BankDirect Customer Support will be closed for Thanksgiving Day on Thursday, November 25, 2021. We will be back to our normal 8:00 AM to 6:00PM customer support hours on Friday, November 26, 2021.

We have scheduled enhancements for our website on Tuesday, November 2nd, starting at 5:30 PM CST to approximately 7:30 PM CST. During this time, our website may not be available and/or may have reduced functionality.

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Individual Retirement Accounts

    IRA Certificate of Deposit

    BankDirect offers customers a choice between two IRA CDs: traditional IRA or Roth IRA.

    Save for retirement

    Multiple term options

    No distribution fees

      BankDirect does not assess an annual fee, a closeout fee or a distribution fee for our IRA Certificates of Deposit.

      Both traditional and Roth IRAs are available.

      Rates

      account level annual % yield monthly fee
      12-Month CD 0.25% None
      18-Month CD 0.25% None
      24-Month CD 0.25% None
      30-Month CD 0.25% None
      36-Month CD 0.25% None
      48-Month CD 0.25% None
      60-Month CD 0.25% None

      Fees

      • $1,000.00 minimum opening balance

      • Interest compounded daily

      • Interest paid on collected balances

      To view the BankDirect fee schedule, click here.

      Time Account Information:

      Your account will mature for the term as shown on the face of the Certificate of Deposit. If you withdraw any of the principal before the maturity date, we may impose a penalty. For maturities up to 90 days the early withdrawal penalty will be 30 days interest on principal amounts withdrawn. Maturities greater than 90 days but less than 1 year, the early withdrawal penalty will be 90 days of interest on the principal amount withdrawn. Maturities greater than 1 year, the early withdrawal penalty will be 180 days of interest on the principal amount withdrawn. The annual percentage yield assumes interest will remain on deposit until maturity. A withdrawal will reduce earnings. This account will automatically renew at the then current rate. You will have 10 days after the maturity date to withdraw funds without penalty.

      Standard IRA penalties may also apply.

      Please consult your Tax Advisor for tax related questions.

      For a complete list of our banking disclosures, please click here.

      IRA Money Market Account

      Enjoy the convenience and liquidity of a money market account with the safety and security of FDIC insurance.

      To open a BankDirect IRA, please contact Client Support at 1.877.839.2737 to complete an application over the phone with a Client Support Representative or to request a New Account Kit be mailed to you.

      ATM or Visa CheckCards are not available on IRA Money Market Accounts.

      Save for retirement

      High-yield interest

      No distribution fees

        Instead of funding your IRA in one lump sum, you can make recurring deposits as often as you like.

        • Additional deposits allowed ($100 minimum per additional deposit)

        • No time commitment — can be withdrawn or transferred at any time

        • No bank-imposed early withdrawal penalties
          (Standard IRA penalties may apply)

        • Interest earnings compounded daily and credited monthly

        • Convenient monthly statement

        • Can be used for contributions or rollovers from other funds

        Rates

        account levelannual % yieldmonthly fee
        IRA Money Market Account $0.00 to $9,999.990.10%None
        IRA Money Market Account $10,000.00 and Greater0.15%0.50%

        Fees

        • 100.00 minimum opening balance

        • Interest earnings compounded daily and credited monthly

        To view the BankDirect fee schedule, click here.

        IRA deposits in a Traditional or Roth accounts are FDIC insured. IRA accounts are insured separately from any non-retirement funds on deposit.

        An Annual Percentage Yield (APY) is calculated based on a one-year time frame. If you allow your interest to add back to the principal over a one-year time period, the Annual Percentage Yield is what you will receive. Fees may reduce earnings on accounts. Rates are subject to change. Please consult your Tax-advisor for Tax-Related questions.

        For a complete list of our banking disclosures, please click here.

        Open an Individual Retirement Account

        Traditional IRA account

        Complete, print and mail back the following forms:

        1. BankDirect IRA Application, plus

        2. Traditional IRA Application

        3. IRA Rollover Review (if applicable)

        Other important forms:

        1. Traditional IRA Contribution Form

        2. Traditional IRA Distribution Form

        3. Transfer/Rollover/Conversion Form

        Print and mail with your initial deposit to:

        BankDirect
        IRA Department
        P.O. Box 809017
        Dallas, Texas 75380-9779

        Roth IRA account

        Complete, print and mail back the following forms:

        1. BankDirect IRA Application, plus

        2. Roth IRA Application

        Other important forms:

        1. Roth IRA Contribution Form

        2. Roth IRA Distribution Form

        3. Transfer/Rollover/Conversion Form

        Print and mail with your initial deposit to:

        BankDirect
        IRA Department
        P.O. Box 809017
        Dallas, Texas 75380-9779

        IRA Frequently Asked Questions

            The money you contribute to a Roth IRA has already been taxed and the principal amount is not subject to taxes or penalties as long as you stay within the contribution guidelines.

            This retirement plan allows the money you contribute to grow tax-deferred. If you do not withdraw any of the earnings until you have had the Roth IRA for at least five years, those tax-deferred earnings become tax-free.

            There is no IRS age limit for contributions or distributions.

            Anyone can contribute to an IRA that is under the age of 70 1/2 for the year that contribution is being made, and have earned income from employment equal to or greater than your IRA contribution.
             

            For 2021, 2020 and 2019, the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than:

            • $6,000 ($7,000 if you're age 50 or older), or

            • If less, your taxable compensation for the year
               

            For 2018, 2017, 2016 and 2015, the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than:

            • $5,500 ($6,500 if you're age 50 or older), or

            • If less, your taxable compensation for the year
               

            The IRA contribution limit does not apply to:

            • Rollover contributions

            • Qualified reservist repayments

            • Retirement plan at work: Your deduction may be limited if you (or your spouse, if you are married) are covered by a retirement plan at work and your income exceeds certain levels.

            • No retirement plan at work: Your deduction is allowed in full if you (and your spouse, if you are married) aren’t covered by a retirement plan at work.

            There are significant benefits to making an IRA contribution even if it is not currently tax deductible.

            A non-deductible contribution grows tax-deferred, with earnings sheltered from taxation until withdrawn, and has already been taxed, and will not be taxed again.

            Yes, simply withdraw your IRA savings from your current financial institution and open a new IRA at BankDirect with the "Rollover" funds. You may request that we obtain your IRA savings from your current financial institution as a ”Trustee-to-trustee” transfer.

            Yes, if you meet other requirements, you are eligible to contribute to an IRA even if you are participating in a retirement savings plan at work. However, you may not be able to make a deductible contribution. For deductibility guidelines, please consult your tax/financial advisor.

            Once you reach the age of 59½ (or any time after that), you can withdraw any or all of your IRA savings. These distributions may be subject to taxation and must begin at age 70½.

            If you withdraw any of your IRA savings before the age of 59½, in addition to ordinary income tax liability that you may have on the money you have taken out, you may have to pay a 10% penalty on your withdrawal amount. You can avoid the penalty if you use the money for qualified higher education expenses, qualified first-time home purchase (up to a max of $10,000), or qualified permanent disability.

              This table shows whether your contribution to a Roth IRA is affected by the amount of your modified AGI as computed for Roth IRA purpose.

              If your filing status is... And your modified AGI is... Then you can contribute...
              Married filing jointly or qualifying widow(er) < $198,000 up to the limit
              > $198,000 but < $208,000 a reduced amount
              > $208,000 zero
              Married filing separately and you lived with your spouse at any time during the year < $10,000 a reduced amount
              > $10,000 zero
              Singlehead of household, or married filing separately and you did not live with your spouse at any time during the year < $125,000 up to the limit
              > $125,000 but < $140,000 a reduced amount
              > $140,000 zero

              Amount of your reduced Roth IRA contribution

              If the amount you can contribute must be reduced, figure your reduced contribution limit as follows.

              1. Start with your modified AGI.

              2. Subtract from the amount in (1):

                1. $198,000 if filing a joint return or qualifying widow(er),

                2. $-0- if married filing a separate return, and you lived with your spouse at any time during the year, or

                3. $125,000 for all other individuals.

              3. Divide the result in (2) by $15,000 ($10,000 if filing a joint return, qualifying widow(er), or married filing a separate return and you lived with your spouse at any time during the year).

              4. Multiply the maximum contribution limit (before reduction by this adjustment and before reduction for any contributions to traditional IRAs) by the result in (3).

              5. Subtract the result in (4) from the maximum contribution limit before this reduction. The result is your reduced contribution limit.

              See IRS Publication 590-A, Contributions to Individual Retirement Accounts (IRAs), for a worksheet to figure your reduced contribution.

              With the Roth IRA, there is no 70½ age limit on making contributions. You simply need to have earned income equal to the amount you contribute up to a maximum amount set each year.

              You can withdraw contributions (excluding conversion) at any time. Distributions that meet the requirements as noted below are referred to as "Qualified distributions".

              • You are at least age 59½

              • You suffer a qualified disability

              • Upon death

              • Funds are used for a qualified first-time home purchase, and

              • After the end of the applicable 5-year period

              While you may take distributions from your Roth IRA at any time, distributions which are not qualified distributions may be subject to taxes (and in some cases early distribution penalties) to the extent that exceed your aggregate contributions to Roth IRAs.

              Learn More at IRS.gov.