Bank CDs offer a known fixed rate over a short term, FDIC insurance, and full principal access at maturity. Earnings are taxed each year as interest income.
Fixed Indexed Annuities offer principal protection from market losses, growth potential linked to a market index, tax-deferred accumulation, and optional lifetime income riders. They typically have longer surrender periods and early-withdrawal charges.
Many retirees use both — CDs for short-term safety and liquidity, FIAs for longer-term, tax-deferred retirement income strategies.
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