Annuities & retirement
Fixed annuities
In plain EnglishYour savings earn a set interest rate for a set number of years, with a guaranteed minimum rate — steady, predictable growth with no market risk.
What it is
A fixed annuity is the simplest way to grow savings with an insurance company. You lock in an interest rate for a period you choose, and your money grows at that rate — no matter what the stock market does. There’s also a guaranteed minimum rate, so your growth never falls below a set floor.
It works a lot like a certificate of deposit, but it’s issued by an insurance company and your growth is tax-deferred: you don’t pay taxes on the interest until you take money out. When you’re ready, you can take withdrawals or turn the balance into a steady income for life.
How it works
Step by step.
- Choose your periodPick how long you want your rate locked in — shorter or longer terms are available.
- Put your money inOne deposit, or ongoing payments over time — often a rollover from a 401(k), an IRA, or savings.
- It grows at your fixed rateTax-deferred, with a guaranteed minimum rate underneath it.
- Take income when you’re readyWithdrawals, a lump sum, or a paycheck for life.
The honest version
What’s good, and what to watch.
Every product has trade-offs. We’d rather you hear them from us now than discover them later.
What we like
- A set interest rate you know in advance
- Guaranteed minimum interest rate
- No market risk
- Tax-deferred growth
- Can become lifetime income
What to watch
- Surrender charges if you take out more than allowed in the first years
- Withdrawals before age 59½ may carry a 10% IRS penalty
- Keep your emergency money somewhere else
Frequently asked questions
Straight answers.
How is it different from a CD?
Both pay a set rate for a set period. A fixed annuity is issued by an insurance company, grows tax-deferred, and can be turned into income for life.
What happens when the period ends?
You can renew, move the money to another annuity, take it out, or turn it into income. We’ll review your options with you before it ends.
Can I take money out along the way?
Many contracts let you withdraw a portion each year — often about 10% — without a surrender charge. We’ll show you the exact rules before you sign.
Often paired with
Related coverage.
Indexed annuities
Growth linked to a market index like the S&P 500, protected from index drops.
Learn more →Annuities & retirement income
Protect savings from market drops and turn them into income you can’t outlive.
Learn more →Whole life insurance
Coverage for your whole life, with premiums that never go up and cash value that never earns a negative rate.
Learn more →General information, not tax or legal advice. Features, availability and rules vary by insurance company, product and state — we’ll walk you through the details of any policy before you apply.
Is this right for you?
Tell us a little about your family and goals. We’ll compare your options side by side — no pressure, no obligation.