Comparison of CDs Versus Annuities
Let’s take a look at some of the features of CDs and Annuities and see which one comes out on top.
|
BENEFIT
|
BANK CD
|
ANNUITY
|
|
Tax-Deferred Growth
|
No
|
Yes
|
|
Bonus Available on Premium
|
No
|
Yes
|
|
Guaranteed Lifetime Income
|
No
|
Yes
|
|
Loan Privileges
|
No
|
Yes
|
|
Potential Social Security Tax
|
No
|
Yes
|
|
Potential Disability Benefit
|
No
|
Yes
|
|
Avoid Probate Costs and Delays
|
No
|
Yes
|
|
Flexible Premium
|
No
|
Yes
|
|
Potential for Higher Yields
|
No
|
Yes
|
|
Withdraw for RMD Penalty Free
|
No
|
Yes
|
|
Nursing Home Benefit
|
No
|
Yes
|
|
*Penalty-Free Access to Money
|
No
|
Yes
|
|
FDIC Insured
|
Yes
|
No
|
*Partial Free Withdrawals Available
Clearly the Annuities show better in the chart above!
|
|
s
