IRA & Retirement Banking

IRA CDs & IRA Savings
Tax-Advantaged Growth

Combine the guaranteed, fixed rates of a Certificate of Deposit with the tax advantages of an Individual Retirement Account. Federal Crown Bank offers both Traditional and Roth IRA options — in CD and savings formats — all FDIC insured up to $250,000. The 2025 annual IRA contribution limit is $7,000 ($8,000 if age 50+).

Open an IRA View Featured CD Rates

Tax-Advantaged

Traditional & Roth IRA Growth

$250K

FDIC Coverage on IRA Deposits

$1,000

Minimum for IRA CD

$7,000

2025 Annual Contribution Limit

IRA Features

Six Ways IRA Banking at FCB Works for You

Whether you're just starting to save for retirement or optimizing an existing nest egg, Federal Crown Bank's IRA CD and IRA Savings products offer predictability, security, and meaningful tax benefits you won't find in taxable accounts.

Traditional or Roth — Your Choice

Choose a Traditional IRA for potential tax-deductible contributions and tax-deferred growth, or a Roth IRA for after-tax contributions and completely tax-free qualified withdrawals in retirement. Both options are available for IRA CDs and IRA Savings accounts.

IRA CD — Guaranteed Fixed Rate

An IRA CD locks in a guaranteed interest rate for a set term (3 months to 10 years), regardless of market movements. Your rate, term, and projected earnings are known from day one — ideal for savers who want certainty in their retirement planning.

IRA Savings — Flexible Access

The IRA Savings account works like a regular savings account but within the tax-advantaged IRA wrapper. There is no fixed term, no early withdrawal penalty from the account itself (though IRS penalties for under-59½ withdrawals may still apply), and you can add contributions throughout the year up to the annual limit.

Rollover & Transfer Support

Rolling over a 401(k), 403(b), or another IRA to Federal Crown Bank? Our dedicated IRA specialists guide you through the entire process. Direct rollovers and trustee-to-trustee transfers avoid tax withholding. Most rollovers complete within 5–7 business days.

Separate FDIC Coverage on IRAs

IRA deposits at Federal Crown Bank are insured separately from your regular deposit accounts. The FDIC provides up to $250,000 of coverage specifically for all IRA funds combined — in addition to, not counting against, your standard $250,000 in deposit account coverage.

Preferred Rewards Integration

IRA CD and IRA Savings balances count toward your Preferred Rewards qualifying balance total. Growing your retirement savings at FCB can help you advance to higher Preferred Rewards tiers, unlocking rate bonuses on all your FCB accounts and credit card rewards multipliers.

IRA CD Rates

Current IRA CD Rates — April 2025

IRA CD rates mirror standard CD rates and are fixed for the full term. Your rate is locked at account opening and does not change — regardless of market conditions. Available for both Traditional and Roth IRA.

Term	Interest Rate	APY	Min. Deposit	IRA Wrapper	Early Withdrawal Penalty
3 Months (90 Days)	3.92%	3.94%	$1,000	Traditional or Roth	90 days of interest
6 Months (182 Days)	4.46%	4.50%	$1,000	Traditional or Roth	180 days of interest
7 Months — Featured IRA CD BEST RATE	4.963%	5.00%	$1,000	Traditional or Roth	180 days of interest
12 Months (1 Year)	4.16%	4.20%	$1,000	Traditional or Roth	180 days of interest
18 Months	3.71%	3.75%	$1,000	Traditional or Roth	365 days of interest
24 Months (2 Years)	3.22%	3.25%	$1,000	Traditional or Roth	365 days of interest
36 Months (3 Years)	2.97%	3.00%	$1,000	Traditional or Roth	365 days of interest
48 Months (4 Years)	2.85%	2.87%	$1,000	Traditional or Roth	365 days of interest
60 Months (5 Years)	2.73%	2.75%	$1,000	Traditional or Roth	365 days of interest

APY = Annual Percentage Yield. Rates effective as of April 2025 and subject to change. Early withdrawal from an IRA CD triggers both the bank's CD penalty and potential IRS 10% early distribution penalty if under age 59½. IRA CDs are FDIC insured separately from non-IRA deposits.

Product Comparison

IRA CD vs. IRA Savings vs. Regular CD

Understanding the key differences between these three products will help you decide how to allocate retirement contributions for maximum tax efficiency and returns.

Feature	IRA CD	IRA Savings Account	Regular CD (Non-IRA)
Tax treatment	Tax-deferred (Traditional) or tax-free (Roth)	Tax-deferred or tax-free	Interest taxable each year
Annual contribution limit	$7,000 / $8,000 (age 50+) for 2025	$7,000 / $8,000 (age 50+)	No limit
Rate type	Fixed for term	Variable	Fixed for term
Minimum deposit	$1,000	$25	$1,000
Access to funds before maturity	CD penalty + possible IRS penalty	Possible IRS penalty only (under 59½)	CD penalty only
Required Minimum Distributions (RMDs)	Yes, Traditional IRA at age 73	Yes, Traditional IRA at age 73	No (not an IRA)
FDIC coverage	$250K separate IRA category	$250K separate IRA category	$250K standard deposit category
Preferred Rewards counting balance	Yes	Yes	Yes
Best for	Retirement contributions, guaranteed rate	Flexible retirement contributions	Max yield, non-retirement funds

Choose Your IRA Type

Traditional IRA vs. Roth IRA

Traditional IRA CD / Savings

Tax-Deferred Growth

Contributions may be tax-deductible

Contributions may be fully or partially tax-deductible depending on income and workplace plan coverage
Earnings grow tax-deferred — no taxes owed until withdrawal
Required Minimum Distributions (RMDs) begin at age 73
Withdrawals taxed as ordinary income in retirement
Best if you expect to be in a lower tax bracket in retirement
No income limit for contributions (deductibility may be limited)

Open Traditional IRA

Tax-Free in Retirement

Roth IRA CD / Savings

Tax-Free Growth

Qualified withdrawals are 100% tax-free

After-tax contributions — no upfront deduction
All qualified withdrawals in retirement are completely tax-free
No Required Minimum Distributions during owner's lifetime
Contributions (not earnings) can be withdrawn anytime penalty-free
2025 income limit: $161,000 single / $240,000 married (phase-out begins)
Best if you expect to be in a higher tax bracket in retirement

Open Roth IRA

Contribution Limits

2025 IRA Contribution Limits by Age

The IRS sets annual IRA contribution limits. Contributing the maximum each year — especially in a high-rate IRA CD — maximizes the compounding power of tax-advantaged growth.

Age Group	Annual Limit (2025)	Notes
Under age 50	$7,000	Or 100% of taxable compensation if less
Age 50 and older	$8,000	Includes $1,000 catch-up contribution
Contribution deadline	April 15, 2026 (for 2025 tax year)
Roth phase-out (single)	$146,000–$161,000 MAGI in 2025
Roth phase-out (married)	$230,000–$240,000 MAGI in 2025
Traditional deductibility phase-out (w/ plan)	$77,000–$87,000 single; $123,000–$143,000 married

Contribution tip: You may contribute to both a Traditional and Roth IRA in the same year, but your combined contributions cannot exceed the annual limit ($7,000 or $8,000). Spreading contributions across both types can provide tax diversification in retirement.

IRA Rollover Process

Rolling Over from a 401(k) or Another IRA

Moving an old employer 401(k) or an existing IRA to a Federal Crown Bank IRA CD is straightforward when done as a direct rollover or trustee-to-trustee transfer. No tax withholding, no penalties.

Open Your FCB IRA

Start by opening a Traditional or Roth IRA at Federal Crown Bank online or at any banking center. You do not need to fund it with your own money to initiate the rollover.

Contact Your Previous Provider

Call your former 401(k) plan administrator or IRA custodian and request a direct rollover to Federal Crown Bank. Provide your new FCB IRA account number.

Choose Direct Rollover

Request a "direct rollover" (check payable to Federal Crown Bank FBO [Your Name]) or a "trustee-to-trustee transfer." This avoids mandatory 20% tax withholding that applies to indirect rollovers.

Funds Are Received

Your previous provider sends funds directly to Federal Crown Bank. Most transfers complete in 5–10 business days. You can then allocate funds to an IRA CD or leave them in IRA Savings temporarily.

Invest in an IRA CD

Once funds arrive, lock in your chosen IRA CD term and rate. Interest starts accruing immediately and grows tax-deferred (Traditional) or tax-free (Roth) for the full term.

Rollovers from Roth 401(k) accounts go into Roth IRAs; Traditional 401(k) accounts go into Traditional IRAs (or a Roth IRA with conversion tax event). Consult your tax advisor before converting to Roth.

Frequently Asked Questions

IRA Rules — Answers to the Most Common Questions

What is the penalty for withdrawing from an IRA CD before age 59½?

There are potentially two separate penalties to consider. First, the IRA CD itself carries an early withdrawal penalty set by Federal Crown Bank — for CDs with terms of 6–12 months, this is 180 days of interest on the amount withdrawn. Second, and independently, the IRS imposes a 10% early distribution penalty on any funds withdrawn from a Traditional or Roth IRA before age 59½, in addition to ordinary income taxes (for Traditional IRA). Exceptions to the IRS penalty include first-time home purchase (up to $10,000 lifetime), qualified higher education expenses, death or disability, and certain medical expenses. Roth IRA contributions (but not earnings) can always be withdrawn without penalty at any age.

What are Required Minimum Distributions (RMDs) and do IRA CDs have them?

Required Minimum Distributions are mandatory annual withdrawals the IRS requires from Traditional IRAs starting at age 73 (as set by the SECURE 2.0 Act). The RMD amount is calculated based on your account balance as of December 31 of the prior year divided by your IRS life expectancy factor. IRA CDs are subject to RMD rules — if your CD matures before your RMD deadline, you can withdraw the RMD and renew the remainder. If your CD has not matured, you can withdraw the RMD amount from the CD without paying a bank early withdrawal penalty during the RMD window, per Federal Crown Bank's RMD policy. Roth IRAs have no RMD requirement during the account owner's lifetime.

Can I hold both a Traditional IRA and a Roth IRA at Federal Crown Bank?

Yes, you can hold both a Traditional IRA and a Roth IRA simultaneously at Federal Crown Bank. You may even contribute to both in the same tax year — however, your combined annual contributions across all IRAs cannot exceed the IRS limit ($7,000 for 2025, $8,000 if age 50+). For example, you could contribute $3,500 to a Traditional IRA CD and $3,500 to a Roth IRA Savings account. Holding both types provides tax diversification — Traditional IRA gives you a tax break today while Roth IRA gives you tax-free income in retirement. A qualified tax advisor can help you determine the optimal contribution split for your situation.

What is the difference between an IRA rollover and an IRA transfer?

An IRA transfer (also called a trustee-to-trustee transfer) occurs when funds move directly from one IRA custodian to another — from your previous bank to Federal Crown Bank — without the funds ever being distributed to you. Transfers are not reported to the IRS as distributions and can be done an unlimited number of times per year without triggering any tax event or withholding. An IRA rollover, by contrast, involves funds being distributed to you first, and then you have 60 days to deposit the funds into a new IRA. The IRS allows only one indirect (60-day) rollover per 12-month period across all your IRAs. A direct rollover from a 401(k) has no such limit. To avoid unnecessary complexity and tax risk, Federal Crown Bank recommends trustee-to-trustee transfers whenever possible.

Is my IRA CD insured separately from my regular bank accounts?

Yes — FDIC coverage for IRA accounts is calculated separately from your standard deposit account coverage. The FDIC insures your IRA deposits (including IRA CDs and IRA Savings) at Federal Crown Bank up to $250,000 in total across all IRA-type accounts, including both Traditional and Roth IRA balances combined. This $250,000 in IRA coverage is entirely separate from and in addition to the $250,000 you receive for your standard individual accounts and the $500,000 joint account coverage. So, a customer could theoretically be insured for $750,000+ in total by having all three ownership categories fully funded at Federal Crown Bank. Federal Crown Bank is a Member FDIC and all deposit accounts — IRA and non-IRA — carry this protection.

Start Building Tax-Advantaged Retirement Savings Today

Open an IRA CD or IRA Savings account online or at any Federal Crown Bank banking center. Traditional and Roth options available. FDIC insured. Rollovers welcome.