The CD-type annuity was created to assist with the situation of insurers giving assurances
to carry on paying an elevated rate of interest after the guarantee period. Rates were declining and investors were not receiving what they estimated, so they paid an early termination penalty to get out of the contract. But that doesn't mean that CD-type annuities are not safer or smarter than the return that you get with a CD that you would obtain from a bank. So Cd type annuities can be an advantage to investors particularly if they are older than 59 years old. They can continue to invest money and let it grow tax deferred, and the rates of return will be higher than those of a bank CD.