CD alternatives · Gulf Coast Alabama
Before you roll over your CD, compare your options.
If your CD is about to mature, a free review can show how renewing compares with other conservative choices, including fixed annuities, so you can make an informed decision.
Schedule my free CD review (251) 206-7074No cost · No obligation · Advising since 1997
Why compare
A CD is a good tool. It is not the only one.
CDs are a reliable, FDIC-insured way to earn interest on short-term savings. If your time frame is longer, or you want tax deferral or future income, it can be worth comparing other conservative options before you renew. Each has trade-offs, and we cover both sides.
- Different ways to earn interestFixed annuities pay a set rate for a set period. Fixed indexed annuities credit interest linked to a market index, within limits set by the insurer. Rates vary and may be higher or lower than CD rates.
- Tax-deferred growthInterest in an annuity is not taxed until you withdraw it. Withdrawals of earnings are taxed as ordinary income, and a 10% IRS penalty may apply before age 59½.
- Protection from market lossFixed and fixed indexed annuities do not lose value because of market declines. That guarantee comes from the insurance company, not the FDIC.
- A longer commitmentAnnuities are designed for money you will not need for several years. Surrender charges apply to early withdrawals above the penalty-free amount.
- No-pressure guidanceDr. Leon provides a complimentary review with no obligation. If renewing your CD is the better choice, he will tell you so.
Schedule your free CD review
Complete the form and we will contact you to schedule a time.
By submitting this form, you agree that Grove Financial Group, Inc. may contact you by phone, email and text message about your inquiry. Message frequency varies. Message and data rates may apply. Reply STOP to opt out or HELP for help. Consent is not a condition of any purchase or service. See our Privacy Policy and SMS Terms.
How it works
Your free CD review in three steps
Send your request
Complete the short form or call (251) 206-7074. We will reach out within one business day to set a time.
Your review
Dr. Leon reviews your CD details, your goals and your time frame, and explains the options that fit, including what each one costs and limits.
You decide
You leave with a clear picture of your choices. There is no obligation to do anything.
Side by side
Bank CDs and fixed annuities compared
A general comparison. Actual terms depend on the bank, the insurer and the specific product.
| Feature | Bank CD | Fixed or fixed indexed annuity |
|---|---|---|
| Principal protection | FDIC insured up to applicable limits, generally $250,000 per depositor, per bank | Backed by the claims-paying ability of the issuing insurance company. Not FDIC insured |
| Interest | Fixed rate set at purchase | Fixed rate (MYGA) or interest linked to a market index, limited by caps or participation rates, with a floor that is typically 0% |
| Tax treatment | Interest taxed as ordinary income each year | Tax-deferred until withdrawn, then taxed as ordinary income. A 10% IRS penalty may apply before age 59 1/2 |
| Access to money | Early withdrawal penalty during the term | Surrender charges during the surrender period, which often runs several years. Many contracts allow limited penalty-free withdrawals each year |
| Typical time frame | Months to a few years | Several years or longer |
| Income options | Interest payments or lump sum at maturity | Can be converted to income, and optional lifetime income riders are available on some products, usually for an annual fee |
| At death | Passes by payable-on-death designation, or through your estate | Generally passes to a named beneficiary outside probate |
Why Grove Financial Group
Who you will be working with
Advising since 1997
Dr. Leon Grove, ChFC®, RICP®, has worked with Gulf Coast families for nearly three decades.
Service-disabled veteran
Dr. Leon served fourteen years in the United States Marine Corps.
Former finance professor
He explains financial concepts in plain language so you can make your own decision.
In person or virtual
Meet in Mobile, AL by appointment, or connect by phone or video.
Know your options before your CD renews
Book a complimentary, no-obligation CD review with Dr. Leon. It takes about 30 minutes.
Book my free CD reviewOr call or text (251) 206-7074