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| What is the difference between an annuity and a Certificate of Deposit (CD)? |
| A Certificate of Deposit (CD) is an interest-bearing account with rates that you can lock in for a given period of time.
An annuity is very similar in that you can guarantee a particular rate for a given period of time, but there are some primary differences. The primary difference is
that interest earned on your money with an annuity is tax-deferred, whereas interest earned with a CD is taxable each year. A CD is issued by a bank or financial
institution and is guaranteed by the FDIC. The issuing insurance company guarantees an annuity. |
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