Interest Rate Update (8-29-13)

Photo of a MagicianDo you have LOW earning money at the bank and it’s driving you crazy?

Earn more money with a CD type fixed annuity.

Do you have any CD’s coming due?

Have you looked at what the current renewal rates are? (Try not to cry)

Here’s what a couple local banks are paying right now. According to www.bankrate.com on 8-22-13

1 Year CD

  • Bank of America 0.03%
  • Chase Bank 0.02%

5 Year CD

  • Bank of America 0.35%
  • Chase Bank 0.25%

It’s pathetic.

So on $100,000 at 0.35% interest you will earn a whopping $350 dollars in interest this year.

Here’s what CD type fixed annuities are paying (As of 8-22-13)

CD Type Fixed Annuity

  • 3 Year 2.0%
  • 5 Year 2.75%
  • 7 Year 3.2%
  • 10 Year 3.5%

On $100,000 at 3.2% you will earn $3,200 this year. That’s almost 10 times more interest.

Just swapping your Bank CD into a fixed annuity could pay for an extra vacation this year.

If you have any questions, or want an application mailed out to you, just let me know.

Frequent Questions & Concerns

  • My CD Has a Penalty : With interest rates being so low, the penalty is usually close to nothing.
  • What if Rates Go Up in 2 Years : Then use your 10% free withdrawal from the annuity to start laddering every year at higher rates
  • Are Fixed Annuities Safe? : Yes, very safe
  • What if I Need Some Money? : You can withdraw up to 10% of your account value every year without penalty
  • What Happens if I Die? : The entire account balance passes on to whomever you name as beneficiary. Your spouse would have the option to continue the policy as is.

Rates are subject to change.

If you want to swap a low rate CD into a higher paying CD type annuity, I’ll help you with all the details.

About Carl Ostenson: Specializes in helping his clients use their IRA or 401k to set up their Retirement Income Plan for when they retire. He works with clients in the Chicagoland area and surrounding suburbs. Get more from Carl at www.ProtectMyIRA.com.

 

 

Speak Your Mind

*