Compare Annuities vs. CDs

Comparison of Annuities with Certificates of Deposit

Increase the yield on your bank deposits by 45%: Those in a 31% tax bracket can increase the growth on their bank deposits by as much as 45% with an American Savings Life tax-deferred annuity.

Here's how:

If your bank account or CD earns $1,000 in annual interest income, you’ll receive a 1099 Form for $1,000 to report on your tax return. This means you’ll owe Uncle Sam $310. That $310 equals 31% of what you earned, but it equals 45% of the amount you get to keep!
By transferring your retirement savings to an American Savings Life tax-deferred annuity, you eliminate the 1099 and get to keep that $310 in interest to compound tax-deferred. It’s like borrowing from Uncle Sam at 0%. A 1099 form is only required when you choose to withdraw funds from your annuity.
Other key differences between Bank CD’s and Annuities are compared in the table below:

Comparison of an American Savings Life Annuity with a Certificate of Deposit (CD)

Features	Annuity	CD
Is it free from principal/market risk and price fluctuations?	Yes	Yes
Is it a "no load" investment where there are not administrative fees charged?	Yes	Yes
Is there a minimum interest rate guaranteed for the rest of your life?	Yes	No
Are interest earnings tax-deferred?	Yes	No
Are interest earnings reinvested automatically with no current income taxation?	Yes	No
Do you avoid any increase in tax liability on social security income?	Yes	No
Does it provide penalty free withdrawals of up to 10% of the account value per year?	Yes	No
Does it pay the proceeds penalty-free to a designated beneficiary upon the death of the owner?	Yes	No
Does the investment automatically avoid the expense and delay of probate?	Yes	No
Does it offer guaranteed lifetime income with tax deferral advantages?	Yes	No
Is the deposit guaranteed by the FDIC?	No	Yes
May withdrawals be made prior to age 59- 1/2 without being subject to the 10% IRS penalty tax?	No	Yes