These fixed interest products are most commonly utilized in offering a fixed rate for a set term. While a fixed annuity often can provide a higher return than a CD, both allow you to get the interest rate stated for the term and provide you with the luxury to do what you want with the money after the term’s expiration date. It is important to note that you may be earning 1 percent a year for a 5 year term with a CD, while you may be earning 3 percent for a five year term with a fixed annuity.

These unique fixed interest products typically have a higher rate with terms that are typically 1 to 2 years. The current fixed rate is 6 percent for a 1 year commitment and 7 percent for a 2 year commitment. Clients receive the interest paid to them over the course of 12 or 24 months and are able to walk away with the principal and interest gained after that.

When you opt for a market linked certificate of deposit or indexed annuity, you can never lose your principal investment, regardless of market performance. However, the interest you receive on an annual basis fluctuates with these products, so although it is classified as “fixed,” since you cannot lose your money, it does have a variable return.

Fixed CDs provide you with peace of mind in your investment strategies, as these tools provide you with a set interest rate throughout the period of your investment. You can take advantage of a steady strategy in growing your savings as you will be receiving predictable and measurable income as a result. There are a few different types of Fixed CDs, including liquid CDs, callable CDs, traditional CDs, and brokered CDs.