What is a fixed annuity?

A fixed annuity is a contract with an insurance company that credits a set interest rate on your money and can provide an income stream for life. Your principal is protected from market losses. Any guarantees are subject to the claims-paying ability of the issuing insurance company and are not FDIC insured.

How does a fixed-indexed annuity work?

A fixed-indexed annuity credits interest based on the performance of a market index like the S&P 500, but your principal is not directly invested in the market. A 0% floor means index declines do not reduce your principal, while gains are credited up to a cap. Principal protection and any guarantees are subject to the claims-paying ability of the issuing insurance company and are not FDIC insured.

How much does it cost to work with Tim Hartle?

There is no out-of-pocket cost to you. Tim is compensated through commissions paid by the insurance carriers, not by you directly. The consultation is completely free with no obligation.

Is my money safe in an annuity?

Fixed and fixed-indexed annuities protect your principal from market losses. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Tim only works with highly rated carriers rated A- or better.

Can I access my money if I need it?

Most fixed annuities allow penalty-free withdrawals of up to 10% of the account value per year. Surrender charges may apply to withdrawals beyond this amount during the surrender charge period, which typically lasts 5-10 years.

I inherited an annuity — what should I do?

Inherited annuities have specific IRS rules about required distributions, tax treatment, and deadlines depending on your relationship to the original owner. Making the wrong choice can cost thousands in unnecessary taxes. Tim Hartle offers a free inherited annuity review to help you understand all your options before making any decisions. Call (727) 692-5866.

My annuity broker retired or is no longer available — what do I do?

If your original broker has retired, moved, or left the business, you are not stuck. You can work with a new independent advisor who can review your existing policy, explain what you have, and help you make the most of it. Tim Hartle provides free policy reviews for clients in this situation throughout the Tampa Bay area.

Can someone review my existing annuity for free?

Yes. Tim Hartle offers completely free annuity policy reviews for residents of Pinellas, Pasco, and Hillsborough County. Whether you inherited a policy, lost touch with your broker, or simply haven't reviewed your annuity in years, Tim will go through your policy with you at no cost and no obligation. Call (727) 692-5866 to schedule.

Is a fixed annuity better than a CD?

Neither is universally better. Annuities offer tax deferral and lifetime income options; CDs offer FDIC insurance and simplicity. The right choice depends on your goals.

Which is safer, a CD or a fixed annuity?

CDs are FDIC insured up to limits. Fixed annuity guarantees rely on the issuing insurer's claims-paying ability and are not FDIC insured.

Are annuity taxes really lower?

Annuity growth is tax-deferred until withdrawal, while CD interest is taxed each year. Deferral can help, but withdrawals are eventually taxed as ordinary income.

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Fixed Annuities Cornerstone Guide

Fixed Annuity vs CD: Which Is Right for You?

Both offer fixed rates and principal protection — but the differences in taxes and who backs them matter. Here's the comparison.

Updated June 8, 2026 8 min readFixed Annuities

Original infographic in development: Fixed Annuity vs CD: Which Is Right for You?

Fixed annuities and certificates of deposit (CDs) are often compared because both offer a guaranteed rate and principal protection. But they work differently in important ways.

This guide compares them side by side so you can see which fits your goals.

How each one works

The basic structure of a CD versus a fixed annuity.

Taxes: a key difference

How CD interest is taxed annually while annuity growth is tax-deferred.

Liquidity and access

Comparing early-withdrawal penalties and free-withdrawal provisions.

Safety and who backs the guarantee

FDIC insurance on CDs versus the insurer's claims-paying ability on annuities.

Which fits your situation

Matching the tool to your time horizon and goals.

This guide is for general educational purposes only and is not financial, tax, or legal advice. Tim Hartle is an independent insurance professional. Annuity guarantees are subject to the claims-paying ability of the issuing insurance company and are not FDIC insured. Rules and product features vary by situation and by state. Please consult a qualified advisor about your own circumstances.

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