CD Annuity

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CD Annuity

An instrument that combines features of an annuity and a certificate of deposit. Like a fixed annuity, it gives the annuitant a series of payments each month for the duration of the annuity. Like a CD (and unlike many fixed annuities), the return is guaranteed for the entire life of the instrument. In other words, a CD annuity gives a return similar to a CD, though it is structured like an annuity.
References in periodicals archive ?
There has been a fair amount of interest in CD annuities of late," says Keith Meyers, a certified financial planner and principal of Keith Meyers Inc.
While demand is rising for CD annuities, the products are, paradoxically, getting harder to buy--at least through certain carriers.
Many insurance companies offer CD annuities with rates comparable to or higher than bank CDs.