What Is CD Type Annuity?
CD type annuity refers to a fixed rate investment option, offered by insurance company for a fixed number of years. Here are few most salient features of this type of annuity: • The term period fixed for this annuity generally lies between 1 to 10 years. • The policyholder may enjoy his or her benefits on monthly, quarterly or yearly basis. • These are tax-deferred investment options, helping the investor to enjoy tax freedom. • Most importantly, unlike bank based CD investment options, CD Type Annuity options offer a fixed rate of interest for whole term. Thus, no need to frustrate yourself anymore due to changing bank’s rate of interests. You always know what you are going to get in the form of return on your investment. • It is considered as a safe option, which is not accompanied by any type of burdensome fees structure. • Another wonderful aspect of CD Type Annuity is that it allows you to reinvest the money earned by you through this investment’s rate of interest. Are There Any F
