If you do decide to put a bank account inside your IRA, that IRA would be used as a holding account for your savings, which would typically be put in a savings account, money market account, or a CD. A CD, which stands for Certificate of Deposit, is different from a money market account because a CD has a fixed maturity date.
This means that if you put your money in a 60-month IRA CD, you will be penalized if you withdraw your money before that maturity date. The benefit is that you can typically earn higher interest rates the longer you agree to leave your money in a CD. The IRA savings account rates in the chart above are not CD rates; they are rates for savings accounts.
A money market account rate is an option if a consumer doesn’t want to lock their money in a CD for a set period of time. It’s a better option for people who want to access their money when they need it, but as evidenced in the chart above, their rates are not as good as CD rates because of that ability to access the money. It’s also good for people who don’t have a lump sum to give and rather want to save a little bit at a time. Many of the IRA savings accounts shown in the chart above do not have minimums to open them.