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Annuities for Saving

Rate

Current first year annual effective interest rate:

How They Work

Fixed deferred annuities offer a tax-advantaged way to save money for retirement. When you purchase a fixed deferred annuity, your money earns a fixed interest rate which initially is set at the time of purchase, similar to a certificate of deposit (CD)2. In subsequent years, a new annual guaranteed interest rate is set in advance.  It will never be less than the annuity’s guaranteed minimum interest rate.

Deferred annuities are long-term savings vehicles and feature withdrawal charges if you make withdrawals or surrender in the early years.  However, if you are prepared to let your money grow for a period of time, you are guaranteed that your savings will grow.

A deferred annuity may offer a higher interest rate than other fixed savings products. Plus, the annuity offers a tax advantage because the money in the annuity grows tax-deferred until you start taking withdrawals or decide to permanently convert the annuity’s accumulated value into an income stream that can be guaranteed for life or for a certain period of time.

Benefits  

The AG Flex 8 Fixed annuity offers:

  • 4% bonus for ABA members on all first year deposits3

  • Minimum first year effective yield of 6.08%4

  • Tax-deferred growth5

  • Liquidity to cover unplanned expenses6

To learn more and receive a rate quote, call 888-320-5427 (M-F 8:00 AM to 8:00 PM, EST).

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2 Fixed annuities offer tax deferral of interest earnings during the accumulation period and are guaranteed by the issuing insurance company, whereas interest income from CDs is reportable and taxable as it is earned, but they are guaranteed by the FDIC. As with other long-term investments, annuities typically impose a schedule of preset early withdrawal charges (though a portion of the annuity may be available penalty-free each year). CDs are generally for more short-term use and have preset early withdrawal penalties on any amounts accessed prior to end of the term; a CD’s withdrawal penalties renew each time the CD is renewed. 
3 4% first-year premium bonus currently available on the deferred annuity product. After the first year, rates will be declared in advance and guaranteed for a year.
4 Based on contractual minimum guaranteed annual interest rate of 2.00%.
5 Based on current federal income tax laws.
6 Premature withdrawals are subject to a withdrawal charge.  You may lose money if you make a complete surrender in the early years of the contract.