What are CD Type Annuities and Their Benefits?

There are a number of different financial instruments available to grow your money, and among the safest is the CD Type Annuity. It is a safe investment with the best fixed-rate annuities available.

CD Type Annuities

This is an investment that grows over time and can be purchased through most banks. The principle can typically be compounded either monthly or periodically. While the gains might not be as high as they are in the stock market, it is a safe investment with the best fixed-rate annuities available. Your reputation and time with the bank will greatly influence the interest rate available to you. The interest rate is incredibly important, so if you can, negotiate a better one than the one offered.

Most people never think to attempt to negotiate with their bank, but banks are like any other place of business and negotiation is expected. Having an idea of what you would like to achieve before going into the bank is important, and will determine how much you receive from your CD Type Annuity. This is one of the most popular investments for people to make. This is due to the fact that it is secured by the FDIC through the bank and the best CD Annuity Rates can be found at most banks.

Getting a Good Return on Investment

Take the time to shop around to determine who has the best CD Annuity Rates out there, most banks have an annuity rate between 2-3%, but if you are investing a very large sum of money the rate might increase. This is all depending on whether or not you have those funds to put forth, but in the interests of time it is a good idea to invest what you can.

Just remember that once a CD-type annuity is “locked in” you cannot add funds or take them away, and if you end the CD-type annuity early you could find yourself paying penalties. Even the best fixed annuities still have penalties for ending the CD early, so be sure to budget for the lack of that money for the time involved. 

CD annuity rates available are not as good as they have been in the past, and this is due to a soft banking system as of late. Moving forward and seeking out the best fixed annuities despite this soft banking system can seem daunting, but do not be discouraged… there are still a lot of great deals out there for the discerning eye.

The current CD Annuity Rates must be weighed against the risk involved in other investments, of which there are plenty. Balancing one against the other is a crucial step in reaching your optimum investment opportunity, and you should not forget this for a second.

The best fixed annuities can come in a variety of forms, but the CD-type investment is one of the fastest available. If you are looking to make a quick 2-3% from your money, then a six month CD is probably one of your best bets.

Moving forward in this process could involve a financial professional if you are not sure of how to proceed, be careful when consulting directly with a bank since they will be biased. If you have a reliable source of information regarding financial matters, do not be afraid to ask them for advice when it comes to using a financial instrument. The use of a CD is for people who have little to no risk appetite, and who are willing to part with their money for a modest period of time, just be sure to look into all of the details.

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