How To Overcome Low CD Rates

Shawn Plummer

CEO, The Annuity Expert

CD Rates are at their lowest in recent history. This guide will briefly show how to earn more than 1% annually in a CD, have liquidity for income, and protect your original investment from stock market volatility.

How to Overcome Low CD Rates

Many people save for retirement using certificates of deposit, or CDs, which banks and credit unions offer. However, CD rates have been low recently, making it difficult to grow savings. Fortunately, there is an alternative: fixed annuities.

Like CDs, fixed annuities are a type of investment that offers a guaranteed rate of return. However, they often have higher interest rates than CDs, so savers can quickly grow their nest eggs.

In addition, fixed annuities are not subject to the ups and downs of the stock market, so they can be a great way to preserve capital.

Fixed annuities are worth considering for those looking for a safe and effective way to grow their retirement savings.

How To Earn 3% CD Rates

The days of 6% cd rates are in the past. Today, cd rates provide less than 2% of interest to their owners. However, utilizing CD-Like annuities will:

  • Provide 4% or higher interest for income
  • Safety from loss because it’s an insurance policy.
  • Short to long-term contracts
  • The ability to convert into an income stream

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 CompanyInterest Rate
N/AUFB Bank Savings Account5.02%
N/AUFB Bank Money Market5.02%
12 MonthsWestern Alliance Bank CD5.01%
36 MonthsOceanview Fixed Annuity5.00%
48 MonthsAmerico Fixed Annuity5.05%
5 YearsAspida Fixed Annuity5.50%
6 YearsAmerican National Fixed Annuity5.45%
10 YearsAmerican National Fixed Annuity5.45%
*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 article.

Find And Compare The Highest Interest Rates

Find the highest interest rates for your savings ranging from 3 months to 10 years, all in one place.

Next Steps

CD rates are low, but there are ways to get around this. By shopping around and being flexible with your terms, you can still find a good rate on a certificate of deposit. Contact us for a quote – we can help you find the best deal. We have years of experience in the banking industry and know where to look for the best rates. With our help, you can be assured that you’re getting the most competitive CD rate.

How To Overcome Low Cd Rates

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Frequently Asked Questions

Can you lose money in a fixed annuity?

No. A fixed annuity is an insurance policy for retirement. Like a CD or life insurance policy, the policy owner is guaranteed a fixed interest rate for a specific period.

Are there 6% CD Rates available?

No. There are no 6% cd rates available. The highest CD rates are 3% or less net of taxes.

What is better than a CD?

A fixed annuity is better than a CD because the insurance policy offers a higher interest rate, liquidity without a penalty, and terms ranging from 2 years to 20 years.

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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