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Save More For Retirement in an IRA CD

Higher guaranteed rate of return, maximum security, and tax advantages are three reasons to open an IRA CD when saving for retirement.  When you open6 one with SCCU, you also are taking advantage of our competitive rates and flexible terms.
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Product Features

Terms & Fees
Minimum opening deposit $500
Minimum yearly deposit None
Transaction limit CDs must be fully funded at the time of opening; direct deposit is not available
Earns interest Yes
Monthly service fee None

IRA CD Interest Rates

Effective Date: June 01, 2023
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Term Interest Rate APY^ Min. Average Daily Balance to Earn APY^

3 Months (NEW!)

3.00% 3.03% $500
6 Months 3.05% 3.07% $500

9 Months (NEW!)

3.10% 3.14% $500
12 Months 3.25% 3.29% $500

13 Months (NEW!)

3.75% 3.80% $500
18 Months 3.85% 3.91% $500

23 Months (NEW!)

4.25% 4.32% $500
24 Months 3.75% 3.80% $500
30 Months 3.65% 3.70% $500
36 Months 3.50% 3.55% $500
42 Months 3.50% 3.55% $500
48 Months 3.50% 3.55% $500
54 Months 3.50% 3.55% $500
60 Months 3.50% 3.55% $500
CD Account rates are accurate as of the date indicated and are subject to change at any time. The minimum deposit required is $500 for all terms. CD must be fully funded at time of opening. The minimum average daily balance to earn APY (Annual Percentage Yield) is $500. The APY is based on the assumption that interest will remain in the CD Account until maturity. A penalty may be assessed for early withdrawal. Fees may reduce the earnings on the CD/IRA CD Account. 

Frequently Asked Questions

IRA CD interest rates at credit unions are some of the best IRA CD rates available. Because credit unions such as SCCU focus on helping members maximize their savings with features such as lower fees on services and better rates on investments as well as loans. We invite you to learn more by contacting us for today's rates or visiting the SCCU branch location that's most convenient for you.

An associate at one of our convenient branch locations will be glad to assist you in opening your IRA CD. Your IRA CD can be opened with an initial $500 deposit1 and three- to 60-month terms are available.

Regardless of whether you start with a Traditional IRA or a Roth IRA to fund your IRA CD, it works the same. You use the money in your IRA to purchase the CD of your choice (three- to 60-month terms are available here at Space Coast Credit Union) and begin enjoying maximum security and a rate of return that's guaranteed.

The determination of whether your Traditional IRA contributions are tax deductible depends upon several factors, including your tax-filing status, so it's important to consult your financial advisor or tax advisor for guidance. In general, however, since an IRA CD is funded by an IRA, it offers the same tax advantages as IRAs. With a Traditional IRA (or an IRA CD funded by a Traditional IRA), your contributions are tax deductible and your withdrawals are subject to taxes. With a Roth IRA CD, your withdrawals are tax free and your contributions are made with post-tax money, but your contributions to a Roth IRA are not tax deductible.

The advantages of an IRA CD combine the benefits of both an IRA and a CD. Whether you have a Roth IRA CD or a CD funded by a Traditional IRA, both types of IRAs provide tax-free growth, and the capital gains or dividends the IRAs earn are not taxed. Among the benefits of CDs are their interest rates, which are higher than those of regular interest-bearing checking and traditional savings accounts, and higher than money market accounts. So, with an IRA CD, you'll enjoy great IRA CD interest rates and, with the fixed terms and fixed interest rates that come with CDs, you'll also know just how much your money will earn. For that reason, CDs are considered some of the safest investments.

There are some features that may be seen as disadvantages compared to other types of investments, however. Higher-risk investments such as stocks and bonds may yield higher returns—because CDs are lower-risk investments, they typically have lower yields and slower growth. CDs also have early withdrawal penalties if you take any money out before the IRA CD's maturity date. On the IRA side, there are limits to the maximum amount you can contribute each year.

When the fixed term of your IRA CD expires and your IRA CD matures, you have several options. You may let it renew (or roll over), which means your funds will go into a new IRA CD with the same term length as your original one. You may also put your money into a new CD with new terms, or you may put your money into one of your other accounts, such as a Traditional IRA, Roth IRA, money market account or savings account.

To understand an IRA CD and how it works, it helps to clearly define both and IRA (individual retirement account) and a CD (certificate of deposit).

IRAs are retirement accounts that offer tax advantages and are relatively simple ways to save for your retirement. IRAs can be used to buy investments such as stocks, bonds and mutual funds. The two main types of IRAs are Traditional and Roth, each of which has its own tax breaks.

CDs are savings accounts that have a fixed maturity date, or date you can withdraw the funds in it without penalties, as well as a fixed interest rate. CDs are offered with specific term lengths—or set periods of time—that may be a few months or several years.

An IRA CD allows you to use some of the money you have in your IRA as an investment in a CD. So, in addition to stocks, bonds and mutual funds, a CD is simply another place in which to invest your IRA funds, but it's one with an interest rate that won't fluctuate with the market.

The most important difference between a traditional CD and an IRA CD is that the money used to fund your IRA CD comes from an IRA. Either investment provides all of the benefits of CDs, including a guaranteed rate of return and excellent security.

The answer depends on your personal investment goals, but each can be an excellent way to save for your retirement. You may want to consult your tax or financial advisor to ensure you are making the choice that's right for you—and to learn more about your individual tax status related to these investments—but here are some features of each for comparison:

Roth IRAs: You won't pay taxes on the amount of money you withdraw from a Roth IRA in retirement. These investment accounts are often ideal for people who are in higher tax brackets after they retire.

Traditional IRAs: Pre-tax contributions are the hallmark of Traditional IRAs—taxes will be paid on any withdrawals you make during your retirement. Traditional IRAs are popular with investors who expect to be in lower income tax brackets after retirement.

IRA CDs: You simply use the money from a Roth IRA or a Traditional IRA to fund your IRA CD.