The Best Fixed Annuity and CD Rates in Tennessee (September 2023)

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.

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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 – Optimum Bank5.26%
N/AMoney Market Account – FVC Bank5.26%
N/ASavings Account – CloudBank 24/7 5.26%
12 MonthsBread Savings CD5.50%
48 MonthsClear Spring Fixed Annuity5.15%
5 YearsAthene Fixed Annuity5.30%
10 YearsEquitrust 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.

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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 Bank5.30% APY3 Months$1.00
Oklahoma State Bank5.35% APY3 Months$1.00
Western Alliance Bank5.21% 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
Western Alliance Bank5.41% APY6 Months$1.00
Oklahoma State Bank5.40% APY6 Months$1.00
Generations Bank5.41% 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
Western Alliance Bank5.51% APY12 Months$1.00
Bread Savings5.50% APY12 Months$1,500.00
Connexus Credit Union5.50% APY12 Months$1.00

2-Year CD Rates

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

Best 2-Year CD RatesRateTermMinimum
Connexus Credit Union4.95% APY24 Months$1.00
Idabel National Bank4.90% APY24 Months$1.00
Bread Savings5.00% APY24 Months$1,500.00

3-Year CD Rates

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

Best 3-Year CD RatesRateTermMinimum
Valley Bank5.60% APY36 Months$500.00
Bread Savings4.75% APY36 Months$1,500.00
The State Exchange Bank4.70% APY36 Months$1.00

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$0.00

5-Year CD Rates

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

Best 5-Year CD RatesRateTermMinimum
Bread Savings4.50% APY60 Months$1,500.00
Barclays4.50% APY60 Months$0.00
The State Exchange Bank4.35% APY60 Months$1.00

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

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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