Bank CD vs. Multi-Year Guaranteed Annuity
Bank CD
Multi-Year Guaranteed Annuity
Multi-Year Guaranteed Annuity
- Usually Short-Term Duration (Less than 5 years)
- Interest is Taxed even though income is not taken
- Interest Rate is Generally lower than MYGA Rates
- FDIC Insurance Up to $250,000
- Probate is Required to Pass to Beneficiaries (If beneficiary is not selected)
Multi-Year Guaranteed Annuity
Multi-Year Guaranteed Annuity
Multi-Year Guaranteed Annuity
- Typically 2-5 years - (Can be up to 10yrs or longer)
- Taxes Deferred Until Money is Withdrawn
- Interest Rate is Generally Higher than Bank CD Rates
- Legal Reserve System by State Insurance
- Value of MYGA will avoid probate (will pass directly to beneficiaries)