When considering putting money into a 1-Year IRA certificate of deposit (CD), rates are probably the first thing you want to look into. While IRA 12-Month CD rates may vary among financial institutions, there's no denying that collecting any sort of interest on your savings is a good thing. But how do you know when an IRA 12-Month CD is your best option for saving, particularly when it comes to retirement? Is it worth getting a higher rate in exchange for not being able to touch that money for a longer period of time?

It All Depends on Your Goals.

While 1-year IRA CD rates are often lower than the rates attached to longer-term CDs, that doesn't make them a less intelligent savings choice. One of the major benefits of a 12-Month IRA CD is that you only have to wait 12 months to access your funds. Of course, with most IRA CDs you can access your money at just about any time, but doing so before maturity usually leads to significant early withdrawal penalties that eat away at your return and possibly principal. In addition, IRA CDs may have tax consequences if the funds are withdrawn early.

On the other hand, when a 12-Month IRA CD reaches maturity, you have the option of either withdrawing that money or rolling it over into another IRA CD. For some people, this regular access and flexibility is a must-have benefit. Another benefit to an IRA 12-Month CD from an FDIC-member bank such as Ally Bank is that your funds are insured by the FDIC up to the maximum amount allowed by law. When you're talking about retirement savings, peace of mind is a definite plus.

At Ally Bank, you’ll find CD rates that are among the most competitive available in the country. In addition to the High-Yield IRA 12-Month CD, Ally Bank offers a full range of IRA CDs that can be opened with any amount. Take a look at all we have to offer at Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.

View CD Rates