[Kallie]

Is anyone familiar with Discover IRA savings? Is it a savings account but sheltered like an IRA? I’m a novice but had never heard of an IRA outside of buying stocks and bonds.

I’m considering opening a Discover IRA savings account and I’m curious about how it compares to a traditional savings account.

Specifically, does it function like a regular savings account in terms of how funds are deposited and earned, but with the added advantage of being tax-sheltered?

I understand that IRAs offer tax benefits, but I’m unsure if the operational aspects of the account are similar to those of a regular savings account.

Can anyone provide clarity on this? Thank you!

[Megan]

Banks and credit unions definitely have IRAs and they are not a good idea.

The wealth building comes from investing in the market.

Keep you savings for high yield accounts.

[Frank]

You can put virtually anything in a IRA you want through ETFs and money markets, but you should use a proper brokerage for the account like a Fidelity so you have access to everything in one place.

Specifically, do not use any banks or saving institutions for IRA money, which is supposed to be a long-term investment.

That is a bad choice, because its not really investing, but just hoarding cash.

[Jessica]

I don’t see any advantage to it over using Fidelity and investing in a money market if you want stability.

It’s still locked up, but it seems to have fewer investment options.

[Amy]

Banks that offer IRAs have higher fees and fewer investment choices than brokerage firms.

In the case of the Discover IRA, their only option for the IRA is to buy a CD.

A CD earns interest like a savings account but that money still is subject to the rules for withdrawing from an IRA so it’s not like a savings account in terms of accessibility.

[Christopher]

Like the other have said, banks offering IRA savings products are not a useful investment.

The options are mainly savings and cd accounts, low risk but also low yield.

Not great for long term investing.

In brokerage-based IRAs, you can also invest in cash, money market funds, treasuries, and CDs if you’re looking for low-risk, negative-return vehicles like that.

[Jason]

IRAs at bakks or credit unions are not a good idea. You want your IRA at a brokerage like Fidelity, Schwab, or Vanguard.

[Mark]

Do not use a savings bank ira. I almost opened one with navy fed. I’m so glad i didn’t.

Stick with tried and true brokerages like Fidelity, vanguard, schwab, e trade, or m1

[Author]

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