CD maturing? · Northern Virginia

Before your CD renews, see your options side by side.

A CD, a fixed annuity (MYGA) and a fixed index annuity can all keep your money out of the stock market. They differ in rate, taxes, access and who backs them. Here is how they compare, and a complimentary side-by-side for your own CD from Brandon Lloyd, CFP®, in Alexandria.

Get My Side-by-Side Or call or text (571) 368-6178

CD, MYGA and fixed index annuity compared

All three avoid stock market losses. None of them is right for money you may need soon.

Feature	Bank CD	MYGA (fixed annuity)	Fixed index annuity
What it is	A bank deposit for a set term	An insurance contract with a fixed rate for a set term	An insurance contract that credits interest based partly on a market index
Interest	Fixed for the term	Fixed for the term, often 3 to 10 years	No fixed rate. Interest follows an index, limited by a cap or participation rate, with a 0% floor in down years
Market declines	Not affected	Not affected	Index declines do not reduce your contract value, but surrender charges and rider fees can
Who backs it	FDIC insurance, up to $250,000 per depositor, per bank, per ownership category	The issuing insurer’s claims-paying ability; not FDIC insured	The issuing insurer’s claims-paying ability; not FDIC insured
Taxes on interest	Taxed each year, even if you leave it in	Tax-deferred until you withdraw it	Tax-deferred until you withdraw it
Getting money out early	An early withdrawal penalty, often several months of interest	Usually a yearly free amount; more than that during the surrender period costs a surrender charge and may have a market value adjustment	Usually a yearly free amount; surrender periods are often longer, 7 to 10 years, with the same charges
Before age 59½	No IRS penalty	Taxable interest withdrawn may face a 10% federal tax penalty	Taxable interest withdrawn may face a 10% federal tax penalty
Often a fit for	Money you may need within a year or two	Money you can leave for the full term, wanting a set rate	Money you can leave longer, wanting some growth potential without market losses, sometimes with an optional income rider

Keep your emergency fund in savings or a CD. See today’s MYGA rates in Virginia, updated every morning.

Get a side-by-side for your CD

Tell us roughly how much and when it matures. Brandon will call you with your options compared, including simply renewing the CD. Complimentary, with no obligation.

Before you choose

Renewing may be the right answerIf you may need the money within the term, or want FDIC coverage, a CD can be the better choice. We will say so.

Surrender periodsAnnuities are built for money you can leave alone. Pick a term you can wait out, and know the yearly free withdrawal amount.

Caps can changeA fixed index annuity’s cap or participation rate is usually set for a year or a term, and the insurer can change it at renewal.

Insurer strengthAn annuity’s guarantees are only as strong as the insurer behind it. We show each insurer’s AM Best rating.

Who you’ll talk withBrandon Lloyd, CFP®

Founding Partner & President, Mountain View Wealth Management · Licensed Virginia insurance agent

A fiduciary financial planner at 6001 Tower Ct., Alexandria, right off I-395 at the Duke Street exit. He is paid a commission by the insurer if you buy an annuity through him, and tells you what it is if you ask.