Roth IRAs alone do not gain interest, explains RothIRA.com and Cash Money Life. A Roth IRA is an investment account, and owners of Roth IRAs select where the money inside of an IRA is invested, such as in a certificate of deposit or a money market, two investment vehicles that provide interest rates. While Roth IRAs are accounts designed to hold investments, owners of Roth IRAs compare rates for interest-earning accounts with a financial adviser to find the best return.
Individuals can open Roth IRA accounts with a trustee at a bank or a federally insured credit union, among others, notes Cash Money Life. However, these institutions discuss investment options with the owner of the Roth IRA to determine his investment needs and to determine where to invest his funds to gain the best rates. Individuals can take a more active approach in their investments with brokerages such as TradeKing, E-Trade and TD Ameritrade. Those looking for guaranteed interest rates are best off going with a certificate of deposit or government bonds, while those who can afford more risk may gain a better reward with equities.
A few tips for getting a higher yield from a Roth IRA include trying out local institutions instead of national brokerage firms and understanding that rates are often negotiable, explains Bankrate.