Does it matter which financial institution to start a roth IRA?

Question

I want to start investing in a roth IRA at Washington Mutual, but I'm not sure if there's a better bank or institution that will give me better returns on my investment.

Answer 1

I don't believe I would choose WAMU.  It may not be around too much longer.  Sort of having some financial problems. Big ones.  If you have sufficient initial investment,  Fidelity would be a good place to open an account.  They offer CDs, mutual funds, and many other options.  

http://personal.fidelity.com/accounts/se...

Answer 2

WaMu is going out of business (probably).  You are insured up to 100K but this would be a major hassle if you went there and they then failed.  I'd try a local bank instead, but wherever you go make sure they are FDIC insured.

Answer 3

The returns you get in a Roth depend on what investments you hold WITHIN that Roth.  A Roth isn't an investment in and of itself.  If you're investing in CDs, for example, check around for the best CD rates.  Also, compare fees the different institutions may charge you for maintaining your Roth.