How Do You Open a Roth IRA at a Credit Union?


Quick Answer

Open a Roth IRA at a credit union by filling out the application for the account online or on paper, states Zacks Investment Research. Provide a name, Social Security number and other personal information, sign and date the form, and submit along with an opening deposit.

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Roth IRAs at credit unions have lower starting and service fees than traditional banks or other financial institutions, reports Zacks Investment Research. Some may not charge a fee at all. The National Credit Union Association insures the accounts. The initial deposit may be as low as $25 , and customers may transfer funds from another account at regular intervals. Roth IRAs in credit unions typically grow more slowly than other Roth IRAs because credit unions only offer fixed interest rate accounts or certificates of deposit as investment vehicles, which do not have the same rate of return as stocks, bonds or mutual funds.

A credit union Roth IRA may appeal to those for whom savings security is more important than aggressive growth, such as people nearing retirement age, explains Zacks Investment Research. People in their 20s and 30s may choose to allocate a small portion of their investment portfolio in the credit union Roth IRA. They can increase their contributions to it over time while slowly decreasing their investments in more volatile instruments, such as stocks.

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