Investing your hard earned money is crucial, and finding the best investment option that aligns with your financial goals is essential. If you’re based in Mississippi, you might be interested in fixed annuities and CDs as investment options. Both of these investment options offer security and stability, but there are differences between the two that you should be aware of before making a decision. This guide will compare the best-fixed annuity and CD rates in Mississippi to help you choose the right investment option.
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.
| Term | Insurance Company | APY |
|---|---|---|
| N/A | CloudBank Savings Account | 5.05% |
| N/A | Ponce Bank | 5.05% |
| 12 Months | Bread Savings CD | 5.20% |
| 24 Months | Idabel National Bank | 5.05% |
| 48 Months | Americo Fixed Annuity | 5.05% |
| 5 Years | Americo Fixed Annuity | 5.25% |
| 10 Years | American National | 5.45% |
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.
The Best Fixed Annuity Rates In Mississippi
Below is a list of some of the best-fixed annuity rates in MS.
The Best CD Rates In Mississippi
Below is a list of some of the best CD rates in MS.
It’s important to note that these rates are subject to change, and you should compare the rates offered by different banks and insurance companies before making a decision.
What are fixed annuities and CDs?
A fixed annuity is a contract between you and an insurance company. You make a lump-sum payment or a series of payments, and in return, the insurance company guarantees to pay you a fixed amount of money in the future, usually during your retirement. Fixed annuities are popular with retirees and people looking for a guaranteed future income.
A certificate of deposit (CD) is a savings account with a fixed interest rate and a fixed term. You deposit for a specific period, usually three months to five years, and in return, the bank guarantees to pay you a fixed interest rate for that term. CDs are considered safe investments, as they are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 per depositor per bank.
Differences between fixed annuities and CDs
While both fixed annuities and CDs offer security and stability, there are differences between the two investment options:
- Guaranteed income: Fixed annuities offer a guaranteed source of income in the future, whereas CDs offer a guaranteed interest rate for the deposit term.
- Access to funds: Fixed annuities typically come with surrender charges if you withdraw funds before maturity. You can withdraw funds from a CD without penalty, but only after maturity.
- Taxation: Interest earned from CDs is taxed as ordinary income, whereas annuity income may be taxed differently, depending on the type of annuity and how it was funded.
- Investment size: Fixed annuities typically require a more significant investment size, whereas you can open a CD account with as little as $500.
Next Steps
In conclusion, investing money is essential for your financial future, and finding the right investment option can be difficult. Knowing the pros and cons of each and which will align best with your goals and objectives is essential for making an informed decision.
Fixed annuities provide a steady growth rate on more significant contributions, while CDs offer security but usually have higher interest rates than savings accounts. However, both appear to offer great rates for Mississippi investors.
If you still feel overwhelmed by either option, you might consider speaking to an experienced financial advisor or using our online quote tool to gain more information about both options. It’s never too late to secure your financial future; contact us today for a quote!
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Disclaimer: I may receive a small referral fee if you purchase something using a link in this guide.