CD's, Fixed Annuities, and Fixed Indexed Annuities Share the Same Risk
What is the one big risk that Certificates of Deposit (CDs), fixed annuities, and fixed indexed annuities share? Interest-rate risk. For example, you could miss out on higher interest credited to your savings if current rates increase during the penalty period of the fixed interest-bearing vehicle of your choice. Risk in CDs With CDs, the risk is often short-lived because of the short-term nature of the vehicle. However, if you purchase a 12-month CD at 0.75 percent interest,