If you are tired of your low CD rates then perhaps it is time to start looking for an alternative investment that pays more. Annuities could be the answer!
A traditional fixed annuity holds true to the CD form and is an easy switch for the right person. A fixed interest annuity pays a set rate and has a maturity date just like a CD. Although it is like a CD, an annuity does have its differences.
First, an annuity has surrender charges as opposed to the CD's penalties. Surrender charges are much more substantial that CD penalties due to the fact that the charge is based on your total value and not just your interest earned.
Second, annuities are tax deferred and CD's are not. Annuities fall into the "taxed later" category. When you withdraw money you have to pay taxes. CD's are "taxed now" investments. If the money in question is for long term savings and not income then it is no brainer to make the change to an annuity.
Finally, annuities pay higher rates and offer many more amazing options. Compared to CD's which offer nothing, annuities offer amazing benefits. Income guarantees top the list of riders you can add to annuities that make them much more attractive. Long term care riders come in a close second.
Do you want to learn more about transferring you CD into an annuity? Read - Should You Transfer Your CD To An Annuity?
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