When investing your hard-earned money, it’s essential to do your research and make an informed decision. However, with so many options available, it cannot be easy to know where to start. If you’re based in Utah, you may consider investing in a fixed annuity or a CD. Both options offer a fixed rate of return, but there are some critical differences between the two. This guide will compare Utah’s best-fixed annuity and CD rates to help you make the right choice for your financial future.
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 | Great Lakes FCU Money Market | 4.40% |
| 12 Months | Western Alliance Bank CD | 5.01% |
| 36 Months | Oceanview Fixed Annuity | 5.10% |
| 48 Months | Americo Fixed Annuity | 5.05% |
| 5 Years | Aspida Fixed Annuity | 5.50% |
| 7 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 Utah
Fixed Annuity Rates in Utah:
Fixed annuities are insurance products that offer a fixed rate of return over a set period. They are a popular option for those seeking a safe and secure investment, as the insurance company guarantees the principal amount. Fixed annuity rates in Utah vary depending on the insurance provider but typically offer higher returns than traditional savings accounts.
Advantages of Fixed Annuities in Utah:
- Guaranteed Principal: The principal amount invested in a fixed annuity is guaranteed by the insurance company, providing peace of mind for investors.
- Fixed Rate of Return: Fixed annuities offer a fixed rate of return over a set period, allowing investors to plan their financial future confidently.
- Tax Deferral: With a fixed annuity, the taxes on the interest earned are deferred until the funds are withdrawn, potentially allowing investors to earn more on their investment.
Disadvantages of Fixed Annuities in Utah:
- Early Withdrawal Penalties: If funds are withdrawn from a fixed annuity before a specified time, investors may be subject to early withdrawal penalties, reducing the overall return on investment.
- Limited Liquidity: Fixed annuities typically have limited liquidity, meaning that funds cannot be easily accessed for a set period.
Best CD Rates In Utah
A CD, or Certificate of Deposit, is a savings product banks and credit unions offer a fixed rate of return over a set period. CDs are insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000, making them a safe and secure investment option. CD rates in Utah vary depending on the financial institution and the term length of the CD.
Advantages of CDs in Utah:
- Guaranteed Principal: Like fixed annuities, CDs offer a guaranteed principal amount, providing peace of mind for investors.
- Fixed Rate of Return: CDs also offer a fixed rate of return over a set period, allowing investors to plan their financial futures confidently.
- FDIC Insurance: CDs are insured by the FDIC up to $250,000, providing additional security for investors.
Disadvantages of CDs in Utah:
- Early Withdrawal Penalties: Just like fixed annuities, early withdrawal from a CD may result in penalties, reducing the overall return on investment.
- Limited Liquidity: CDs also typically have limited liquidity, meaning that funds cannot be easily accessed until the CD matures.
Next Steps
In summary, investing in annuities and CDs in Utah is a wise decision to help secure your financial future. Be sure to compare different institutions and rates as they all differ. This guide highlighted some of the best options available and hopefully was a helpful guide in determining the right choice for you. As economic conditions change, you may want to review different fixed annuity and CD options periodically to ensure you are getting the best rate possible. If you have any questions or want a quote, don’t hesitate to contact us! We would be more than happy to provide objective advice on how to invest your money so that it works for you. Here’s wishing you success on your investment journey!
Request A Quote
Get help from a licensed financial professional. This service is free of charge.
Disclaimer: I may receive a small referral fee if you purchase something using a link in this guide.