CD-Type Fixed Annuities

My favorite type of fixed annuity is that which guarantees the interest rate for the entire term. Because the rate is guaranteed, these annuities are often referred to as CD-type fixed annuities or CD-type annuities.

CD-type annuities are very easy to understand. You invest your money. You earn your guaranteed interest rate. At the end of the term, you have access to your principal (and accrued interest) without any penalties.

I believe that CD-type annuities represent one of the best interest rate investments available today. They pay an attractive interest rate and offer other attractive benefits as well. To understand CD-type annuities better, let’s take a closer look at some of the common uses, benefits, and provisions of this investment type.