FDIC-insured IRAs

Save with security and flexibility.

In addition to the standard features and tax advantages, Principal Bank® traditional and Roth IRAs come with the added security of FDIC insurance up to $250,000 per depositor.

Traditional IRA earnings grow tax-deferred until withdrawal, and certain contributions may be tax-deductible. You'll be taxed on the pre-tax savings when you withdraw it in retirement. To contribute to a traditional IRA, you or your spouse must earn income in the year the contribution is made. The annual contribution limit is $6,500 ($7,500 if you’re age 50 or more).2

Roth IRAs offer tax-free withdrawals after a five-year holding period, with the same contribution limits as a traditional IRA. Your modified adjusted gross income (MAGI) can’t exceed certain limits in the year the contribution is made.

Choose how you invest.

Principal Bank offers two investing options for your IRA savings:

Qualified certificates of deposit (CDs) give you stable, long-term savings.3

  • Minimum deposit of $1,000
  • Terms available from 12-60 months

Money market IRAs give you higher yields on higher balances.

  • Minimum deposit of $1,000
  • Additional contributions allowed
  • Tiered interest rates compounded and credited quarterly
  • Checks available for customers over age 59½ (traditional IRAs only)
  • Six withdrawals allowed per month

Interest rates

See current Principal Bank IRA interest rates.

Get started.

Opening a Principal IRA is easy. Select the option that works best for you:

  • Want to handle things online? Open your IRA in just a few steps and choose from a set of investment options.
  • Looking for more investment options, or some extra help? Call us at 800-247-8000, ext. 2251, to speak with a financial professional.

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Member FDIC.

1 Principal Bank® FDIC-insured IRAs:

  • Annual fee: $15 charged on the anniversary date of account opening after start of first year. Fee waived for balances $10,000 and above.
  • Closing fee: $30. Waived if funds transfer to a Principal Bank or Principal Financial Group® (Principal®) product.
  • Funds held in a Principal Bank® IRA are FDIC-insured up to $250,000 per depositor.

2 As indexed by the IRS, 10/21/2022 - IRS.gov

3 A substantial penalty may be imposed for early withdrawal.

Bank products and services are provided through Principal Bank®, Member FDIC. Insurance products and plan administrative services provided through Principal Life Insurance Company®. Securities offered through Principal Securities, Inc., 800-547-7754, Member SIPC and/or independent broker-dealers. Annuities, insurance, retirement plans, mutual funds and other securities are not insured by the FDIC, are not obligations or deposits for Principal Bank® nor guaranteed by Principal Bank, and involve risk, including possible loss of the principal invested.