Summary
The article explains the key differences between certificates of deposit (CDs) and annuities. CDs are bank deposit products where you lock in money for a fixed term and receive a fixed interest rate—ideal for short- to medium-term savings. Annuities, on the other hand, are insurance-based investment contracts designed to provide income in retirement—either immediately or in the future. She also notes a hybrid product: the multi-year guaranteed annuity (MYGA), which resembles a long-term CD but functions as an annuity.
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