CDs vs. Fixed Deferred Annuities: Which Is the Better Safe Money Option?

  • Originally published September 15, 2010 , last updated December 18, 2014

The right choice between a fixed deferred annuity and a certificate of deposit (CD) depends upon the individual's financial situation, investment objectives and time horizon.

Both savings vehicles have their own strengths and weaknesses. But, in general, if someone is looking for a longer-term solution, tax deferral, or lifetime income, a fixed deferred annuity is probably the better choice.

Here is a full breakdown comparing CDs to Fixed Deferred Annuities.