You must know all your options when saving and investing for your future. In Pennsylvania, two popular options for long-term savings are fixed annuities and certificates of deposit (CDs). Both offer a fixed rate of return and provide a sense of stability, but they differ in their structure and how they pay out. This guide will compare the best-fixed annuity rates with the best CD rates in Pennsylvania to help you decide which is correct.
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 Pennsylvania
A fixed annuity is a type of investment contract that pays out a fixed rate of return over a specified period. It is often used for retirement planning to provide a predictable income stream during retirement.
Advantages of Fixed Annuities
- Guaranteed income: Fixed annuities offer a guaranteed income stream, so you know exactly how much you’ll receive each year.
- Tax deferral: Earnings from a fixed annuity are tax-deferred, meaning you won’t have to pay taxes on the interest until you start withdrawing the money.
- Safety: Fixed annuities are typically insured by the state, so your investment is protected even if the insurance company goes bankrupt.
Disadvantages of Fixed Annuities
- Limited liquidity: Once you start receiving payments from a fixed annuity, you can’t change your mind and take the money out.
- Penalties for early withdrawal: If you need to withdraw money from a fixed annuity before you reach a certain age, you may face penalties and lose some of your investment.
- Lower returns: Fixed annuities generally offer lower returns than other investments, such as stocks or mutual funds.
The Best CD Rates In Pennsylvania
A certificate of deposit (CD) is a type of savings account that pays a fixed rate of return for a specified period. CDs are FDIC insured, so your investment is protected up to $250,000 even if the bank fails.
Advantages of CDs
- Guaranteed income: CDs offer a guaranteed rate of return, so you know exactly how much you’ll earn on your investment.
- Safety: CDs are insured by the FDIC, so your investment is protected even if the bank fails.
- Flexibility: CDs have a range of terms available, from a few months to several years, so you can choose the term that works best for your financial goals.
Disadvantages of CDs
- Penalties for early withdrawal: If you need to withdraw money from a CD before it matures, you may face penalties and lose some of your investment.
- Limited liquidity: Once you invest in a CD, you can’t access the money until it matures or you face penalties.
- Lower returns: CDs generally offer lower returns than other investments, such as stocks or mutual funds.
Next Steps
To make a smart financial decision for your future, it’s important to consider all the options. Fixed annuities and certificates of deposit (CDs) are two of Pennsylvania’s most well-known savings tools, each offering unique benefits. This guide has given you a useful overview of the differences between fixed annuities and CDs and an overview of today’s best-fixed annuity rates and best CD rates in Pennsylvania.
Now that you understand these long-term investments, why not take the next step? Contact us for a free personalized quote on an annuity or CD investment product that meets your needs. Our financial advisors have years of experience helping customers find the right savings solution to protect their hard-earned money and ensure their retirement dreams come true. Let us help you secure your financial future today!
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Disclaimer: I may receive a small referral fee if you purchase something using a link in this guide.