Fixed Deferred Annuity (FDA)

(Also known as a Multi-Year Guaranteed Annuity or Fixed Rate Annuity.) Very similar to a Certificate of Deposit (CD) sold by banks, FDAs are sold by insurance companies. Like CDs, they offer a low-risk, fixed return over a specified period of time. But, as retirement savings vehicles, they also offer tax-deferred interest growth and can be annuitized to create an income stream at the end of the contract.