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

Shawn Plummer

CEO, The Annuity Expert

From Birmingham’s vibrant city life to the Gulf Coast’s tranquil shorelines, Alabama presents many opportunities to grow your savings. This guide serves as your detailed guide, helping you shop and compare the high-yield CD rates, highest savings account interest rates, money market savings rates, and fixed deferred annuity rates available across the Heart of Dixie. Whether banking with a reputable institution, a community credit union, or a user-friendly online platform, our goal is to streamline your journey toward financial prosperity. We’re dedicated to unraveling Alabama’s financial landscape, giving you the knowledge to maximize interest rates and grow your savings. With this guide, navigating the world of finance in Alabama becomes less of a challenge and more of an exciting venture into the realm of wealth accumulation.

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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 CompanyAPY
N/AMoney Market Account – Optimum Bank5.26%
N/AMoney Market Account – FVC Bank5.26%
N/ASavings Account – CloudBank 24/7 5.26%
12 MonthsBread Savings CD5.50%
48 MonthsClear Spring Fixed Annuity5.15%
5 YearsAthene Fixed Annuity5.30%
10 YearsEquitrust Fixed Annuity6.00%
*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.

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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 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 Bank5.30% APY3 Months$1.00
Oklahoma State Bank5.35% APY3 Months$1.00
Western Alliance Bank5.21% 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
Western Alliance Bank5.41% APY6 Months$1.00
Oklahoma State Bank5.40% APY6 Months$1.00
Generations Bank5.41% APY6 Months$1.00

1-Year CD Rates

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

Best 12-Month CD RatesRateTermMinimum
Western Alliance Bank5.51% APY12 Months$1.00
Bread Savings5.50% APY12 Months$1,500.00
Connexus Credit Union5.50% APY12 Months$1.00

2-Year CD Rates

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

Best 2-Year CD RatesRateTermMinimum
Connexus Credit Union4.95% APY24 Months$1.00
Idabel National Bank4.90% APY24 Months$1.00
Bread Savings5.00% APY24 Months$1,500.00

3-Year CD Rates

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

Best 3-Year CD RatesRateTermMinimum
Valley Bank5.60% APY36 Months$500.00
Bread Savings4.75% APY36 Months$1,500.00
The State Exchange Bank4.70% APY36 Months$1.00

4-Year CD Rates

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

Best 4-Year CD RatesRateTermMinimum
Bread Savings4.50% APY48 Months$1,500.00
The State Exchange Bank4.50% APY48 Months$1.00
Barclays4.45% APY48 Months$0.00

5-Year CD Rates

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

Best 5-Year CD RatesRateTermMinimum
Bread Savings4.50% APY60 Months$1,500.00
Barclays4.50% APY60 Months$0.00
The State Exchange Bank4.35% APY60 Months$1.00
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

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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