CD Type Fixed Annuity Rates
In this post Crowe and Associates gives clients some information about CD Type Fixed Annuity Rates. The more options you are aware of for your investment dollars the better decisions you can make. A fixed annuity works in a very similar manner to a bank CD. The insurance company offers a fixed rate. That rate does not change for a specific set number of years. At the end of the term, the money is free of any type of surrender penalty. You can then either leave it in the account, cash it out or move it into a different investment. For example: A five year fixed annuity at 2.85% will have a guaranteed payment of 2.85% per year. You can move that money anywhere you want at the end of the 5th year with no penalty.
A fixed annuity does have surrender penalties.
The penalties apply only if you take out more than 10% of the money in any given year prior to the end of the term. Unlike a bank CD, fixed annuities are not FDIC insured. Although, they are backed by the state of issue up to a specified amount. The amount in Connecticut is currently up to $500,000.
Like a CD, companies compete with each other to offer the highest annuity rates for any given term. In fact, Guggenheim currently offers terms of 3 to 10 years. They have the best rates available for each individual term. We include a current rate sheet in this post, below for your review.
Crowe and Associates would like to help you with your both your insurance and investment needs. Please call us if you have any questions or need any insurance or investment advice. You can reach us either by phone at 203-796-5403 or email at Edward@croweandassociates.com.