Fixed Annuity Rates Search

 

Welcome to Fixed-Annuity-Search.com This website is created for Michigan residents and helps you find some of the highest rates on fixed CD-type annuities available in our state. We work with many insurance companies and you can count on us to find you the best deal without bias for any particular insurance company. If you contact us, we will keep your personal information confidential and use it only to contact you in order to respond to your request. Below you can find some of the highest rates on fixed CD-type annuities available to Michigan residents from insurance companies rated A- or better by A.M. Best. If you are interested in any particular product and would like to receive an information package or fill out an application, please contact us using our contact form or by calling us toll free at 866-225-0072.

CD-Type (Multi-Year Guarantee - MYG) Fixed Annuities* . The rates reflected as of 11/01/2014.

The fixed annuity rate information is provided by the respective insurance carriers. More information is available upon request.

Number of Years Company Name Product Name Annual Effective Yield A.M. Best Rating Max Issue Age Min premium
4 years Integrity Life MultiVantage 4 1.25% A+ 86 $20,000
5 years Integrity Life MultiVantage 5 1.45% A+ 86 $20,000
7 years Integrity Life MultiVantage 7 2.09% A+ 86 $20,000
10 years Integrity Life MultiVantage 10 2.40% A+ 86 $20,000

* The above information is intended for use by Michigan residents only. Some of the products may be not approved for some states. If you are a resident of a state other than Michigan, please exit this website and contact an insurance professional licensed to conduct insurance business in your state.

Fixed annuities may not be for everyone. There are fees and expenses associated with fixed annuities that may not be apparent with other fixed income investments. You should make sure you fully understand the annuity before purchasing the product. Our firm does not provide legal or tax advice. Be sure to consult with your own legal and tax advisors before taking any action that may have tax implications.



What is an annuity?

What is the difference between fixed and CD-Type or Multi-Year Guarantee (MYG) annuities?

What is bonus fixed annuity and what are its caveats?

What is the difference between immediate and deferred annuity?

What are the differences between CD-type and indexed annuities?

What is the tax treatment of fixed annuities?

What do I need to know about surrender charges?

How safe is my investment in a fixed annuity?



Q.: What is an annuity?
A.: An annuity is a legal contract between an insurance company and an annuity owner.

Q: What is the difference between fixed and CD-Type or Multi-Year Guarantee (MYG) annuities?
A: CD-type or MYG annuity is a type of fixed annuity that offers a rate guarantee for the entire term of the contract. By contrast, some other fixed annuities offer a rate guarantee for a portion of the contract term and allow the credited rate of interest for the remainder of the term to drop to the contract minimum, which can be as low as 1%

Q: What is bonus fixed annuity and what are its caveats?
A: A bonus fixed annuity offers unusually high rate compared to the prevailing interest rates for the first year and allows the insurer to determine the rate paid after that for the remainder of the contract term. This creates a risk that the insurer needs to recoup the high rate paid in the first year and may assign an unusually low rate for the remainder of the contract term. The annuity owner in this case has very little recourse since the surrender charges apply should he/she decide to withdraw the funds after the first year.

Q: What is the difference between an immediate and a deferred annuity?
A: An immediate annuity turns a lump sum into a stream of income for the life of the annuity owner or another person(s). A deferred annuity is an accumulation vehicle that grows over time and accrues interest and is usually funded by a lump sum.

Q: What are the differences between CD-type and indexed annuities?
A: Both are considered fixed annuities because the value will not go down as long as the contract is held until the end of the term and there were no withdrawals from the contract. Fixed CD-type annuities credit a specified rate of interest that cannot go up or down for the duration of the specified period once the contract is issued. Fixed indexed annuities allow the annuity owner to receive an interest rate derived from the performance of a certain basket of securities, often an S&P 500 index, and may credit a specified percentage of the increase in the index to the annuity contract in up periods, up to the cap. In down periods, the value of the contract does not go down as the contract owner does not participate in the downward movement of the underlying index. Fixed indexed annuities are great for risk-averse investors who want their investment to keep up with inflation without the stomach-wrenching ups and downs of the market.

Q: What is the tax treatment of fixed annuities?
A: Your investment grows tax-deferred inside the fixed annuity, which means you do not need to pay taxes on the interest credited until you take the money out of an annuity. When you do take the money out, the earnings will be taxed as ordinary income and if you are younger than 59 1/2 at the time of withdrawal, you will owe the IRS a 10% penalty. This means that to avoid the penalty at the end of the contract term you will have to put the proceeds into another annuity. At that time you can shop for the best rate, choose another insurance company and transfer the funds to the new company without triggering a 10% penalty. This is called a 1035 exchange.

Q: What do I need to know about surrender charges?
A: If you decide to withdraw funds from the contract prior to the end of the contract term, surrender charges may apply. Usually, the longer the contract term, the higher the percentage of surrender charges. The longer you hold the contract, the smaller the percentage of the surrender charges becomes. Surrender charges are used to reimburse the insurance company for the expenses associated with issuing the contract, particularly the commission paid to the insurance agent. It is important to know the surrender charge schedule and make sure that you are comfortable with holding the annuity until the end of the contract term to avoid paying high surrender charges.

Q: How safe is my investment in a fixed annuity?
A: The repayment of principal and interest is guaranteed by the claims-paying ability of the insurance company that issues the annuity contract. CD-type annuities are NOT FDIC-insured. That is why it is important to pay attention to the rating of the insurance company provided usually by A.M. Best and S&P. Our site only displays rates by insurers who are rated A- or better by A.M. Best. Usually, the lower the rating of the insurer, the higher the rate they will pay to compensate investors for the higher risk of default.



* The above information is intended for use by Michigan residents only. Some of the products may be not approved for some states. If you are a resident of a state other than Michigan, please exit this website and contact an insurance professional licensed to conduct insurance business in your state.

Fixed annuities may not be for everyone. There are fees and expenses associated with fixed annuities that may not be apparent with other fixed income investments. You should make sure you fully understand the annuity before purchasing the product. Our firm does not provide legal or tax advice. Be sure to consult with your own legal and tax advisors before taking any action that may have tax implications.