategy.
- RMD-friendly product. Most IRA MYGAs allow penalty-free withdrawal of the RMD amount each year — ask the carrier in writing before signing.
The IRA MYGA option — structurally superior for 3-10 year IRA money
None of the top 10 IRA CD providers in this ranking can match a 5-year A-rated IRA MYGA at ~5.60% APY. The rate gap (~130 bps) is structural — it reflects the difference between bank short-duration funding and insurance carrier long-duration corporate bond portfolios. Inside the same tax wrapper, the MYGA produces materially more after-tax retirement income. On a $250K Traditional IRA over 5 years, the difference is roughly $14K of additional after-tax money in a 29% combined bracket; on a $250K Roth IRA the difference is roughly $20K tax-free.
The IRA MYGA option is not better in every case — you give up the FDIC-vs-state-guaranty-fund swap, you give up sub-1-year terms, and you accept a $10K-$25K minimum — but for the central case of 3-10 year IRA money at $25K+ balances, the math heavily favors the MYGA. Drop your details in the form below if you want Hans to provide a written side-by-side IRA CD vs IRA MYGA comparison for your specific situation.
Related guides
- IRA CD vs MYGA — which is better for retirement
- IRA CD ladder strategy
- How to rollover a 401(k) into an IRA CD
- Using IRA CDs to cover RMDs
- Inherited IRA CD rules (SECURE Act 10-year)
- Best MYGA rates — 2026
Second opinion before you commit IRA money
Independent licensed producer. Hans Goldstein.
IRA money is retirement money — one bad rollover or product pick costs you years. Before you lock a 5-year IRA CD or sign a MYGA application, get a written side-by-side comparison from a licensed independent producer who is not paid by the bank or the carrier you are considering.
Drop your info — within 24 hours you'll get a written rate comparison (IRA CDs vs IRA MYGAs at your term), the IRS rollover rules that apply to your situation, and a no-pressure 15-minute call if you want one.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This review reflects publicly available product materials and approximate rates as of the date stated 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.