Fixed Annuities: Ballpark Rates Currently Available?

[Anonymous Coward 0]

I checked with OCTFCU, and they told me their fixed annuities are offering rates guaranteed up to five years of 7%.

 

Anybody know what is a good ballpark figure is for the current going rate on a fixed annuity product?

 

Thanks in advance...

[Vince 0]

I checked with OCTFCU, and they told me their fixed annuities are offering rates guaranteed up to five years of 7%.

 

Anybody know what is a good ballpark figure is for the current going rate on a fixed annuity product?

 

Thanks in advance...

 

Are you talking about the annuity offerings, or their 7% CD? They currently have a 457-only 5-year CD offered at 7%.

[Scottyd 0]

They do have a 457(b) that has a five year CD with an APY of 7%, not an annuity. There is no other company that comes close to this rate. They use it to buy TPA business, but if appropriate, its a good option for fixed money.

 

ScottyD

[Anonymous Coward 0]

 

Are you talking about the annuity offerings, or their 7% CD? They currently have a 457-only 5-year CD offered at 7%.

 

 

I talked with one of their reps on the phone, and she steered me to that rate on one of their pages. I don't plan to buy a fixed annuity, but I just want to know what sort of rates are typically available right now for those who do buy them. I suspect the rates would be a little better than what a CD would pay, but I don't actually know and was unable to find anything concrete on the Web.

[Vince 0]

Was this the page you were referred to?

 

http://www.octfcu.org/savingsfored/457b.asp

[Anonymous Coward 0]

Was this the page you were referred to?

 

http://www.octfcu.org/savingsfored/457b.asp

 

 

Yes, that's the one. The rep also mentioned they have some Nationwide products, but either wouldn't or couldn't quote me rates for that.

[Vince 0]

Ok, that is what both Scotty and I were referring to. That is an NCUA insured CD guaranteed for 5 years to pay 7% APY. (They also have shorter term rates.. 1 year and 3 year.) It is only available for use within 457 plans in participating school districts.

 

Regarding the Nationwide products, I believe there was a link on another thread referencing the OCTFCU plan. You can look up the ticker symbols for performance. (Mutual funds are never guaranteed, so you would never be quoted a rate for one.)

[BCinMI 0]

Not sure if you still wanted an answer to fixed annuities or not, but the answer is they are horrible right now. Most of them offer a great first year rate (4-7%) but then drop to around 3.5%. Taxation/deferral are different, but CD's and money markets are doing much better than that, and are liquid. Pros and Cons to everything!

[Anonymous Coward 0]

Not sure if you still wanted an answer to fixed annuities or not, but the answer is they are horrible right now. Most of them offer a great first year rate (4-7%) but then drop to around 3.5%. Taxation/deferral are different, but CD's and money markets are doing much better than that, and are liquid. Pros and Cons to everything!

 

Many thanks.