Have you been looking for a way to invest your money with relatively low risk, but with a higher return than the interest rates of CDs offered by banks and credit unions?

Look no further than fixed annuities. For decades, fixed annuities have provided a secure form of savings for millions of conservative investors on a tax-deferred basis. They are by far the simplest type of annuity contract and offer all of the benefits provided by any type of annuity except for the opportunity for market participation.

In a fixed annuity, you have the option to make either a lump sum contribution or a series of contributions to the contract, which in turn will pay a guaranteed rate of interest for a set period of time. These instruments resemble CDs in many respects: Both the principal and interest are guaranteed, and you’ll face a penalty for early withdrawal. As with all types of annuity contracts, there is a 10% early withdrawal penalty from the IRS for any distribution you take before you’re 59 1/2 years old.

Contact a Direct Service Insurance agent to discuss fixed annuities at 805-641-0422.