The Medford, Oregon-based company runs an annuity sales website. It tracks 290 annuity contracts from 35 insurers.
The highest-paying 3-year contract now offers a 2.1% crediting rate, and the highest-paying 5-year contract offers a 3.15% crediting rate, the firm says.
That compares with top CD rates of 2% for a 3-year CD, and just 2.4% for a 5-year CD, according to BankRate.com.
AnnuityAdvantage says, in a discussion of the rate comparison aimed at consumers, that the full gap in performance is much bigger than the top-rate figures suggest.
The firm points out that a consumer who holds a CD outside a retirement account must pay taxes on interest earnings every year.
A consumer who holds an annuity can defer paying taxes on interest until the consumer starts to take withdrawals, the firm says.
— Read Annuity Sales May Be Starting to Firm Up: Wink on ThinkAdvisor.
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