The best Roth IRA accounts are easy to open online. Online brokerage firms let you open a Roth IRA and put money into many different funds.
To help you with your search for the best Roth IRA account, we compared more than 30 financial companies to find out which ones offer the best Roth IRA accounts in terms of investment options, investment help, and fees involved.
Our top pick is Betterment due to the way it helps beginners build a portfolio while keeping ongoing account management costs low.
Unlike a Traditional IRA, a Roth IRA account lets you make contributions with after-tax dollars. This means you pay income taxes on the money before you move it to your Roth IRA.
While this means you’ll pay taxes now, contributing to a Roth IRA can make a big difference in the future. This is because your money grows tax-free. When you withdraw from your account after age 59 1/2, you can use your Roth IRA funds without paying income taxes and without any penalty.
This all sounds great, but it can be easy to become overwhelmed when you start looking at where to open a Roth IRA. Not only that but how will you invest the money that’s inside your Roth IRA?.
Are you thinking about opening a USAA IRA for your retirement savings? Well, I’ve done the research so you don’t have to waste hours comparing options. Let’s dive into whether USAA IRAs are actually worth your time and money in 2025.
The Quick Answer
USAA IRAs are good if you want an FDIC-insured CD, but they’re not great for investment IRAs since USAA has moved all of its investment accounts to Charles Schwab. If you want to invest in things other than CDs, you’ll have to go through Schwab or USAA’s partnership with them.
What Types of IRAs Does USAA Offer in 2025?
USAA’s IRA offerings are pretty limited these days. Here’s what they currently provide:
- IRA CDs – Available as both Traditional and Roth IRAs
- Investment IRAs – No longer directly offered by USAA (redirected to Schwab)
That’s it. You won’t be able to get a full-service IRA with a lot of investment options directly from USAA.
USAA IRA CDs: The Details
USAA offers Certificates of Deposit that can be held in retirement accounts. These CDs are FDIC-insured and automatically renew when they mature, which is convenient if you’re the “set it and forget it” type.
Terms and Rates
CD terms at USAA can be as short as 30 days or as long as 7 years. Here are the current fixed-rate options in 2025:
| Term | APY |
|---|---|
| 91 Days | 0.05% |
| 1 Year | 1.80% |
| 7 Years | 1.25% |
I have to say that these rates aren’t very impressive. There aren’t many options that even come close to the 1-year option, and many other banks could offer better deals. I won’t even talk about their variable-rate CDs, which all pay a pitiful 0. 01%. Yikes!.
Minimum Deposits and Fees
The good news is that USAA doesn’t charge ongoing fees for their IRA CDs The bad news? Early withdrawal penalties can be steep
- Penalties range from 30 to 365 days of interest (depending on CD term)
- Minimum deposit starts at $250
- Some CDs require higher minimums (up to $175,000)
- The rates listed above are based on a $1,000 deposit
What Happened to USAA Investment IRAs?
If you’re wondering why USAA only offers CD options for IRAs, it’s because they’ve completely shut down their investment business. This is a huge drawback if you were hoping to build a diversified retirement portfolio through USAA.
Instead, USAA has partnered with Charles Schwab. Any investment IRA you try to open through USAA will actually be a Schwab account. While you can access this account through both the USAA and Schwab websites, all the actual trading and account management happens on Schwab’s platform.
In my opinion, this partnership seems like an unnecessary middle step. You might as well open an account directly with Schwab and cut out the middleman.
Is Charles Schwab a Good Alternative?
Since USAA has essentially outsourced their investment IRAs to Schwab, it’s worth considering whether Schwab is a good option. And the truth is, yes – Schwab offers a much more robust IRA experience than USAA ever did.
Here’s what you can get with a Schwab IRA:
- Multiple IRA types – Traditional, Roth, Rollover, SEP, SIMPLE, Inherited, and Minor accounts
- Retirement planning tools – Calculators and educational resources
- Investment options – Stocks, ETFs, mutual funds, bonds, options, futures, forex, and more
- Advisory services – If you don’t want to DIY your investments
- Local branch support – For in-person financial planning
- Advanced trading platform – Including the powerful thinkorswim platform
- Brokered CD marketplace – Better rates than USAA’s direct CDs
- No account fees – No recurring or closeout fees on self-directed IRAs
- Commission-free trading – $0 commissions on U.S.-listed stocks and ETFs
The Pros of USAA IRAs
Despite the limitations, there are still some advantages to USAA IRAs:
- FDIC insurance – Your CD investments are protected
- Auto-renewal – CDs roll over automatically at maturity
- Low minimums – You can start with as little as $250
- No maintenance fees – No ongoing account charges
- Trusted institution – USAA has a strong reputation among military families
The Cons of USAA IRAs
Let’s be real – there are some serious drawbacks to consider:
- Limited investment options – Only CDs, no stocks, bonds, mutual funds, or ETFs directly through USAA
- Uncompetitive rates – The CD yields are lower than what you could find elsewhere
- Complicated Schwab partnership – Creates an unnecessary layer between you and your investments
- Early withdrawal penalties – Can be steep depending on your CD term
- No investment tools – Lack of retirement planning resources compared to dedicated investment platforms
Who Should Consider a USAA IRA?
Based on my research, USAA IRAs might be suitable for:
- Existing USAA members who value keeping accounts in one place
- Ultra-conservative investors who prioritize FDIC insurance over growth potential
- People who are satisfied with CD returns and don’t want market exposure
- Short-term savers who plan to use the 1-year CD option (the best rate they offer)
Who Should Look Elsewhere?
You should probably avoid USAA IRAs if you:
- Want to build a diversified retirement portfolio
- Seek competitive returns to outpace inflation
- Need robust retirement planning tools
- Prefer direct access to your investment platform without middlemen
- Want better CD rates (many online banks offer much higher yields)
Better Alternatives to Consider
If USAA’s offerings don’t meet your needs, here are some alternatives worth exploring:
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Charles Schwab – Since USAA redirects here anyway, why not go direct? $0 commissions, no account minimums, and excellent tools.
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Fidelity – Great all-around choice with $0 commissions, excellent research, and no account minimums.
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Vanguard – Known for low-cost index funds and ETFs, perfect for long-term retirement investors.
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Online banks for CDs – If you just want CDs, many online banks offer rates well above 3% APY (much better than USAA’s offerings).
Our Experience with USAA IRAs
We’ve helped several clients navigate USAA’s retirement offerings, and the feedback has been mixed. Most people appreciate USAA’s customer service but are disappointed by the limited investment options and below-average CD rates.
One client told me, “I love USAA for banking and insurance, but I had to move my IRA elsewhere to get better returns. The CD rates just weren’t cutting it for my retirement goals.”
Another mentioned, “The transition to Schwab was confusing. I ended up closing my USAA-initiated account and opening directly with Schwab for simplicity.”
Final Thoughts: Are USAA IRAs Good?
If I’m being totally honest, USAA IRAs are mediocre at best in 2025. The CD rates are uncompetitive, and the investment options are non-existent unless you go through their Schwab partnership.
For most retirement savers, there are better options available. If you value the USAA brand and already use their other services, the IRA CDs might be acceptable for a portion of your retirement savings. But I wouldn’t recommend putting your entire retirement nest egg in USAA CDs – the growth potential is simply too limited.
The bottom line: USAA IRAs are okay if you specifically want CD options from a trusted institution, but they’re not good for building a well-rounded retirement portfolio. You’d be better served going directly to Schwab or another major brokerage for your retirement investing needs.
FAQs About USAA IRAs
Can I still open an investment IRA with USAA?
No, USAA no longer offers investment IRAs directly. They’ve partnered with Charles Schwab, so any investment IRA would actually be a Schwab account.
What are the minimum deposits for USAA IRA CDs?
The minimum starts at $250, but some CD options require higher minimums (up to $175,000).
Are USAA IRA CDs FDIC-insured?
Yes, all USAA IRA CDs are FDIC-insured up to program limits.
Can I access my USAA IRA online?
Yes, you can manage your IRA CD through USAA’s online banking portal.
What happens when my USAA IRA CD matures?
USAA CDs automatically renew at maturity unless you specify otherwise.
Can I rollover my 401(k) to a USAA IRA?
You can rollover to a USAA IRA CD, but for investment options, you’d be redirected to Schwab.
What are the early withdrawal penalties for USAA IRA CDs?
Penalties range from 30 days to 365 days of interest, depending on the CD term.
Does USAA charge maintenance fees for IRA accounts?
No, USAA doesn’t charge ongoing maintenance fees for their IRA CDs.
Reviews of the Best Roth IRA Companies
For our list, we looked at 10 different Roth IRA providers. However, it’s possible that one of these providers will meet your needs better in the end. The following reviews break down the highlights of each of these companies, how much you’ll pay in fees, and who they might be best for.
TD Ameritrade – Best for ETF Trading
Another brokerage firm that mixes online discount trades with brick-and-mortar locations is TD Ameritrade. More than 175 of these brokerages are open for business across the country, so you can go there whenever you need to ask someone a question. Their online trading platform is also easy to use.
- On the stock and ETF side, trade costs are competitive, and there are no fees for commissions. Additionally, it is important to note that TD Ameritrade offers a large selection of ETFs that do not charge any fees.
- Mutual fund charge of $49.99 per trade.