Trends in the gap between what fixed annuity contracts pay holders and what comparable bank certificates of deposit pay are moving in the annuity issuers' favor, according to AnnuityAdvantage.
The Medford, Oregon-based company runs an annuity sales website. It tracks 290 annuity contracts from 35 insurers.
The highest-paying 3-year contract now offers a 2.1% crediting rate, and the highest-paying 5-year contract offers a 3.15% crediting rate, the firm says.
That compares with top CD rates of 2% for a 3-year CD, and just 2.4% for a 5-year CD, according to BankRate.com.
