CD Annuity

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 ?
A lot of people are now very attracted to the CD annuity.
The CD annuity, a type of fixed annuity, offers a multi-year guaranteed rate of interest that typically lasts for the duration of the surrender charge period.
But even when available to purchase, a CD annuity should play but a limited role in a client's portfolio, say experts.