Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

Equity Linked CDs, Fixed Annuities, or CDs


In the Expert Click article “Fixed Annuities vs. CDs: Is One Better Than the Other?,” financial planner Greg Womack weighs the pros and cons of the different investments.  Whether fixed annuities or bank certificates of deposit (CDs) are best depends on each individual situation.  Investors can also look into equity linked CDs, which have some characteristics similar to both annuities and CDs.  CDs and fixed annuities are both safe investments, however unlike the FDIC insurance banks provide CDs, fixed annuities are backed by the insurance companies who sell them.  If you want to invest over the long term, annuities are more the investment for you because CDs tend to be useful for short term investments.

Consider the rate of return you will receive with your investment.  While fixed annuities and CDs tend to offer similar interest rates for similar products, the longer you hold an investment you usually receive more interest.  Since fixed annuities are meant for the long term, you most likely will get more guaranteed interest with this investment.  The equity linked CD criteria is different from both fixed annuities and traditional CDs because your interest is based on a stock market index, more like a variable annuity.  There are definitely tax benefits associated with fixed annuities, so if you have any concern over paying taxes the deferral and social security calculations offer great benefits with your annuity product over your CD.  Annuities are meant to provide you payments over your lifetime, while CDs are beneficial when you want to take a lump sum out at maturity.  Weigh the pros and cons of all investments with your future goals to see what investment is best for you.

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help. For the fastest response, please select 'Phone' as your Contact Preference.

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).