When most people think about IRAs, they picture market-based accounts filled with mutual funds, stocks, and fluctuating returns. Those can be excellent tools for long-term growth, and the credit union’s financial advisors can help you explore those options, too.
But one retirement savings opportunity that often goes overlooked is right here at the credit union. Our Savings, Money Market and Certificate IRAs offer guaranteed returns, predictable growth, and complete peace of mind. They’re ideal for anyone who wants to build retirement savings without taking on market risk - or for investors who wish to protect part of their nest egg from volatility.
Whether you’re just starting your career or approaching retirement, a credit union IRA can play an important role in your overall financial plan.
Understanding Credit Union IRAs
Credit union IRAs come in three main types: Savings IRAs, Money Market IRAs and Certificate IRAs. All earn guaranteed returns and are federally insured by the NCUA (National Credit Union Administration) up to applicable limits.
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A Savings IRAs and Money Market IRAs work much like a standard savings or money market account, offering steady dividends and easy access to your funds.
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A Certificate IRA offers higher fixed rates for a specified term, similar to a share certificate or certificate of deposit (CD).
While these aren’t invested directly in the market, they’re designed for members who value stability and predictable growth. Many use them to balance out higher-risk investments in their portfolios.
Why Credit Union IRAs Deserve a Place in Your Plan
Even if you already contribute to an employer 401(k) or market-based IRA, keeping a portion of your savings in a credit union IRA can be a smart way to diversify and protect your future. Here’s why.
#1 - A Confident Start for Young Adults
If you’re early in your career, it’s easy to feel uncertain about where to start saving. Market-based investing can seem intimidating, especially if you don’t want to risk losing money you’ve worked hard to earn.
A Savings, Money Market and Certificate IRAs provide a safer starting point. You’ll enjoy guaranteed returns, steady growth, and the reassurance that your balance won’t shrink during market downturns. Over time, those consistent earnings can make a real difference.
Choosing a Roth IRA can be especially powerful at this stage. Since contributions are made with after-tax dollars, your withdrawals in retirement are completely tax-free. You’ll also have the flexibility to withdraw contributions (but not earnings) anytime without penalties if you ever need to access funds.
#2 - A Safe Harbor for Transitioning Retirees
For members in their early to mid-50s with retirement right around the corner, protecting savings becomes the top priority. You’ve spent decades building retirement funds - now it’s about keeping them safe.
A Certificate IRA is a great way to shield part of your savings from market swings while still earning a competitive, guaranteed rate. Many members move a portion of their investments into Certificate IRAs each year as they approach retirement. This steady, step-by-step approach creates a reliable income source and greater financial confidence.
#3 - Stability When the Market Feels Uncertain
Even seasoned investors can feel uneasy when the markets fluctuate. With Certificate IRA rates still relatively high, now is an excellent time to lock in guaranteed growth for part of your portfolio.
Here’s an example to consider:
If you contribute $7,000 this year (the 2025 annual IRA limit for individuals under 50), you could place 25% ($1,750) in a Credit Union Certificate IRA earning a fixed yield and 75% ($5,250) in a market-based IRA.
If the markets perform well, you benefit from the growth. But if they dip, that guaranteed portion helps stabilize your savings. It’s a smart balance between opportunity and security.
Traditional vs. Roth IRAs: How They Differ
Both Traditional and Roth IRAs are available through the credit union, and the best option depends on your goals and tax situation.
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Traditional IRA: Contributions may be tax-deductible now, but withdrawals are taxed in retirement. This option is often best for those who expect to be in a lower tax bracket in the future.
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Roth IRA: Contributions are made with after-tax dollars, but withdrawals are tax-free in retirement. It’s a popular choice for younger savers who expect their income to grow over time.
Both options provide guaranteed returns, flexible contribution options, and federal insurance by the National Credit Union Administration (NCUA) for peace of mind.
Partnering with Financial Advisors
While credit union IRAs focus on safety and guaranteed earnings, the credit union also partners with an experienced financial advisor who can help with market-based IRAs and broader investment planning.
Our advisors can review your full financial picture to ensure your strategy includes the right mix of stability and growth. This partnership allows members to enjoy the security of federally insured credit union products while also exploring diversified investment opportunities.
Contribution Limits & Strategic Planning
Each year, you can contribute up to a set dollar amount. For example, for 2025, the IRS limit is $7,000 per individual for IRA contributions (or $8,000 if you’re age 50 or older). Even if you already invest elsewhere, directing part of those contributions to a credit union IRA helps balance your portfolio with guaranteed returns.
Many members find that dividing their contributions between market-based and credit union IRAs offers the best of both worlds - steady, insured growth alongside long-term potential.
We’re Here to Help!
Saving for retirement doesn’t have to mean taking big risks. A credit union IRA offers guaranteed growth, flexible options, and the security of federal insurance. Whether you’re just starting to save or ready to protect what you’ve already built, our team is here to help you choose the right path forward.
If you want to learn more about our IRA options or would like to speak with one of our financial advisors to review your complete retirement strategy, we’re happy to help. Please call to schedule an appointment today.