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I apologize in advance if I am misunderstanding the situation (it's happened before).

I've never understood what the difference in a cd invested in an ira and ira cd is. My father in law is wanting to roll over his existing mutual fund ira into a cd but the bank is telling him it has to be an ira cd to be in his ira. This ira cd isn't paying as high (difference is about .75%) as the regular cd and I want to know why anyone would invest their ira in an ira cd instead of a regular cd that pays a higher interest rate.

As I understand it, you can't "roll over" a mutual fund *IRA* into a *regular* CD; that will count as an IRA distribution. I agree w/ the others that there is no reason that I know of for a bank to charge differently b/t reg. and IRA CDs, and that not all banks do that, though many do.

Hope that helps :-)
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