See Our Top Fixed Annuity Rates!

CD Type Fixed Annuities

CD Type Fixed Annuities are much like Certificate of Deposits (CD's) issued by banks or credit unions; they offer a fixed rate of interest for a specified period of time.  For example a CD type fixed annuity may have these terms;  A 4.5% interest rate for 5 years; in this example you would earn 4.5% each year for 5 years.  Unlike A CD at the Bank a CD type fixed annuity can offer many additional features such as; tax-deferral, access and premium guranatees.  

Tax-deferral:  Money inside of a CD type fixed annuity is treated as a retirement account and therefore no taxes on owed on interest unless is actually withdrawn.  If you don't spend the interest in a particular year you don't have have to pay the taxes that year.

Access:  In addition to allowing you to withdrawl interest from your annuity many companies allow you to withdrawal up to 20% of your account value each year.  This can be a great deal as it adds flexibility to your investment.  Also should you happen to pass away, be diagnosed with a terminal illness or place in a nursing home there is a waiver of surrender charges providing you or the beneficiaries 100% access to the money right away. 

Premium Guarantee:  Some companies even offer a premium guarantee.  If you sign up for a 5 year contract and you need to cancel the contract after year 1 there are generally penalties associated with that.  If you policy has a premium guarantee you would receive back no less than what you put in.  You could possibly lose all or some of the interest you had earned but you will get back no less than what you originally deposited. 

For more information please contact us.

Fixed Annuity Calculator