What is a variable rate IRA?


Quick Answer

According to Zacks.com, a variable-rate IRA has an interest rate that changes throughout the life of the IRA, unlike traditional IRAs in which the interest rate is fixed. These rates can change monthly or as frequently as daily and are usually determined by U.S. Treasury security rates.

Continue Reading
What is a variable rate IRA?
Credit: Paul Bradbury OJO Images Getty Images

Full Answer

Variable-rate IRAs are typically 18 months, according to Zacks.com. When the IRA matures, the holder can move the IRA to a different bank, renew the IRA or withdraw money. Usually, variable-rate IRAs have minimum deposits of between $5 and $100, while a fixed-rate IRA may require a minimum deposit of $500 or more. Additional deposits may be made to variable-rate IRAs until they mature without penalty.

Learn more about Financial Planning

Related Questions