What’s a 360 IRA CD®?

An Individual Retirement Account (IRA) is a tax-advantaged way for just about anyone with earned income to save for retirement. When you open a Capital One 360 IRA CD, you’ll have the option of selecting between a Traditional IRA or a Roth IRA.

Traditional IRAs and Roth IRAs differ in several ways, including their tax treatment. Contributions to Traditional IRAs may be tax-deductible, and earnings within the account aren’t taxed until the funds are withdrawn. On the other hand, contributions to Roth IRAs are made on an after-tax basis, meaning both earnings and eligible withdrawals are tax-free. For more details on how they differ, take a look at this chart from the IRS. As always, consult your tax advisor for additional information.

A 360 IRA CD provides a guaranteed return, with a variety of terms to choose from, so you’ll know exactly what you’ll earn and for how long. When you open a 360 IRA CD, a 360 IRA Savings account will automatically be created so you can make contributions, receive interest disbursements, or setup rollovers or transfers. You’ll also be able to transfer your IRA CD funds to your IRA Savings account upon maturity. Both accounts are FDIC-insured up to allowable limits, and you’ll never pay monthly fees while you’re building your nest egg. Learn more about IRA Savings accounts here.

A 360 IRA CD is tax-advantaged and intended for saving for retirement. If your savings goals are more short-term, you may want to explore non-IRA 360 CDs® and 360 Savings® accounts. Just remember, they won’t have the same kind of tax advantages as an IRA.

Having plenty of savings options means you can choose the level of commitment that’s just right for you. Capital One offers non-IRA products, including 360 CDs with terms from 6 to 60 months, a 360 Savings account with no minimum balance requirements, and more. Take a look around to see what fits your savings goals.