Plano, Texas (214) 450-5589

Elders Financial LLC
BBB A+ / Inc. 2001

Best Interest Rates Alternative on CDs in Mckinney Texas & Allen Texas

CD-Type Fixed Annuities

These conservative investments have become a popular alternative to bonds.

The CD-Type Fixed Annuity is much like a bank certificate of deposit, in that you go into it for a stipulated number of years and receive a guaranteed contractual interest yield for that period of time. Much like the CD, if you withdraw funds in excess of the contracted benefits, you will receive a surrender fee on those excess funds.

It is straightforward - - you know what you are getting. Much like US Bank CD Rates, the insurance company in the policy (contract) spells out the annuity benefits and yield. You know exactly what your investment is worth at the end of the investment period.

Currently, the CD-Type Fixed Annuity for a long-term investment horizon (3 – 10 years), yields as much as 1 1/2 % more than equivalent bank certificates of deposit. Best Bank Interest Rates on long-term bank CD’s only allow the withdrawal of earned interest, while the CD-Type Fixed Annuity will allow as much as a 15% withdrawal of account value without penalty. CD-Type Fixed Annuities (like all annuities) enjoys the advantage of tax deferral of interest growth, while in a bank CD (non-qualified), you receive a year-end 1099 reporting interest earned, whether you withdraw it or not.

As of June, 2016, interest rates on 1 - 5 year CD-Type Fixed Annuities is 1.5 - 3.23% APY. In contrast, local bank CD's are offering .45 - 1.75% APY (you can do better at Credit Unions and Internet banks) for that one to five year maturity. Clearly the CD-Type Fixed Annuity significantly outperforms the CD on yield, and they are tax-deferred as well.

Maybe the best way to demonstrate the attractiveness of the CD-Type Fixed Annuity is by a financial concept called "laddering." We are huge proponents of laddering - - - purchasing multiple bank CD's or CD-Type Fixed Annuities having staggered maturities. It is a meaningful way to consider the improved yield of the CD-Type Fixed Annuity over the Best Jumbo CD Bank Rates.

A ladder of the National average of bank CDs with a 1, 2, 3, & 5 year durations has an average yield of 1.06%, while the CD-Type Fixed Annuity averages 2.22%. More than double the yield!

CD Style Annuity:

A Comparison Bank
CD Style
Premiums not reduced by commissions
Liquidity options
Tax deferred compounded earnings
A guaranteed lifetime income option
Can pay to an heir generally without probate
May be considered exempt from creditors in most states

Contact Info:

David Winer, President Elders Financial LLC
4125 Stanton Blvd. Plano, TX 75093

Telephone Office: 214-450-5589