Early withdrawal penalties: CD vs Annuities?

Question

just a range would suffice

Answer 1

Usually three months interest

Answer 2

Annuities usually have higher fees unless you hold them the requisite time period.

With a CD you can sometimes borrow against it to avoid the penalty.  That is only a good idea if it is near maturity.

Answer 3

This depends on the bank and even more so on the insurance company and the product as far as annuities go, but I can sure ballpark it for you.

On CDs the penalty usually takes the form of 90 days to as many as 365 days of simple interest depending on the term. The longer the term the steeper the penalty.

Annuities can vary greatly, but a basic fixed annuities (which are closest to CDs) like the ones I offer at a bank generally start in the neighborhood of 8% of the contract value and decrease to zero over the course of the contract. However with most fixed annuities, you don't ever lose principal, so the most you can lose is the accrued interest. E-mail me if you have more specific questions. Hope this helped.

Answer 4

Depends on the contracts.