Securing an IRA (individual retirement account) is one good way of planning for your retirement years. And because there are currently lots of banks that offer IRA accounts, it should not be hard to look for a bank to transact with. In fact, many of them offer promising interest rates. What’s quite hard, though, is to choose which among the banks to work with, especially because you have to consider many factors, one of which is the interest rate. To ensure that you have a good amount of money upon retirement, what you want is to choose the bank that has the best interest rates. And to help you choose the right bank, you have to do a careful comparison of IRA rates. Here are some tips.
- Make a bank listing. After deciding on opening an account, list all the banks you wish to work with. Get their contact numbers, address, and website. Then contact the banks through phone and inquire about their IRA interest rates. If you want, you can also personally go to the bank and ask a bank representative about their rates. While you are there, you may also want to get more information on the terms. Another option is to check the bank websites. Some major banks will ask for your zip code so that they can give you the exact IRA rates in your location. After getting the IRA rates from banks, record them in a tabular form to make an easy comparison.
- Check the Internet. There are also certain websites that list the IRA rates of different banks. You only need to provide your state so that these websites can list the banks in your locality together with their respective IRA rates. But because interest rates may change from time to time, you may have to phone the bank to verify the information.
- Consider checking IRA rates of online banks. What’s good about Internet banks is that they have less operating expenses and can therefore offer relatively high IRA interest rates. So try to look for these kinds of bank. The danger, however, is that there are plenty of fly by night banks proliferating in the Internet. If you would like to transact with an online bank, make sure to do a thorough research on its credibility. To find out if a bank is bogus, type in your search engine the name of the bank and the word sham. See the results.
- Check other institutions. Other than banks, you can also try to check other financial institutions. Credit unions, for instance, also offer high IRA interest rates since they are nonprofit. You can look for websites that list their interest rates. The websites will ask for your zip code, so they can narrow down your search to your locality. Once provided, list the IRA interest rates for easy comparison.
After getting the interest rates, see which among the banks and financial institutions you think has the most promising interest rates. Then decide where you want to open an account.