12 Types Of CDs That Could Boost Your Savings

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12 Types Of CDs That Could Boost Your Savings

10. IRA CD

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If you’re risk-averse and want to start saving for your retirement with the help of a CD, then an IRA CD might be best for you. It’s a taxed advantaged individual retirement account that will protect up to $250,000 if you purchase the CD from an FDIC-insured institution.

However, young investors should consider other options. It’s a good idea to avoid risk as you grow older, which is why these may be advantageous to those who are closer to retirement who also want to diversify their portfolios. But younger people still have a lot of mobility and time with their money, so IRA CDs aren’t ideal.

Financial advisers also say you should fund an IRA CD with money you won’t need nor plan on touching until you’re 59½ in order to avoid taxes on early distributions.

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