Many people who have either a traditional IRA or a Roth IRA are looking for other safe ways to grow their retirement assets. One option that you don’t want to overlook is an IRA Certificate of Deposit (IRA CD).
IRA CDs are a viable option for building your savings for retirement. But before you get started, it's important to know the difference between the two types of retirement accounts:
- Traditional IRA—the funds withdrawn are taxed depending on your income.
- Roth IRA—the funds withdrawn usually are tax-free since you use after-tax dollars to open the account.
Both accounts have rules and restrictions you will want to discuss with your tax or retirement professional.
With IRA CDs, you get the "best of both worlds" in a sense: the tax benefits of an IRA and the security of a CD.
Supplement your retirement savings efforts with Ally Bank's IRA CD products, which offer some of the most competitive interest rates around. Learn more by visiting Allybank.com or call live, 24/7 customer care at 877-247-ALLY (2559) today.
Ally Bank, Member FDIC