A Money Market IRA from People Driven Credit Union gives you a retirement savings option that combines competitive earnings with the flexibility to access your money when you need it.
You can open this account as either a Traditional or Roth IRA, so you get to choose the tax structure that fits your situation. With a Traditional IRA, your contributions may be tax-deductible now, and you pay taxes when you withdraw in retirement. With a Roth IRA, you contribute after-tax dollars and qualified withdrawals in retirement are tax-free. Either way, your money grows in an account designed to work with your retirement timeline, not against it.
Unlike a Certificate of Deposit, a Money Market IRA does not lock your funds into a fixed term. That makes it a practical choice if you need regular access to your balance, whether for planned withdrawals, unexpected expenses, or required minimum distributions (RMDs) once you reach the age the IRS requires them.
The account requires a minimum balance of $1,000 to open. From there, the rate structure rewards you for saving more. The higher your balance, the higher your rate, with the best available rate kicking in at $25,000 or more. That tiered structure means your account keeps working harder as your retirement savings grow.
A Money Market IRA works well for members who want a retirement account that earns more than a basic savings account, stays liquid enough for distributions, and avoids the commitment of a fixed-term CD. It is not the right fit for every situation, which is why we recommend talking through your options with a PDCU team member before you open one.
Ready to open an account? Schedule an in-person appointment at any of our branch locations to get started. Secure your retirement savings with a blend of flexibility, growth, and security tailored to fit your needs.
Your retirement savings should be working as hard as you did to build them. A Money Market IRA from PDCU is one straightforward way to make that happen.
Money Market IRA
Tiered rates for Traditional and Roth IRA savings
A Money Market IRA combines IRA savings with a tiered money market rate structure. The higher your balance, the more you may earn.
- $1,000 minimum deposit to open
- Traditional IRA and Roth IRA options available
- Tiered APY² based on your account balance
- Variable rate that may change over time
- More flexibility than a fixed-term IRA Certificate
- Federally insured by NCUA
How a Money Market IRA works
A Money Market IRA works like a money market deposit account held inside an IRA structure. You can use it to save for retirement, earn tiered dividends, and keep funds in a federally insured deposit account.
The rate is variable, which means it may change after the account is opened. Withdrawals may be subject to taxes or penalties depending on the IRA type, your age, and how the funds are used.
Best for
A Money Market IRA is a good fit when you want IRA savings with tiered earning potential and more flexibility than a fixed-term certificate.
- Traditional IRA or Roth IRA savings
- Members with at least $1,000 to open
- IRA balances that may grow over time
- Members who want tiered dividend rates
- Retirement savings that may need more flexibility than a CD
- Members taking or preparing for IRA distributions
- Keeping retirement savings separate from everyday savings
Account details
Here is a quick look at how the Money Market IRA works.
| Feature | Money Market IRA |
|---|---|
| Minimum opening deposit | $1,000 |
| IRA options | Traditional IRA and Roth IRA |
| Rate type | Variable, tiered APY² based on balance |
| Current rate tiers | $1,000 to $4,999: 0.35% APY² $5,000 to $24,999: 0.50% APY² $25,000 and above: 1.10% APY² |
| New money requirement | New money may be required to qualify for promotional rates. Review current rate disclosures before opening. |
| Best use | IRA savings with tiered earning potential and account flexibility |
| Withdrawals | Withdrawals may be subject to taxes or penalties depending on the IRA type and timing |
| How to open | Schedule an in-person appointment with People Driven Credit Union |
| Membership | Membership and eligibility requirements apply |
What to know before opening a Money Market IRA
IRA accounts have specific tax rules, contribution limits, and withdrawal requirements. The rules may vary depending on whether you choose a Traditional IRA or Roth IRA.
- Annual contribution limits may apply
- Eligibility rules may vary by IRA type
- Withdrawals may be taxable or subject to penalties
- Required minimum distribution rules may apply to certain IRA types
- Rates are variable and may change at any time
- New money requirements may apply to promotional rates
For details about IRA rules, ask People Driven Credit Union for an IRA brochure or visit the Internal Revenue Service website.
How to open a Money Market IRA
To open a Money Market IRA, schedule an in-person appointment with People Driven Credit Union. A PDCU team member can help you review your IRA options and open the account that fits your goals.
- Choose your IRA type: Traditional or Roth
- Review the current APY² tiers and account terms
- Bring valid identification and required account information
- Open with a minimum deposit of $1,000
- Set up contributions that fit your retirement savings plan
Choose the IRA type that fits your goal
A Money Market IRA can be opened as either a Traditional IRA or Roth IRA. The right choice depends on your retirement plan, tax situation, and eligibility.
| IRA Type | Best For | How It Works |
|---|---|---|
| Traditional IRA | Retirement savers who may want tax-deferred growth | Contributions may be tax-deductible depending on your situation, and earnings grow tax-deferred until withdrawal. |
| Roth IRA | Retirement savers who may want tax-free qualified withdrawals later | Contributions are made with after-tax dollars, and qualified withdrawals may be tax-free. |
IRA tax rules can vary based on your income, age, contribution type, and withdrawal timing. Consider speaking with a qualified tax professional before opening or withdrawing funds from an IRA.
Compare IRA savings options
PDCU offers multiple IRA savings options. The best choice depends on whether you want flexible savings, tiered earning potential, or a fixed rate for a set term.
| IRA Option | Best For | Minimum Opening Deposit | Rate Type | Learn More |
|---|---|---|---|---|
| Money Market IRA | Members who want tiered IRA earning potential and more flexibility than a certificate | $1,000 | Variable, tiered APY² | You’re viewing this option |
| IRA Variable Rate Savings Account | Members who want flexible IRA savings with a lower opening deposit | $100 | Variable APY² | View IRA Variable Rate Savings |
| IRA Certificates | Members who want a fixed rate for a set term inside an IRA | $500 | Fixed APY² for the certificate term | View IRA Certificates |
Membership and account protection
Money Market IRAs are available to qualifying People Driven Credit Union members. Membership is open to those who live, work, worship, or attend school in Michigan, plus relatives of current members.
A $5 Membership Share Savings deposit establishes membership. Membership and eligibility requirements apply. Approval is subject to application.
Your savings are federally insured by the National Credit Union Administration, backed by the full faith and credit of the United States Government.
Rates
-
³New money required to qualify for this rate. Only new funds transferred from external sources to the credit union qualify for this promotion.
Minimum Deposit
Dividend/Interest Rate
APY²
$1,000 to $4,999³ 0.349% 0.35% $5,000 to $24,999³ 0.499% 0.50% $25,000 and above³ 1.094% 1.10% Rates Effective as of:
Frequently asked questions
- Includes Compounding: APY accounts for how often interest is compounded (e.g., daily, monthly, quarterly), which can significantly affect the total interest earned over time.
- Comparison Tool: APY provides a standard way to compare the annual interest earnings of different savings products, regardless of how frequently interest is compounded.
- Formula: The formula for calculating APY is:
APY = (1 + r/n)^n - 1
where r is the nominal interest rate (expressed as a decimal), and n is the number of compounding periods per year. - Higher APY: A higher APY indicates that you will earn more interest on your money over a year, assuming the same principal amount.
Yes. Money in a People Driven Credit Union Money Market Savings Account is federally insured by the National Credit Union Administration, or NCUA, to at least $250,000 per member, per ownership category.
How NCUA insurance helps protect you
NCUA insurance protects eligible deposits at federally insured credit unions. Coverage limits apply by ownership category, so your total protection may vary depending on how your accounts are structured.
What to keep in mind
A Money Market Savings Account can offer both savings growth and deposit protection, but it is still a good idea to review your account ownership and total balances if you want to understand your full insurance coverage.
If you have questions about your Money Market Savings Account or your coverage, call 844-700-7328 during business hours.
A Money Market Savings Account is a type of savings account that can offer higher dividend rates than a regular savings account while still giving you access to your funds. It may be a good fit if you want to earn more on your savings without locking your money into a certificate.
How it works at People Driven Credit Union
At People Driven Credit Union, the Money Market Savings Account requires a $1,000 minimum deposit to open. Interest is calculated daily based on your balance and is paid and compounded monthly. The account also offers tiered rates, which means higher balances may earn higher dividends.
How it compares to other savings options
A Money Market Savings Account can offer more flexibility than a certificate because your funds remain available, and it may offer higher earnings than a standard savings account. At People Driven Credit Union, you can also write checks from the account.
What to keep in mind
Funds in a Money Market Savings Account at People Driven Credit Union are federally insured by the NCUA to at least $250,000.
If you have questions about whether a Money Market Savings Account is the right fit for your goals, call 844-700-7328 during business hours.
Disclosures
For more details about IRAs, please ask the credit union for a brochure, or visit the Internal Revenue Service.
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