What is CD Busters? | CD Busters

How much is your CD costing you?

For conservative investors, bank certificates of deposit are a time-tested favorite for providing income. But more and more people are discovering that fixed annuities offer similar terms with much better rates.
CD Busters offers a smart alternative for turning your low interest-bearing Certificates of Deposit into higher earnings guaranteed. Our products pay guaranteed rates of interest; provide tax-deferred growth; and your principal is protected.

CD Busters Annuities Make a Difference

Our fixed annuity programs offer you significant benefits:

Safety of Principal

CD Busters products are backed by the financial strength of our annuity carrier as required by state law.

Fixed Rates = Peace of Mind

Our range of products offer a guaranteed rate of interest locked in for an initial period, and also offer a guaranteed minimum interest rate, regardless of market volatility. Some of our fixed rate annuities not only offer a guaranteed minimum interest rate but also provide a bonus when the market is high.

Long-term Accumulation

The biggest advantages our annuities offer is that they allow you to sock away a larger amount of cash and defer paying taxes. That allows you to put away more money for retirement, and is particularly useful for those that are closest to retirement age and need to catch up.

Tax Savings

Earnings on CDs are taxable in the year the interest is earned, even if you don’t take the money out. With CD Busters range of products, earnings accumulate tax-deferred and are not treated as taxable income until they are withdrawn, which gives you a measure of control over when you pay taxes. When saving for the long term, it makes good investment sense to have the power of tax deferral on your side.

Liquidity

With CD Busters, you still have access to your money should the need arise. Depending on the product you choose, withdrawals during the first several years may be subject to surrender charges. Once the surrender charge period has expired, you can generally access your money at any time without surrender penalties. A portion of your annuity value is available to you every year without penalty during the surrender period. Withdrawals may be taxable and, if they are made prior to age 59½, may be subject to a 10% penalty tax.

Distribution Options at Maturity

You may elect to withdraw your money in a lump sum, or create your own pension like withdrawl program by selecting a life income option. Whatever you choose, you have a variety of distribution options that provide you with a flow of income you cannot outlive, including letting your funds accumulate until a need arises.