Yes, there are 2-year fixed annuities.
Fixed annuities are insurance contracts where an individual pays a lump sum to an insurance company, which in return, guarantees a fixed interest rate on the investment for a specified period. A 2-year fixed annuity offers a guaranteed rate for two years. After this period, the annuity can be renewed, withdrawn, or rolled into a different investment. These annuities are popular for individuals seeking a stable, short-term investment with a guaranteed return.
Examples of 2-Year Fixed Annuities
- Standard Fixed Annuity: A lump sum investment with a guaranteed interest rate for two years.
- Multi-Year Guaranteed Annuity (MYGA): Similar to a standard fixed annuity, but specifically designed for a two-year period.
Benefits of 2-Year Fixed Annuities
- Guaranteed Interest Rate: Protects against market volatility.
- Short-Term Commitment: Ideal for those seeking a temporary, stable investment.
- Predictable Income Stream: Provides consistent returns for the duration of the annuity.
- Interest Rates: May be lower compared to longer-term annuities.
- Early Withdrawal Penalties: Can incur fees for withdrawing funds before the term ends.
- Renewal Options: Interest rates may change upon renewal after two years.
2-year fixed annuities offer a blend of stability and short-term investment commitment, suitable for individuals seeking guaranteed returns without long-term engagement. For more information and a tailored recommendation based on your specific financial goals, contact us today for a free quote.
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