The Best Fixed Annuity and CD Rates in Alabama (March 2024)

Shawn Plummer

CEO, The Annuity Expert

The Best Fixed Annuity Rates In Alabama

Investing in a fixed annuity is a good choice for those seeking to generate consistent income during retirement without taking on too much risk. By entering into a contract with an insurance company, you can guarantee yourself a predetermined rate of return throughout your agreement.

Disclaimer: Products are subject to state availability. Please inquire below for details.

The Best Rates To Grow Your Money

TermInsurance CompanyAPY
N/AMoney Market Account – Generations Bank5.29%
N/AMoney Market Account – American First Credit Union5.30%
N/ASavings Account – Customers Bank5.30%
12 MonthsCD – Bread Savings5.35%
5 YearsAnnuity – Wichita National6.30%
*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 guide.

Find And Compare The Highest Interest Rates

Find the highest interest rates for your savings, ranging from 3 months to 5 years, all in one place.

The Best CD Rates In Alabama

A certificate of deposit (CD) is a type of savings account that offers a guaranteed rate of return for a specified period. CDs are typically issued by banks and credit unions, offering a higher rate of return than a traditional savings account.

The main advantage of investing in a CD is the guaranteed rate of return. However, it is essential to understand that you won’t be able to access your money until the CD matures. You may incur significant penalties if you need to withdraw your funds early.

3-Month CD Rates

Banks and credit unions have the highest CD rates for three months.

Best 3-Month CD RatesRateTermMinimum
Ponce Bank5.35% APY3 Months$1.00
Total Direct Bank5.66% APY3 Months$25,000.00
Western Alliance Bank5.36% APY3 Months$1.00

6-Month CD Rates

The following banks and credit unions have the highest CD rates for six months.

Best 6-Month CD RatesRateTermMinimum
CommunityWide FCU5.50% APY6 Months$1,000.00
My eBanc5.51% APY6 Months$50,000.00
Newtek Bank5.55% APY6 Months$50,000.00

1-Year CD Rates

The following banks and credit unions have the highest CD rates for 12 months.

Best 12-Month CD RatesRateTermMinimum
Hudson Valley Credit Union5.67% APY12 Months$750.00
Space Coast Credit Union5.61% APY12 Months$500.00
Lafayette Federal Credit Union5.61% APY12 Months$100,000.00

2-Year CD Rates

Banks and credit unions have the highest CD rates for 24 months.

Best 2-Year CD RatesRateTermMinimum
Luana Savings Bank5.11% APY24 Months$100,000.00
Eastman Credit Union5.40% APY24 Months$1,000.00
Pelican State Bank5.27% APY24 Months$500.00

3-Year CD Rates

Banks and credit unions have the highest CD rates for 36 months.

Best 3-Year CD RatesRateTermMinimum
Mountain Credit Union5.15% APY36 Months$2,500.00
Hughes Federal Credit Union4.97% APY36 Months$99,000.00
Lafayette Federal Credit Union5.20% APY36 Months$100,000.00

4-Year CD Rates

The following banks and credit unions have the highest CD rates for 48 months.

Best 4-Year CD RatesRateTermMinimum
Bread Savings4.15% APY48 Months$1,500.00
NexBank4.45% APY48 Months$10,000.00
Fedchoice Federal Credit Union4.35% APY48 Months$500.00

5-Year CD Rates

Banks and credit unions have the highest CD rates for 60 months.

Best 5-Year CD RatesRateTermMinimum
Farmers Insurance4.25% APY60 Months$1,000.00
Lafayette Federal Credit Union4.63% APY60 Months$100,000.00
Virginia Credit Union4.48% APY60 Months$100,000.00
Best And Highest Cd, Annuity, Savings, Money Market Rates In Alabama

Key Differences Between Certificates Of Deposit (CD) and Multi-Year Guaranteed Annuity (MYGA)

Here are some of the critical differences between Certificates of Deposit (CD) and Multi-Year Guaranteed Annuity (MYGA):

  1. Taxes: The interest rate on a CD is taxable income annually, whereas the interest rate on an MYGA is tax-deferred for the entire term.
  2. Guaranteed returns: CD and MYGA offer guaranteed returns, but the length of the guarantee can vary. The guarantee on a CD is typically limited from one month to five years, whereas the guarantee on an MYGA can extend from two years to twenty years.
  3. Liquidity: MYGAs are generally more liquid than CDs, meaning you can easily access your money in an emergency through penalty-free withdrawals. Like CDs, MYGAs typically have surrender charges, which means you may incur penalties if you withdraw your money before the end of the term.
  4. Penalty for early withdrawal: If you withdraw your money from a CD before the end of the term, you will typically incur a penalty. The penalty for early withdrawal on an MYGA can be much more severe, as it can result in significant surrender charges.
  5. Investment amount: A minimum investment is usually required to purchase a CD which can start at $1 to open an account, whereas MYGAs typically have minimum investment amounts starting around $5,000.

Next Steps

Alabama has several top-rated annuity and CD providers, so choosing the right one for your needs can be challenging. That’s where we come in! Our team at The Annuity Expert is dedicated to finding you the best rates for your investment. Contact us today for a free quote and see how much you could save. Thanks for reading!

The Best Fixed Annuity And Cd Rates In Alabama (Al)

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

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

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