The Best Fixed Annuity and CD Rates in California (December 2023)

Shawn Plummer

CEO, The Annuity Expert

In the diverse financial landscape of California, where bustling metropolises like San Francisco, Los Angeles, and San Jose intersect with the governmental heart of Sacramento and the sun-kissed tranquility of Orange County, the opportunities for your money to grow are as vast as the Golden State itself. This blog is your compass to navigate this terrain, thoroughly comparing the best and highest CD rates, money market rates, fixed annuity rates, and savings account interest rates available across the state. Whether banking in the vibrant Bay Area, conducting online transactions from the comfort of your home, or being a credit union member in any of these regions, this guide will help you make informed decisions. By evaluating the offerings from various banks, credit unions, and online platforms, we aim to help you discover the most effective ways to grow your savings and benefit from California’s most competitive interest rates.

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 – American First Credit Union5.29%
N/AMoney Market Account – StagePoint Federal Credit Union5.29%
N/ASavings Account – Customers Bank5.30%
12 MonthsCD – Western Alliance5.51%
5 YearsClear Spring 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.

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 Fixed Annuity Rates In California

The following table highlights the best fixed annuity rates in the United States.

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

The Best CD Rates In California

The following table highlights the best certificates of deposit rates in the United States.

3-Month CD Rates

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

Best 3-Month CD RatesRateTermMinimum
Signature Federal Credit Union5.55% APY3 Months$500.00
Western Alliance Bank5.51% APY3 Months$1.00
Ponce Bank5.40% 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
TotalDirectBank5.76% APY6 Months$25,000.00
Franklin Mint Federal Credit Union5.60% APY6 Months$500.00
Western Alliance5.70% 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
My eBanc5.77% APY12 Months$50,000.00
Popular Direct5.67% APY12 Months$10,00.00
State Bank of Texas5.85% APY12 Months$50,000.00

2-Year CD Rates

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

Best 2-Year CD RatesRateTermMinimum
Luana Savings Bank5.63% APY24 Months$100,000.00
Maple Mark Bank5.40% APY24 Months$25,000.00
Newtek Bank5.60% APY24 Months$50,000.00

3-Year CD Rates

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

Best 3-Year CD RatesRateTermMinimum
U.S. Senate Federal Credit Union5.23% APY36 Months$200,000.00
Mountain Credit Union5.03% APY36 Months$2,500.00
Bread Savings4.90% APY36 Months$1,500.00

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$1.00

5-Year CD Rates

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

Best 5-Year CD RatesRateTermMinimum
Farmers Insurance5.00% APY60 Months$1,000.00
Barclays4.50% APY60 Months$0.00
Bread Savings4.50% APY60 Months$1,500.00
Best And Highest Cd, Annuity, Savings, Money Market Rates In California (Ca)

What Are Fixed Annuities and CD Rates?

Fixed annuities and certificates of deposits (CDs) are two extremely popular investment options that ensure a guaranteed rate of return. When you purchase an annuity, you enter into a contract with an insurance company whereby they promise to provide you with a fixed interest rate in exchange for your lump-sum payment. On the other hand, credit unions and bank CDs guarantee investment returns when placed for specified terms.

The Advantages and Disadvantages of Fixed Annuities and CD Rates

Fixed annuities and CD rates offer several advantages to investors, including:

  • The guaranteed rate of return: Both fixed annuities and CD rates offer a guaranteed rate of return on your investment, providing stability and security for your financial future.
  • Low risk: Fixed annuities and CD rates are considered low-risk investments, making them an excellent option for risk-averse investors.
  • Access to funds: With fixed annuities, you can access your funds through a lump sum withdrawal, annuity payments, or a combination of both. With CD rates, you can access your funds after the maturity date.

However, both fixed annuities and CD rates also have disadvantages, including:

  • Limited flexibility: Once you have invested in a fixed annuity or CD rate, you cannot access your funds without incurring penalties.
  • Low returns: Compared to other investment options, fixed annuities, and CD rates tend to offer lower returns, making them less attractive to investors seeking higher returns.

How to Find the Best Fixed Annuity and CD Rates in California

When searching for the best fixed annuity and CD rates in California, consider the following factors:

  • Interest rate: Look for fixed annuities and CD rates that offer the highest interest rate possible.
  • Length of term: Consider the length of the term when choosing a fixed annuity or CD rate. Longer terms tend to offer higher rates of return but also limit your access to your funds.
  • Insurance company: When choosing a fixed annuity, research the insurance company’s financial stability and track record.
  • Bank: When choosing a CD rate, research the bank’s financial stability and history.

Next Steps

Investing in fixed annuities and CDs is an effective way to secure your financial future. However, selecting the right option for your needs and goals can be difficult. To help you make an informed decision, we’ve put together a guide that reviews California’s best-fixed annuity and CD rate offerings, their advantages and disadvantages, and how various investing strategies can benefit certain people. We hope this has helped help you understand the different types of investments available.

Picking an investment option isn’t a one-size-fits-all choice. Each of us faces unique situations, so take the time to consider your needs before making any decisions. Then, if you still have questions or want assistance narrowing down your options, we’re here to help! Contact us today for more information on our quotes and professional advice.

The Best Fixed Annuity And Cd Rates In California

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed insurance agent and annuity broker with over a decade of first-hand experience. 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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