Multiple Accounts

• You can hold as many different IRA accounts as you wish, but you might want to limit your holdings to just a few. It can be very difficult to keep track of multiple accounts, and holding many small accounts is often costlier than consolidating those funds into one larger account. Many IRA administrators charge management fees, but those fees are often waived for larger accounts. If you do hold multiple accounts, it is a good idea to look at your holdings and see where they can be consolidated. If you like the CD offerings at two different firms, you could split your IRA money between those two firms and buy the CDs you want.
  
  

Roth vs. Traditional

• You can hold both a Roth IRA and a traditional IRA, and you can split your CD investments between the two accounts if you wish. The fact that you can withdraw Roth IRA money tax-free in retirement makes it a good vehicle for high growth investments like stocks, but CDs can play a role as well. You can start by evaluating the current holdings in your Roth IRA and using any cash in the account to purchase a high yielding CD. You can then look to your traditional IRA for ways to reallocate some of your other investments into safe and insured CDs.
  
  

CD Ladder

• CD rates change all the time, and locking in a rate today could mean losing out on a higher rate tomorrow. One way to avoid that problem is to build a CD ladder. With a CD ladder you always have a CD coming due, and you can move that money into higher yielding assets as each matures. You could use one IRA account to purchase six-, 12-, 18- and 24-month CDs, and use the other account to buy one-, two-, three- and four-year CDs.
  
  

Tracking Maturity Dates

• If you do plan to maintain more than one IRA account and use many different certificates of deposit, it is very important to track the maturity date of each investment you own. If you fail to provide instructions for rolling over or reinvesting the proceeds of the CD, your money could end up sitting in a savings account and earning almost no interest. Use reminders on your online calendar, or simply make a notation on your wall calendar of each maturity date. As that date approaches, contact the bank or broker to discuss your reinvestment options.