Investing in a fixed annuity or CD is a great way to secure your financial future. Both options offer a safe and reliable way to grow your savings, but finding the right one is essential. This guide will compare the best-fixed annuity and CD rates in Missouri so that you can make an informed investment decision.
- The Best Fixed Annuity Rates In Missouri
- The Best CD Rates In Missouri
- Understanding Fixed Annuities and CDs
- Comparing Fixed Annuity and CD Rates in Missouri
- Which is Better: Fixed Annuities or CDs?
- Key Considerations When Comparing Fixed Annuities and CDs in Missouri
- Next Steps
- Earn The Highest Interest Rates On Savings Today
- Request A Quote
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 | Interest Rate |
|---|---|---|
| N/A | UFB Bank Savings Account | 5.02% |
| N/A | UFB Bank Money Market | 5.02% |
| 12 Months | Western Alliance Bank CD | 5.01% |
| 36 Months | Oceanview Fixed Annuity | 5.00% |
| 48 Months | Americo Fixed Annuity | 5.05% |
| 5 Years | Aspida Fixed Annuity | 5.50% |
| 6 Years | American National Fixed Annuity | 5.45% |
| 10 Years | American National Fixed Annuity | 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 Missouri
The Best CD Rates In Missouri
Understanding Fixed Annuities and CDs
A fixed annuity is a type of insurance product that provides a guaranteed income stream in exchange for a lump sum payment. The amount of your investment, the interest rate, and the length of the annuity term determine the income you receive.
On the other hand, a CD (Certificate of Deposit) is a savings product offered by banks and credit unions. It allows you to earn a higher interest rate than a traditional savings account in exchange for leaving your money with the institution for a set period. However, CDs usually come with higher interest rates and penalties for early withdrawal.
Comparing Fixed Annuity and CD Rates in Missouri
Missouri’s average fixed annuity rate is 4.5%, while the average CD rate is 3.5%. However, it’s important to note that these are just averages, and the actual rate you receive will depend on various factors, such as your age, the length of the term, and the size of your investment.
When it comes to fixed annuities, the longer the term, the higher the interest rate. For example, a 5-year annuity might offer a 5% interest rate, while a 10-year annuity might offer a 5.3% interest rate. Therefore, it’s essential to consider the risks of locking in a long-term investment.
With CDs, the interest rate you receive will depend on the length of the term and the size of your investment. For example, a 12-month CD might offer a 2.75% interest rate, while a 36-month CD might offer a 3.25% interest rate. Additionally, many financial institutions offer higher rates for more extensive deposits.
Which is Better: Fixed Annuities or CDs?
The answer to this question depends on your financial goals and personal preferences. For example, fixed annuities provide a guaranteed income stream and are an excellent option for people who want a secure source of income in retirement. On the other hand, CDs are an excellent option for people who want to earn a higher interest rate on their savings and are willing to leave their money with a financial institution for a set period.
Key Considerations When Comparing Fixed Annuities and CDs in Missouri
When comparing fixed annuities and CDs in Missouri, there are a few key factors to consider:
- Interest rates: As mentioned above, the interest rate you receive will depend on the length of the term and the size of your investment. Compare rates from multiple financial institutions to find the best deal.
- Early withdrawal penalties: If you need to withdraw your money before the end of the term, you may be subject to penalties. Make sure to understand the penalties associated with each investment before making a decision.
- Guarantees: Fixed annuities provide a guaranteed income stream, while CDs do not. Make sure to consider your financial goals and the level of security you require.
- Liquidity: Fixed annuities are generally less liquid than CDs. This means it can be more difficult to access your money before the end of the term. You should consider these factors when comparing fixed annuities and CDs in Missouri.
Next Steps
Choosing a fixed annuity or CD is always wise, as they are both proven wealth-building tools. However, you must research or consult experienced advisors to find the best one. We hope this guide provided some insight into the rate comparison of fixed annuities and CDs in Missouri so that you can take the next step confidently. Whether you purchase an annuity or CD for your future, make sure it’s an informed and suitable investment move for your individual needs.
Lastly, don’t forget to contact us for a quote if you have any queries or interest in either of these options. Remember: never underestimate the power of investing in yourself and giving yourself financial security by making careful choices like picking a fixed annuity or CD!
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Disclaimer: I may receive a small referral fee if you purchase something using a link in this guide.