CD'S vs Fixed Deferred Annuities
For those individuals who are concerned that their CD's do not pay sufficient income and who are concerned with what income they make is taxed away by the U.S. government in their increasing need to create revenue, a deferred annuity is a great vehicle. Listed below are several differences between CD's and tax deferred annuities.
Will this product offer safety of principal?
Access to principal? (subject to surrender charges)
Does the entire principal get invested unreduced by commission?
Is the interest earned each year taxable?
Will the product provide tax deferred growth?
Does the product provide for flexible contributions?
Will this product avoid the costs and delays associated with probate?
Can earnings from the product be reinvested without being currently taxed?
Can the product provide guaranteed lifetime income without the principal being taxed?
Can the product provide social security advantages by reducing the taxable income that would make social security taxable?
Can the product provide potentially higher yields?
Does the product provide for loans?
CD's Annuity
Yes Yes
Yes Yes
Yes Yes
Yes No*
No Yes
No Yes
No Yes
No Yes
No Yes
No Yes
No Yes
No Yes
Yes Yes
Yes Yes
Yes Yes
Yes No*
No Yes
No Yes
No Yes
No Yes
No Yes
No Yes
No Yes
No Yes
Current CD Rates:
Bank of America 1 year CD .45%
9 month CD .30%
18 month CD .55%
Wells Fargo Bank 1 year CD 1.2%
11 month CD .15%
26 month CD .40%
35 month CD .65%
58 month CD 1.15%
Chase Bank 6 month CD .20%
12 month CD .25%
18 month CD .35%
24 month CD .40%
36 month CD .50%
Bank of America 1 year CD .45%
9 month CD .30%
18 month CD .55%
Wells Fargo Bank 1 year CD 1.2%
11 month CD .15%
26 month CD .40%
35 month CD .65%
58 month CD 1.15%
Chase Bank 6 month CD .20%
12 month CD .25%
18 month CD .35%
24 month CD .40%
36 month CD .50%
Current Fixed Annuity Rates:
Reliastar Life (ING) 3.00% 10 year term
Minnesota Life 2.60% 9 year term
American National 2.65% 8 year term
American Equity 3.00% 7 year term
The Standard 2.50% 6 year term
American Equity 2.90% 5 year term
Principal Financial 1.50% 4 year term
Fidelity & Guarantee 1.30% 3 year term
Reliastar Life (ING) 3.00% 10 year term
Minnesota Life 2.60% 9 year term
American National 2.65% 8 year term
American Equity 3.00% 7 year term
The Standard 2.50% 6 year term
American Equity 2.90% 5 year term
Principal Financial 1.50% 4 year term
Fidelity & Guarantee 1.30% 3 year term