The Best Fixed Annuity and CD Rates in Tennessee (March 2024)

Shawn Plummer

CEO, The Annuity Expert

From the vibrant rhythms of Memphis and Nashville to the scenic landscapes of Chattanooga and Knoxville, Tennessee offers many opportunities to help your savings sing. This guide serves as your concert program, orchestrating your journey as you shop and compare the best interest rates on CDs, high-interest savings account rates, money market account rates, and interest rates on fixed annuities across the Volunteer State. Whether your preference harmonizes with traditional banks, local credit unions, or the streamlined symphony of online banking, our goal is to fine-tune your understanding of Tennessee’s financial composition. By decoding the complex score of interest rates, this guide is your front-row seat to a performance of savings growth that hits all the right notes in TN.

The Best Rates To Grow Your Money

TermInsurance CompanyAPY
N/AMoney Market Account – Generations Bank5.29%
N/AMoney Market Account – American First Credit Union5.30%
N/ASavings Account – Customers Bank5.30%
12 MonthsCD – Bread Savings5.35%
5 YearsAnnuity – Wichita National6.30%
*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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Breaking Down the Best Fixed Annuity Rates in Tennessee

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

Fixed annuities are insurance products that provide a guaranteed rate of return over a specific period. They offer several advantages, including:

  • Guaranteed income: With a fixed annuity, you’ll receive a guaranteed interest rate or income stream for a fixed period or for life, regardless of market conditions.
  • Tax deferral: Your earnings grow tax-deferred until you begin taking withdrawals, which can help you maximize your returns over time.
  • Safety: Fixed annuities are backed by the insurance company issuing them, which means your principal is protected, even if the insurance company goes bankrupt.

However, fixed annuities also have some drawbacks, including:

  • Limited liquidity: You may face penalties if you withdraw your money (above the penalty-free amount) before the end of the contract term.
  • Lack of control: Once you purchase a fixed annuity, you have little control over the investment and may not be able to access your money for several years.

Examining the Best CD Rates in Tennessee

3-Month CD Rates

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

Best 3-Month CD RatesRateTermMinimum
Ponce Bank5.35% APY3 Months$1.00
Total Direct Bank5.66% APY3 Months$25,000.00
Western Alliance Bank5.36% 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
CommunityWide FCU5.50% APY6 Months$1,000.00
My eBanc5.51% APY6 Months$50,000.00
Newtek Bank5.55% APY6 Months$50,000.00

1-Year CD Rates

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

Best 12-Month CD RatesRateTermMinimum
Hudson Valley Credit Union5.67% APY12 Months$750.00
Space Coast Credit Union5.61% APY12 Months$500.00
Lafayette Federal Credit Union5.61% APY12 Months$100,000.00

2-Year CD Rates

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

Best 2-Year CD RatesRateTermMinimum
Luana Savings Bank5.11% APY24 Months$100,000.00
Eastman Credit Union5.40% APY24 Months$1,000.00
Pelican State Bank5.27% APY24 Months$500.00

3-Year CD Rates

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

Best 3-Year CD RatesRateTermMinimum
Mountain Credit Union5.15% APY36 Months$2,500.00
Hughes Federal Credit Union4.97% APY36 Months$99,000.00
Lafayette Federal Credit Union5.20% APY36 Months$100,000.00

4-Year CD Rates

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

Best 4-Year CD RatesRateTermMinimum
Bread Savings4.15% APY48 Months$1,500.00
NexBank4.45% APY48 Months$10,000.00
Fedchoice Federal Credit Union4.35% APY48 Months$500.00

5-Year CD Rates

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

Best 5-Year CD RatesRateTermMinimum
Farmers Insurance4.25% APY60 Months$1,000.00
Lafayette Federal Credit Union4.63% APY60 Months$100,000.00
Virginia Credit Union4.48% APY60 Months$100,000.00

Certificates of deposit, or CDs, are savings accounts that pay a fixed interest rate for a set period, usually from one month to five years. CDs offer several benefits, including:

  • Guaranteed returns: Just like with fixed annuities, the interest rate on a CD is guaranteed, which can provide peace of mind in uncertain economic times.
  • FDIC insurance: CDs are insured by the Federal Deposit Insurance Corporation (FDIC), which provides added security for your investment.
  • Flexibility: CDs come in various terms, so you can choose the length best fits your savings goals and time horizon.

However, CDs also have some drawbacks, including:

Comparing the Best Fixed Annuity Rates in Tennessee with the Best CD Rates in Tennessee

When comparing the best-fixed annuity rates in Tennessee with the best CD rates in Tennessee, there are several key factors to consider:

  • Guaranteed income: Fixed annuities offer a guaranteed interest rate or a guaranteed income stream, while CDs offer only a guaranteed rate of return.
  • Liquidity: Fixed annuities have limited liquidity, while CDs offer more flexibility.
  • Taxation: Fixed annuities offer tax-deferred growth, while CDs are taxed annually.

Next Steps

In summary, Tennessee residents have several options for the future regarding saving money. Fixed annuities and certificates of deposit are both great options that offer low-risk investment opportunities. However, each has its benefits and drawbacks, so it’s essential to research before deciding which one is best for you. If you’re ever unsure, consider talking to a financial advisor who can help you make an informed decision.

Planning can help ensure bright financial prospects in years to come. If our advice has been helpful, or you’d like to discuss more concrete steps toward financial planning, don’t hesitate to reach out and contact us for a quote. We provide personalized advice tailored specifically to each individual’s goals, allowing us to provide the best options available. Thank you for reading, and we hope we’ve provided some helpful information!

The Best Fixed Annuity And Cd Rates In Tennessee (Tn)

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. 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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