5.25% interest on your savings? Yes, please!

Shawn Plummer

CEO, The Annuity Expert

The Fed made the biggest interest rate hike since 2000. This is good news for savers! When the Fed raises rates, banks, credit unions, and insurance companies typically follow suit and raise their rates on savings products like CDs and fixed annuities. Like most people, you are probably tired of earning next to nothing on your savings. The average interest rate on a certificate of deposit (CD) is just 1.27%, which is pathetic! But don’t worry, there is a solution. This guide will show you how to beat CD rates and earn up to 5.25% on your savings!

Here’s how it works

Instead of investing your money in a CD, you can invest it in a high-yield fixed annuity. Many different online banks offer these accounts, and they typically have interest rates that are much higher than traditional banks. For example, at the time of this writing, Canvas Annuity offers a rate of up to 4.60%.

This may not be as good as 6% CD rates, but this is the highest spike in interest rates in over a decade for fixed annuities.

Earn The Highest Interest Rates On Savings Today

Fixed annuities are almost identical to Certificates of Deposit (CDs) accounts and provide higher interest rates and penalty-free withdrawals for income.

TermInsurance CompanyInterest Rate
N/AUFB Bank Savings Account3.83%
N/AWestern Alliance Bank Savings Account4.23%
N/ABlue Federal Credit Union Money Market4.15%
27 MonthsSallie Mae CD5.00%
36 MonthsCanvas Fixed Annuity*5.50%
48 MonthsAmerico Fixed Annuity5.15%
5 YearsCanvas Annuity*5.60%
6 YearsAmerico Fixed Annuity5.45%
7 YearsCanvas Annuity*5.70%
10 YearsOceanview Annuity5.10%
*Fixed annuities are only for saving money to use in retirement.

Disclaimer: This is a review. The Annuity Expert is not associated with a bank or credit union. However, fixed annuities are sold at most financial institutions. We aim to help you find the highest interest rates for your retirement savings. We may receive a small referral fee if you purchase something using a link in this article.

Find And Compare The Highest Interest Rates

Find the highest interest rates for your savings ranging from 3 months to 10 years, all in one place.

Fixed Annuities Are Almost Identical To Certificates Of Deposit

The biggest difference between a fixed annuity and a CD is that with a fixed annuity, your money is invested in an insurance company. This may sound risky, but it’s not. State governments regulate insurance companies and must maintain a certain amount of reserves. So your money is just as safe in a fixed annuity as in a CD.

Another difference is that fixed annuities have higher interest rates than CDs. But, this is because insurance companies can invest your money in riskier investments than banks, and they don’t have to worry about FDIC insurance.

So if you’re looking for a safe way to earn high interest on your savings, a fixed annuity is the way to go. Just make sure to do your research and choose a reputable company.

What’s The Difference Between A CD And Annuity?

CDs and annuities are both financial products that can be used to grow your savings, earning a fixed interest rate, but there are some key differences between the two.

  • A CD, or certificate of deposit, is a type of savings account that offers a fixed interest rate for a set period of time. You typically cannot withdraw money from a CD without paying the penalty. Still, at the end of the term, you will have access to your original investment plus any interest accrued.
  • On the other hand, an annuity is an insurance product that can be used as a retirement savings tool. With an annuity, you make regular payments into the account, and the money grows tax-deferred until you retire. At that point, you can take withdrawals from the account (like a savings account) or choose to receive regular payments (known as an annuity income stream).
  • Annuities also accept funds from an IRA and 401(k) too!

CDs and annuities can be valuable additions to your portfolio, but it’s important to understand how they work before deciding which is right for you.

Which One Should You Choose?

CDs and annuities have pros and cons, depending on your individual needs and goals. An annuity is probably a better choice if you need to access your money right away. However, a CD may be the better term investment if you’re looking for a long-term investment and don’t need immediate access to your money. You don’t need immediate access to your cash; a CD may be the way to go.

Get A Quote!

With the Federal Reserve raising the rates, Americans can earn an above-than-average interest rate on their retirement savings. So, check out high-yield fixed annuities if you’re tired of earning nothing on your savings! They are a great way to earn more interest in your money. And, with rates as high as they are right now, there has never been a better time to invest in one of these accounts. So what are you waiting for? Start earning more interest today!

Do you have any questions about how high-yield fixed annuities work? Contact us now!

The Federal Reserve Increased Interest Rates By Half A Percentage Point. This Is The Biggest Increase In Two Decades. They Did This To Fight Inflation. Interest Rates For Savings Accounts Like Certificates Of Deposit And Savings Accounts Have Increased The Highest Too.

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Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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