Certificate of Deposit

A certificate of deposit (CD) a FDIC-insured financial instrument issued to a depositor by a bank or other financial institution such as a savings and loan. Certificates of deposits have a fixed term of a number of months or years during which the depositors may not remove their funds without incurring withdrawal fees. Depositors earn a fixed or variable return on their funds and receive the principal plus accrued interest at the maturity date. CDs are often perceived as low risk investments that are comparable in some ways to immediate fixed annuities.

Calculating the Extra Yield Provided by a Life Annuity

A common question is how annuities compare to other financial products that seem similar such as bonds, certificates of deposit (CD) and money market funds.  After all, each of these products promises to provide some type of fixed return in exchange for your investment. 

Looking at a simple life annuity can help answer this...

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Full List of Annuity Types

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Annuity Digest Buying Guide: Comprehensive List of Annuity Types

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Sales of Indexed Annuities Rise and Record Projections for 2009

Turmoil from the financial crisis drives record sales in fixed annuities. Uncertainty in equity markets has fueled part of the growth. The guarantee in indexed annuities is the defining difference from variable annuities, enticing customers seeking protection against further losses. Sales of indexed annuities often go up when sales of variable annuities go down or when certificate of deposit rates — a competitor for annuities — are unfavorable, Moore said. Total 2008 indexed annuity sales were...