Individual Retirement Account (IRA) CDs

Grow your nest egg
with an IRA CD

Benefit from tax-advantaged earnings.

Open an IRA CD account

Overview

IRAs are a mainstay of many retirement strategies. By adding a fixed rate certificate of deposit to your retirement plan, you can increase your savings by earning guaranteed, tax-advantaged interest.

  • Choose a term from 3 months to 5 years, with a broad selection of competitive, tax-advantaged APYs. View all terms and rates.
  • Open the best type of IRA for your needs: Traditional, Roth, SEP, or Coverdell Education Savings Accounts. note 1
  • Enjoy peace of mind with FDIC insurance.
  • Gain superior account protection and security with Wachovia Security PlusSM.
  • Rollover your CD easily when it matures with our automatic renewal option.

What You Get

With a Wachovia IRA CD, you get guaranteed earnings with tax advantages that enable you to grow your retirement savings faster.

Your Choice of IRA Types

Wachovia offers the most popular types of personal IRAs. We recommend that you consult your tax advisor to decide which type best fits your needs:

  • Traditional IRA: Your annual contributions may be tax deductible in the year you make them. Earnings are tax-deferred — you pay taxes on the earnings when you withdraw them (generally after age 59½).
  • Roth IRA: Your annual contributions are not tax-deductible the year you make them, but the earnings are tax-free when you make qualified withdrawals note 4 from the account.

Wachovia also offers SEP IRAs for the self-employed, and Coverdell Education Savings Accounts, a tax-advantaged plan to help build a college education fund for a minor.

How Your Money Grows

You earn interest from the date of your first deposit up to the date of your last withdrawal. Your interest compounds daily, and is credited monthly or quarterly and at maturity. We calculate interest using the daily-balance method, which applies a daily rate to the account balance each day using actual calendar days, months, and years.

When You Can Deposit Additional Funds

You can add more money to your IRA CD on the maturity date and for the seven days immediately following. For 2008, the maximum IRA regular contribution you can make is $5,000 if you are under 50, and $6,000 if you are 50 or over. Rollover contributions, eligible funds from other qualified retirement plans and other IRAs, may also be made on the maturity date and the seven days immediately following.

What Happens When Your IRA CD Matures

We'll send you a reminder before your maturity date. You'll have a seven-day grace period after the maturity date to renew, change your term, or withdraw your funds without penalty. Unless you instruct us otherwise, we'll automatically renew your account for the same term, at the interest rate in effect at that time. Renewing your IRA CD with Wachovia will not result in taxable income or distribution the year of the renewal.

Interest will not be paid during the grace period if you withdraw your funds and do not reinvest with Wachovia.

Avoid Withdrawals of Principal before Your Maturity Date

Withdrawals of principal before your maturity date may result in a penalty, which is based upon the term of your account and the amount withdrawn:

  • On terms up to and including 90 days, all interest earned
  • On terms of 91 through 364 days, 90 days' interest
  • On terms of 365 days and greater, 180 days interest

Withdrawals from a Traditional IRA CD may also result in taxable income the year of the withdrawal as well as tax penalties if you make the withdrawal before age 59½ (unless other exceptions apply).

Free Online Banking

Check account balances anytime, anywhere. Transfer funds between your eligible Wachovia accounts and your non-Wachovia accounts at other financial institutions note 5; receive and view bank statements online, set up Balance Alerts, or manage your accounts from your mobile device note 6 with Wachovia MobileSM.

FDIC Insured

Your retirement deposits are FDIC insured up to at least $250,000 per depositor. FDIC insurance on your Wachovia retirement deposits is separate from the non-retirement deposits you have with Wachovia. For non-retirement deposits, you can have much more FDIC protection by having more than one type of account ownership at Wachovia. For example individual and joint accounts are insured separately, so you can have up to $100,000 in an individual account and up to another $100,000 in joint accounts, so your total deposits can be insured up to $200,000. Other ownerships may qualify for even more FDIC coverage.

Please see FDIC: Insuring Your Deposits for more information.

Wachovia Security PlusSM — Account Security and Identity Protection

With Wachovia Security PlusSM, you have many layers of protection to help keep you safe from fraud and identity theft, including account protection service, fraud monitoring technology and consumer education and awareness. With our Online Services Guarantee we are dedicated to providing you a safe and dependable service for accessing your financial information online.

Rates & Fees

3-6 Month Term
Balance Tier Interest Rate APY note 3
$0 - $9,999 1.00% 1.01%
$10,000 - $49,999 1.05% 1.06%
$50,000 - $99,999 1.10% 1.11%
$100,000+ 1.15% 1.16%
6-12 Month Term
Balance Tier Interest Rate APY note 3
$0 - $9,999 1.10% 1.11%
$10,000 - $49,999 1.15% 1.16%
$50,000 - $99,999 1.20% 1.21%
$100,000+ 1.25% 1.26%
12-18 Month Term
Balance Tier Interest Rate APY note 3
$0 - $9,999 1.20% 1.21%
$10,000 - $49,999 1.30% 1.31%
$50,000 - $99,999 1.40% 1.41%
$100,000+ 1.50% 1.51%
18-24 Month Term
Balance Tier Interest Rate APY note 3
$0 - $9,999 1.78% 1.80%
$10,000 - $49,999 1.78% 1.80%
$50,000 - $99,999 1.78% 1.80%
$100,000+ 1.78% 1.80%
24-36 Month Term
Balance Tier Interest Rate APY note 3
$0 - $9,999 1.78% 1.80%
$10,000 - $49,999 1.78% 1.80%
$50,000 - $99,999 1.78% 1.80%
$100,000+ 1.78% 1.80%
36-48 Month Term
Balance Tier Interest Rate APY note 3
$0 - $9,999 1.88% 1.90%
$10,000 - $49,999 1.98% 2.00%
$50,000 - $99,999 2.08% 2.10%
$100,000+ 2.18% 2.20%
48-60 Month Term
Balance Tier Interest Rate APY note 3
$0 - $9,999 2.18% 2.20%
$10,000 - $49,999 2.27% 2.30%
$50,000 - $99,999 2.37% 2.40%
$100,000+ 2.47% 2.50%
60+ Month Term
Balance Tier Interest Rate APY note 3
$0 - $9,999 2.47% 2.50%
$10,000 - $49,999 2.57% 2.60%
$50,000 - $99,999 2.66% 2.70%
$100,000+ 2.76% 2.80%

FAQs

About IRAs

About CDs (including IRA CDs)

About IRAs

What is an IRA?

IRA stands for Individual Retirement Account, a savings account with tax advantages for people setting aside money for retirement.

What is an IRA contribution?

A contribution is a deposit you make to your IRA.

How much can I contribute annually to my IRA?

That depends on your age and your earned income, as well as certain federal limits. For 2008, the maximum contributions are $5,000 if you are under 50, and $6,000 if you are 50 or over.

What is an IRA distribution?

When you make a withdrawal from your IRA, it is called a distribution.

What is a Rollover IRA?

If you have an employer-sponsored retirement plan, such as a 401K or other tax-deferred accounts, you may be eligible to move the money into a rollover IRA without incurring a tax liability. Be sure you understand rollover regulations in order to make sure you avoid tax consequences. We recommend consulting your tax advisor before you complete a rollover.

What are mandatory IRA distributions?

For a Traditional IRA, you must start taking IRA distributions beginning at age 70½. The amount of the mandatory distribution is determined based on your age. With a Roth IRA, there is no mandatory age for distribution.

What's the difference between a Traditional IRA and a Roth IRA?

A Traditional IRA is a tax-deferred retirement investment. With a Traditional IRA, annual contributions may be tax-deductible and earnings are not taxed until you withdraw the money. When you take distributions after age 59½ (or other qualifying reasons including disability and death), the taxable portion of your withdrawal is taxed at your current tax rate, which is typically less than during your prime earning years. No further contributions can be made past the age of 70½.

A Roth IRA is a tax-exempt retirement investment. With a Roth IRA, your annual contributions are not tax-deductible. However, when you withdraw the money, all of it, including your earnings, is tax-free, once you have a Roth IRA for more than five years and you are over the age of 59½ (or other qualified withdrawal reasons). Contributions may continue past age 70½.

We recommend that you consult your tax advisor to determine whether a Traditional or Roth IRA is best for your situation.

At what age can I take IRA distributions without a penalty?

For a Traditional IRA, distributions may be taken without a penalty starting at age 59½, or at disability or death, although amounts may still be subject to regular income tax. The federal tax penalty on distributions you take before age 59½ is 10% of the distribution amount that you have to include in gross income. State taxes vary based on your individual state tax codes. There are other reasons funds may be withdrawn from your Traditional IRA without federal or state taxes, so you should always consult with a professional tax advisor before taking a withdrawal from any IRA. At any age, the distribution may be subject to regular income tax in whole or in part. With a Roth IRA, contributions may always be withdrawn with no tax penalties at any age as long as the distributions meet certain requirements. Earnings from a Roth IRA deemed "Qualified distributions" may be made tax-free. Again, you should always consult with a professional tax advisor before taking a withdrawal from any IRA.

Where can I find more frequently asked questions about IRAs?

More questions and answers are available in our Personal Finance FAQs for IRAs.

About CDs (including IRA CDs)

How does a Certificate of Deposit (CD) work and what reasons do I have for opening one?

A Certificate of Deposit is a financial product that pays you a guaranteed interest rate for a set period of time, which is known as the term. The term can range from a few months to several years. There are a number of reasons to open a CD:

  • CDs typically pay higher interest rates than other financial deposit products, such as savings or money market deposit accounts. All these accounts are however, subject to fluctuations in the economy.
  • The rate of a CD is set at the time you open the account and cannot change until the CD matures at the end of its term. Rates on savings and money market accounts are generally variable and can decrease or increase.
  • Wachovia CDs are protected by FDIC insurance to the legal maximum.

What's the minimum amount required to open a CD account?

The minimum deposit for a Wachovia Featured CD is $5,000 and for a fixed rate CD is $1,000.

Can I deposit more funds into my CD account after it's open?

With a fixed rate CD, you can deposit additional funds when you renew it on the maturity date and during the seven days immediately following the maturity date. You can make deposits during the term with a Liquid CD.

Can I withdraw funds from my CD?

For a fixed rate CD, as long as the principal is not reduced, you can withdraw the interest earned on your CD account without bank penalty at any time. You can also set up regular interest payments from your CD by check or transfer to another Wachovia savings or checking account. (Remember that withdrawals from IRA CDs may have tax penalties and/or other tax consequences if the withdrawal or distribution does not meet certain withdrawal conditions.) The interest paid to you reduces the amount of future earnings.

Withdrawals of principal before your CD matures will result in a bank penalty, which is based on the term of your CD account and the amount withdrawn. On terms:

  • Up to and including 90 days, all interest earned
  • 91 through 364 days, 90 days' interest
  • 365 days and greater, 180 days' interest

You can make withdrawals without penalty at specific time intervals from our Liquid CD and our 24-Month Step Rate CD.

How will I know when my CD is maturing?

You will receive a reminder in the mail well in advance of the maturity date.

What are my options when my CD matures?

You'll have a seven day grace period after the maturity date to renew, change your term, or withdraw your funds without penalty. Unless you instruct us otherwise, we'll automatically renew your account for the same term, at the interest rate in effect at that time.

Will I receive a monthly statement for my IRA CD?

You will receive a statement at least annually for your IRA CDs. Also,you can keep track of your CD balance and interest payments through Wachovia Online Banking. It's easy to enroll, simply go to wachovia.com/enroll. Online Banking gives you convenient and secure, 24/7 access to all your Wachovia accounts and balances. You may also call 800-WACHOVIA (800-922-4684), 24 hours a day, seven days a week — to keep track of your CD balance. You can also call this number to have your IRA CD information included in your monthly checking statement by adding your IRA CDs to your checking account.

What is FDIC Insurance?

FDIC stands for the Federal Deposit Insurance Corporation, which is an independent agency of the U.S. Government. The FDIC insures deposits at all federal and some state-chartered banks, savings associations, and industrial loan companies. Wachovia is a member of the FDIC.

Please see FDIC: Insuring Your Deposits for more information.

Can I make automatic transfers from my checking account to my CD?

Because deposits to your CD are limited, automatic transfers are not permitted.

Do I need to open a checking account in order to get a CD?

For our Featured CD, you will need a Wachovia checking account. We offer a wide variety of checking choices, including our popular Free Checking account.

Where can I find more frequently asked questions about Wachovia Savings Accounts and CDs?

More questions and answers are available in our Personal Finance FAQs.

Open an IRA CD account

How to Open an Account

How to Open a New Account

It's easy and takes less than 8 minutes. For yourself and each joint account holder (if applicable), you'll need an identification number (driver's license, state ID, military ID). If you're already a Wachovia customer, it will go even faster if you have your Online Banking user ID and Password. Forget your password?

Back to "How to apply"

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Serving you is our top priority at Wachovia — #1 in customer satisfaction for seven years running. note 2

Make the Most of Your Account

Learn about managing your account. Also find out how Wachovia Security PlusSM protects you.