Finding Great Fixed Annuity Rates

When you are compiling wealth for your retirement, a few things come to mind.  For example, a personal savings account.  You might also know about a 401K.  However, many people are unfamiliar with fixed annuity rates.  Fixed rate annuities are very much like certificate’s of deposits (CDs) that you get from your bank.  However, the main difference is that they are mainly used for retirement savings.  This means that you have a certain amount of money and you cannot touch it for a predetermined number of years.  The interest rate on that is also locked.  In this post, we’ll be looking at how to find the best annuity rates possible for your investment portfolio.

In order for a fixed rate annuity to work, you must make an initial deposit.  This is often a large amount of money starting at $5000.  As an annuity buyer you don’t have to worry about the money because there is very little risk involved.  Plus, if you need to liquidate your assets, you can do this easier than with a typical CD.  Fixed annuities rates are usually between 3 and 10%.  However, if you liquidate them early, you may lose all of this interest.  This is why it is better to not over extend the amount you want to invest.  This is not a hasty decision to make.  Once you put aside this money, it is important that you leave it there.  Although liquidating your assets may be necessary at some point, it is not advised.  In addition to losing your interest, the financial institution may also require that you pay an additional fine.  Be sure to read the fine print.

In order to get the best fixed annuity rates, you need to shop around.  Different financial institutions offered different rates.  They also have different packages.  For example, in order to get 10%, you may need to deposit $10,000 for 10 years.  Often, the best fixed annuity rate will have this kind of stipulation.  All you need to do is pick a company that you are comfortable with and agreed to their terms.

Fixed annuity interest rates are stable as long as you sign a contract.  Annuity buyers are always interested in getting the highest fixed annuity rates possible and may find that they are closed out after a certain dollar amount.  If you have a very large amount of money to invest, you will need to shop around to many different financial institutions.  This can also be a good way to protect your money.  The FDIC insures investors up to a certain amount.  For this reason, it is better not to put all of your money in one financial institution if you are investing more than $100,000.

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