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Is Your Money Earning 3.5% Interest? It Could Be.

With the market currently in a state of volatility, a fixed annuity is a good place to turn if you are looking for an option to put cash away to earn tax-deferred interest.  Fixed annuities pay a guaranteed amount, and there are currently options for a much higher return than a certificate of deposit from a bank.

A few things I really like about including annuities in your investment portfolio:

  • Money grows on a tax deferred basis.
  • Guaranteed rate of return, offering a predictable payout.
  • Provides a death benefit to beneficiaries.
  • Options for penalty-free withdrawals; liquidity built in for emergencies. (Withdrawal amount limited based on specific contract).
  • Life income options available at annuitization.
  • Options for A+ rated companies.

Below is an example of how $100,000 will grow at 3.5% interest in 7 years:

Year Principal Interest Rate Interest Earned
1 $100,000.00 3.50% $3,500.00
2 $103,500.00 3.50% $3,622.50
3 $107,122.50 3.50% $3,749.29
4 $110,871.79 3.50% $3,880.51
5 $114,752.30 3.50% $4,016.33
6 $118,768.63 3.50% $4,156.90
7 $122,925.53 3.50% $4,302.39








We currently have options for 3.50% interest for 7 years at $100K or more, and 3.10% for 7 years if less than $100K.  We also have 2.25% for 3 years at $100K or more, and 1.80% for 3 years if less than $100K.

It’s a great time to look into your options to decide if an annuity is the right fit for you.