Comparison

Annuity vs CD: what is different?

Bank CDs and annuities can both be used by conservative savers, but they are not the same product. CDs are bank deposits, while annuities are insurance contracts.

• CDs may have FDIC insurance within applicable limits; annuity guarantees rely on the insurer.
• Annuities may include tax deferral, income options, surrender charges, and contract riders.
• Access, penalties, renewal terms, and guarantees vary by product and issuer.

Compare the exact terms, not just the headline rate, before deciding which option fits a specific need.