Today's Best CD Rates
Best 3 month CD Rates
Best 6 month CD Rates
Best 2 Year CD Rates
Best 3 Year CD Rates
Best 5 Year CD Rates
Today's Best Fixed Annuity Rates by Term
|2 yrs||SILAC||Secure Savings Elite 2||2.15%||B+||None||Apply|
|3 yrs||Oceanview||Harbourview 3||2.50%||A-||0%/ 10%||Apply|
|4 yrs||Nassau||Simple Annuity||2.70%||B++||5%||Apply|
|5 yrs||Atlantic Coast Life||Safe Harbor||3.15%||B++||None||Apply|
|6 yrs||Atlantic Coast Life||Safe Haven||3.17%||B++||None||Apply|
|7 yrs||Sentinel Security||Personal Choice||3.20%||B++||None||Apply|
|8 yrs||Atlantic Coast Life||Safe Harbor||3.20%||B++||Int. / 10%||Apply|
|9 yrs||Liberty Bankers||Bankers Elite 9||3.00%||B++||None||Apply|
|10 yrs||Atlantic Coast Life||Safe Haven||3.25%||B++||None||Apply|
|FIXED ANNUITY||CD (CERTIFICATE OF DEPOSIT)|
|Issued By||Insurance Companies||Banks|
|Investment Amount||$2,000 - $1,000,000||Essentially Any Amount|
|Investment Term||2 years - 10 years||3 months - 5 years|
|Interest Rates (APY)||Rates vary by product but usually higher than CDs.||Varies by financial institution, term and investment amount.|
|Liquidity||Usually, 10% annually or interest earned.||Almost always accumulated interest.|
|Guarantees||Backed by claims-paying ability of issuing Insurer & State Guaranty Associations.||Backed by the FDIC up to $250,000 per depositor, per institution.|
|Death Benefit||Passed directly to the beneficiary without probate process.||Probate process required.|
We do our best to insure our rates are accurate but rates change frequently and we can not guarantee our published rates. We have sourced our CD rates from Bankrate.com and our fixed annuity rates are sourced directly from each insurer. Before travelling to your local bank or credit union we suggest you visit their website or call them prior.
CD vs Fixed Annuity
The below table compares and contrasts some of the key similarities and differences between a CD and a multi-year guarantee annuity. The main difference is an annuity’s interest grows tax-deferred while the interest you earn in a CD is taxable in the year it is earned, regardless of whether or not you spend it.
CDs are Considered to be More Safe Than Annuities
Bank CDs are considered an extremely safe investment because the FDIC insures them up to $250,000.
Although annuities are not insured by the federal government, they’re also considered safe because they’re insured by the issuing insurance company and, in most cases, also by state guaranty associations. It is important to make sure your annuity is issued by a highly rated insurance company.
Annuities Almost Always Pay Higher Interest Rates than CDs
As seen in the tables above, annuity rates are typically higher than CD interest rates.
Annuities Grow Tax-Deferred
Annuities grow tax-deferred while CDs do not. Tax-deferred growth means the interest compounds, so you earn interest on the funds that would have been used to pay taxes.
The IRS requires that the earnings on CDs not held in tax-preferred retirement accounts are taxed annually. This means you pay taxes on interest earned in a CD whether you spend it or not.
Both CDs and Annuities Offer Some Liquidity
Annuities are not as flexible as CDs, and they have higher penalties for early withdrawals greater than the contracts free withdrawal amount. Annuity annual free withdrawal amounts vary by company but are usually either 10% of the annuity account value or interest earned.
If you close a CD earlier than scheduled, the penalty you pay is lower than the penalty you would pay if you were to withdraw funds early from an annuity.
And whereas penalties for early withdrawals from a CD typically increase each time the CD is renewed, penalties for early withdrawals from an annuity are fixed.
In addition to the penalties imposed under the annuity contract, annuity owners under the age of 59½ must pay the IRS a penalty of 10 percent for early withdrawal from an annuity.
Most frequently asked questions and answers.
While not FDIC insured, State Guaranty Associations provide a safety net for their state’s annuity policyholders. These Guaranty Associations guarantee policyholders continue to receive coverage (up to the limits spelled out by state law) even if their insurer is declared insolvent. Source: “Learn to Invest, Investment Types, Annuities, Fixed Annuities.” Financial Industry Regulatory Authority (FINRA). Visit FINRA’s Fixed Annuities Webpage