Roth IRA accounts usually appeals to workers more than traditional IRA accounts because it is simpler and more flexible. Roth IRA account holders can withdraw their principal contributions anytime without paying additional taxes and penalties. This allows them to have more liberty with regards to their finances. There are also no mandatory contributions.
Though Roth IRA account provides great benefits and would usually is the best option for most situations, Roth IRA account holders and those that are having other types of IRAs as well must carefully choose the type of investment they want their IRA to hold and find the best IRA rates for their investments. This way they will be able to realize their goals in the future.
One of the best investments that an individual having an IRA account is the certificate of deposits. Certificate of deposits allow investors to have a fixed IRA rate with a fixed term. CDs are somewhat like a regular savings account that you need to make a minimum deposit and from that, you gain interest. However, you should wait for your fixed term to mature before you can get the deposit. The IRA CD rates are usually higher compared to the interest rates of regular savings account. This is because of the fixed term you allow the bank to use your funds in other types of business endeavors such as lending.
The IRA CD rates usually vary depending on the type of CD. Most often than not, you will be able to find the best IRA rates from Jumbo CDs. This type of CDs requires investors to make a large amount of minimum deposit. The minimum of deposit for jumbo CDs vary from one company to another. To find the best rates, you may need to go through different websites of these companies to compare the minimum deposits and the rates.
- IRA: Traditional IRA and Roth IRA (2010tax.org)
- CD Rates: Find the Highest IRA Interest Rates (2009tax.org)