A reader forwarded me some info she received on fixed annuities. She has two fixed annuities with features very similar to CDs (often called CD type annuities), and she has been happy with these. Below are a few pros and cons of CD type annuities. Do you know of other pros or cons? Have you had experience with these?
- Rates are a little higher than CDs with similar terms
- Interest is tax deferred
- Features are not as transparent or simple as CDs
- Not FDIC insured, Only guaranteed by insurance company
- Insurance reps often push other annuities that are more questionable