If you use bank CD’s or are looking for a safe alternative to the volatile stock market or mutual funds, you may know that CD rates have tanked of late, averaging a fixed rate of about ½% for a 2 or 3 year CD term.
As an alternative, have you considered a CD-like Annuity?… note some of the benefits, as follows:
But, just do the math. Let’s say you do the CD-type fixed annuity at 3% for a $100,000 investment. You earn more than $3,000 in annual interest, vs. a bank CD at .5%, where you would earn only $500. That’s an additional annual return of $2500 in this scenario.
Check out Fixed Annuities to see if they would be a good fit for your “safe” money. For more information on Fixed annuities & comparing CD’s to fixed annuities, click here or contact us as we represent many insurers/products and can provide quotes on the more competitive rates, terms and annuity products to fit your needs.