Roth IRAs are a popular retirement account option for a reason. This is because they are easy to open with an online broker and, historically, offer an average annual return of 7 to 10%. Roth IRAs take advantage of capitalization, meaning that even small contributions can grow significantly over time. That's why it's important to open a Roth IRA sooner rather than later.
That means you'll be more prepared for retirement the longer your money has to grow. Some banks may offer more competitive rates for five-year IRA CDs, for example, but not for six-month IRA CDs. If the term of the IRA CD expires within a traditional IRA, you can keep those funds in the IRA but use them to make other investments. Alliant IRA certificates are available as traditional IRA, Roth IRA and SEP IRA (simplified employee pension).
If you're about to retire and want your money to be more liquid, consider transferring the IRA CD to an IRA savings account or to an IRA money market account instead of another IRA CD. In this way, Roth IRAs are the opposite of traditional tax-deferred or 401 (k) IRAs; with those accounts, you'll have to pay taxes when you withdraw the funds. If your IRA invests heavily in risky assets, depositing money in an IRA CD can help you diversify your portfolio. Check with your bank to ensure that the funds don't have to be in this IRA savings account or IRA money market account for a certain period of time.