Ken Boyd

With our high rate environment and uncertain markets, you may be wondering which low-risk investment vehicle is best for your savings – annuities or CDs (certificates of deposit). While both have their advantages there are some key distinctions to make between the two. First, is that CDs tend to be for savers with shorter time horizons. Typically FDIC-insured banks and NCUA-insured credit unions offer CDs with fixed-rates for terms between 6 months and 5 years.

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The current interest rate environment makes it difficult for investors to earn a reasonable rate of return. Income investors, such as retirees, need earnings to pay for living expenses, and producing a sufficient level of income is a challenge. Investment rates of return at traditional lending institutions are near historical lows. Savings accounts, checking accounts, and certificates of deposit rates may not be attractive to you.