There are some benefits of holding CDs in an IRA. If you open an IRA CD at a bank backed by the Federal Deposit Insurance Corp. (FDIC), up to $250,000 will be protected by the U.S. government. If your bank goes belly up, you’re guaranteed to get your savings back.
“Every time you place a trade, there might be a charge. And if you hire a financial adviser to manage your investments, the adviser might charge you a fee as well,” says Denise Appleby, CEO of Appleby Retirement Consulting in Grayson, Georgia.