Comparing CDs and Annuities
November 14, 2023 by John Stevenson
Bank certificates of deposit, or CDs, and annuities are two popular and safe investment options that can provide a steady income stream for investors.
Both have advantages and disadvantages that depend on a client’s financial goals, time horizon, and risk tolerance.
Rising interest rates have suddenly made both types of products much more attractive.
Here’s a look at how the products work, along with the typical profiles of clients who tend to benefit the most from each type of product.