Fixed Annuity vs CD Annuity Rates

For those who are unfamiliar with these investment terms, this could shed a little light for you. By definition, fixed annuity is a contract with a particular insurance company which pays a fixed amount in the duration of the contract. More often than not the insurance company would pay until the annuitant passed away.

On the other hand CD annuity is a contract between the annuitant and the insurance company which states that a fixed rate will be given within the duration of the contract. Normally the contract is between 1 to 10 years, the rates may vary from 3-10%. The cd type annuity rates 2011 is not the same as the rate in the past years. It is very important to know the details about the investment before affixing your signature. The rate will not change within the duration of the contract.