Annuity CD Rates Weekly Update - June 6, 2022
Robert Martinelli
Specializing in Tax Planning for Middle-Class Millionaires, aged 58-65 with $1,000,000+ in 401(k)/IRA accounts. Tax planning keeps more money in your pocket. Curious about your options?
A CD Annuity (also known as a Multi-Year Guarantee Annuity) is a hybrid insurance product that mixes the long-term interest rate of a CD (certificate of deposit) and a fixed annuity. It’s a tax-deferred retirement savings vehicle that guarantees a fixed rate of interest for the entirety of the contract term (usually between 1-10 years). The interest rates a CD annuity earns often grow faster than a typical banking CD and are superior to a typical savings account.
This type of annuity is attractive to investors who want the guaranteed interest rate of a long-term CD but don’t want to pay taxes on that interest every year – as with other annuity types, the interest earned is taxed only when withdrawals or income are generated.
And unlike bank CDs, which automatically renew after 30 days, you get to walk away with your money at the end of the term, no questions asked.