I know that many on FW are still deciding whether a Traditional or Roth IRA is right for them, but this thread is for those individuals who have selected a Traditional IRA.

For people under 50, the individual cap for 2007's contribution is 4,000.
For people over 50, the amount is $1,000 higher.

This means that a young married couple can place 8,000 into a traditional IRA for a term between usually 8 months and 2 years.

Unfortunately, in extensive searching (on FW and elsewhere), I haven't yet located a comprehensive list of IRA rates of return, similar to what we have with our "Daughter of the Mother" threads and the like.

While the contribution amount is capped at $10,000 for an older married couple, there's more than $150 in difference if opting for a 2 year account in the two rates listed below.

Examples I have found:
3.25%: REGIONAL UMB (midwestern bank B&M): 3.25% for 9 months - 24 months link
2.6%: NATIONAL Bank of America: 2.60for 8 months

I figured since it's getting close to tax time and this is one of the procrastinator's best tricks for reducing their tax burden, it was worth posting. As an additional note, getting a 9 month IRA on or after April 1st means that you won't pay taxes on the interest until the 2009 tax year.

Recommendation: Due to recent Fed cuts, making a longer-than-the-minimum-to-mature IRA contribution seems somewhat ill-advised at this time.

Please post the best locally or nationally available rates, but please make sure that local rates are clearly marked.

Do you mean IRA CD?

You don’t have to put your IRA to CD accounts. Inflation will eat you IRA before you will able to withdrew

I'm sure this is very local.

http://www.cuwest.org/rates_share.asp

500-9999.99 for 12 months 4.45 APY
10000-49999.99 for 12 months 5.20 APY
50000+ for 12 months 5.25 APY

Glitch99 said:IRAs do not have a rate of return, the investments you choose within your IRA do. And with the right custodian you can invest your IRA in nearly any option you'd have in a normal taxable account.

As I understand it, that is accurate of the "generic" term IRA, but not so for IRA CDs, which have a rate of return that varies by institution (as most CDs do). The advantage of using your IRA funds in a CD is that it is "fire and forget" for 9+ months with a constant rate of return and FDIC protection.

Theoretically an MMA could provide similar advantages, but the interest rate is not (in my experience) often guaranteed, and with current rate cuts, the stickied "liquid funds" thread suggests that MMA returns are fairly low right now.