The Best Fixed Annuity and CD Rates in Alabama (March 2023)

Shawn Plummer

CEO, The Annuity Expert

Are you looking for a safe and secure way to invest your hard-earned money in Alabama? If so, you may consider investing in a fixed annuity or a certificate of deposit (CD). These two types of investment vehicles offer different advantages, so it is essential to understand their features and benefits before deciding. This guide will provide a comprehensive guide to the best-fixed annuity and CD rates in Alabama so that you can make an informed decision.

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 Account5.02%
N/AUFB Bank Money Market5.02%
12 MonthsWestern Alliance Bank CD5.01%
36 MonthsOceanview Fixed Annuity5.00%
48 MonthsAmerico Fixed Annuity5.05%
5 YearsAspida Fixed Annuity5.50%
6 YearsAmerican National Fixed Annuity5.45%
10 YearsAmerican National Fixed Annuity5.45%
*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.

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.

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.

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

Here are some of the key 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)

Request A Quote

Get help from a licensed financial professional. This service is free of charge.

Contact Us

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. 

Scroll to Top