Discover Bank IRA CD Rates

A great retirement investing alternative that not many people have heard about is the IRA CD. That would be a CD inside of a Roth or Traditional IRA. With this approach, you get the security of a CD with the tax advantages of an IRA.

As a reminder, an IRA is a tax-advantaged retirement account that you use to hold investments, like a stock, bond, or in this case, a CD. A CD is a certificate of deposit, a deposit product with a fixed term and rate. They are also FDIC insured.

Discover Bank was one of the first banks I knew to offer an IRA CD. Their IRA CDs range anywhere from 3 months to 10 years. The minimum deposit is $2,500.

  • Discover Bank 12-month IRA CD
  • All Discover Bank IRA CDs

So, who should consider an IRA CD? Ultimately, it would be best if you made your investment decisions. There is no one-size fits all investment plan. But generally speaking, here’s who should consider an IRA CD:

  • CD investors that want to pay less in taxes.
  • Retirement investors who want an alternative to their money market fund to meet their cash asset-class requirements.
  • Beginning investors who want to start an IRA but don’t know about other investment asset classes.

I have faith in the American business for the long term. For this reason, and being the young guy that I am, 🙂 I stay with domestic stocks for a large percentage of my portfolio.

But with the economy still on shaky ground and some discussing another possible market crash, some investors may be looking for a safe, secure place to continue investing for retirement.

This approach makes sense for a lot of people. If you’re looking to preserve capital (i.e., keep your retirement money safe), the typical places to turn include a money market fund within your retirement account or a simple CD or savings account.

Money Market Funds don’t have FDIC Insurance or much of a return on your money; CDs outside of an IRA cannot achieve extra tax savings. The IRA CD brings them both together. Learn more about IRA CDs.

Avatar About Philip Taylor, CPA

Philip Taylor is a CPA, writer, entrepreneur, and founder of FinCon. Philip has been quoted and featured in multiple media outlets including The New York Times, The Washington Post, Forbes, Fox Business, and more. Connect with him on Twitter or LinkedIn.