Here are our top 5 banks offering the highest APY for a 12 month IRA CD. Compare the below certificate of deposit rates with what was offered in September 2011.

1. Ascencia – 1.13%APY. Minimum amount required to open is $500.

2. Aurora Bank – 1.13%APY. $1,000 minimum is required to open.

3. AloStar Bank of Commerce – 1.12%APY. $1,000 minimum is required to open.

4. Goldwater Bank – 1.12%APY. The bank requires at least $5,000 minimum to open. Quite high for a 1.12%APY rate.

5. AIG Bank – 1.10%APY. Requires $2,500 minimum to open.

The top 5 banks offering the highest APY for a 5 year IRA CD are:

1. First Internet Bank – 2.20%APY. Requires $1,000 minimum to open.

2. American Express – 2.15%APY. Minimum to open is zero.

3. Discover – 2.15%APY. Requires $2,500 minimum to open.

4. Bank of Internet USA – 2.12%APY. $1,000 minimum is required to open.

5. Nova Bank – 2.10%APY. Requires $500 minimum to open.

All of the above IRA CD Rates can be opened online. However, if you are not comfortable banking online then it is best to visit the branch of the bank you choose.

If you are looking for a short term IRA CD say 6 months, the highest offer so far is 1.00%APY offered by Ascensia, a division of PBI Bank, Goldwater Bank and Aurora Bank. For a much shorter term IRA CD or a 3 month IRA CD, the highest rate is 0.91%APY offered by Goldwater Bank. However, this requires at least $5,000 minimum amount to open. These IRA CDs are all available online.

For 10 years CD, below are the highest APYs:

1. 2.50%APY by Discover Bank and Capital One

2. 2.30%APY by Bank of America

3. 2.25%APY by USAA and Discover Bank

• 12 month IRA – 1.21%APY
• 24 moth IRA – 1.37%APY
• 36 month IRA – 1.37%APY

You can open an IRA CD account online, which gives you 24/7 access to your account. If however you are not comfortable opening an online account, then you better visit one of its branch locations.

AloStar also offers Express Deposit that allows you to transfer funds into your AloStar bank account from another financial institution.

AloStar Bank of Commerce, headquartered in Birmingham, Alabama, is the successor of Nexity Bank, which was closed on April 15, 2011 by the State of Alabama Banking Department. The bank does business in 48 states with a commercial office location in Atlanta.

If you are looking for a long term IRA CD, check out the best 7 year IRA CD rates offered by other banks.

Below are updated Discover Bank CD Rates.

3 months  - 0.40%APY

6 months  –  0.80%APY

9 months – 0.90%APY

12 months – 1.10%APY

18 months – 1.20%APY

24 months – 1.30%APY

30 months – 1.40%APY

36 months/3 years – 1.60%

48 months/4 years – 1.75%APY

60 months/5 years – 2.15%APY

84 months/7 years – 2.25%APY

120 months/10 years – 2.50%APY

The 3 months, 6 months, 9 months and 3 years CD rates are down by 0.10%. The 12, 18, 24 and 30 months as well as the 4 and 5 years CD rates are down by 0.05%. The 7 year term CD rate is also down by 0.20%. The biggest drop is on the 10 year term CD, which dropped 0.50%.

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Discover Bank, which is a bankrate.com Top Tier Quarterly Winner in Q2 2010 for high yields, is offering yet another high yield CDs for September 2011. The offered CD rates below apply to personal accounts only for terms from 3 months to 10 years and are based on a $2,500 minimum balance. However, before we delve into Discover Bank’s CD rates, let’s check the bank’s fee schedule for CD accounts. Herein below are the fees which may be imposed by the bank to your account:

• Both domestic and international wire transfers are FREE

• Outgoing domestic wire is $20

• Outgoing international wire is $40

• If you want to request copy of your statement or check deposit item, the fee is $5

• Returned deposit item is $15

• Withdrawal by official bank check is $5. Note that the fee is per check.

Discover Bank CD rates are competitive and are above the national average. Please see below rate schedule of Discover Bank’s CD rates for September 211. These CD rates are effective as of September 13, 2011.

3 months  - 0.50%APY

6 months  –  0.90%APY

9 months – 1.00%APY

12 months – 1.15%APY

18 months – 1.25%APY

24 months – 1.35%APY

30 months – 1.45%APY

3 years – 1.70%APY

4 years – 1.80%APY

5 years – 2.20%APY

7 years – 2.45%APY

10 years – 3.00%APY

If you are contemplating of preparing for retirement, you may want to check Discover Bank’s IRA CD rates. Or, if you are looking for a long term IRA CD, you can check the best 7 year IRA CD rates for September 2011. Please note that these bank IRA CD rates changes often so check directly with the respective banks before account opening.