If your certificate of deposit (CD) has recently matured—or will in the coming weeks—it’s time to make a strategic move. Across West Michigan, from Grand Rapids to Holland, Muskegon, Lansing, and Kalamazoo, many savers are discovering that Fixed Indexed Annuities (FIAs) and Multi-Year Guaranteed Annuities (MYGAs) can offer better yields, stronger guarantees, and valuable tax advantages compared to renewing a CD at today’s lower rates.
Whether you’re planning for retirement or simply trying to make your savings work harder, understanding your post-CD options can help you protect what you’ve earned while setting yourself up for more predictable growth.
Why Now Is the Time to Re-Evaluate Your CD Strategy
When your CD matures, your bank gives you only a short grace period—typically about 7 to 10 days—to decide what to do next. If you don’t act, it often renews automatically, sometimes at a much lower interest rate than before.
As interest rates begin to decline nationwide, this fall presents a crucial opportunity for West Michigan investors to review their options and secure better returns before yields drop further.
Fixed Indexed Annuities: Market-Linked Growth Without Market Risk
A Fixed Indexed Annuity (FIA) is an attractive alternative for savers looking to balance growth potential with principal protection. FIAs earn interest based on the performance of a market index, like the S&P 500®, but your money isn’t directly invested in the market—so it’s never at risk from downturns.
Benefits of Fixed Indexed Annuities
Protection from market losses — Your principal remains secure.
Upside potential — Earn interest linked to a market index’s performance.
Guaranteed minimum growth — Even in flat years, you still earn.
Income flexibility — Turn your annuity into steady income when you retire.
For residents across Grand Rapids, Zeeland, and the Lakeshore, FIAs can be a strong next step—helping you grow savings safely while preparing for future income needs.
Multi-Year Guaranteed Annuities: Competitive Fixed Rates and Tax Deferral
If you prefer the predictability of a fixed rate, a Multi-Year Guaranteed Annuity (MYGA) offers the same safety as a CD—but often with higher guaranteed interest rates and tax-deferred growth.
Benefits of MYGAs
- Higher guaranteed rates — MYGAs typically outperform local CD rates.
- Tax-deferred compounding — Interest grows faster since it’s not taxed annually.
- Principal protection — Your money remains safe and stable.
- Flexible maturity options — Renew, withdraw, or create retirement income when your term ends.
For example, while many Michigan CDs are renewing around 3%, comparable MYGAs are still paying around 5% or higher, depending on the term. That difference can make a major impact over time—especially for retirees seeking stable, long-term returns.
Why West Michigan Investors Are Acting Now
With interest rates beginning to trend downward, waiting too long could mean missing your chance to lock in higher guaranteed rates. By repositioning your maturing CD funds into an FIA or MYGA, you can:
- Secure stronger, longer-term returns
- Defer taxes to maximize your earnings potential
- Protect your principal in an uncertain market
- Align your savings with your retirement goals
For West Michigan residents focused on safe, predictable growth, these strategies can play a key role in a well-balanced financial plan.
Take Control of Your CD Maturity
If your CD has recently matured—or will soon—don’t let it automatically roll into another low-yield account. Instead, explore how an annuity strategy can help your savings work smarter for you.
At Jacobs Financial Services, we’ve helped hundreds of West Michigan clients—from Grand Rapids to Holland and Muskegon—transition from CDs into annuities that offer guaranteed growth, tax efficiency, and lasting retirement income.
