Certificate of Deposit Annuity (CD Annuity)

Published: | Updated: December 24, 2017

Definition - What does Certificate of Deposit Annuity (CD Annuity) mean?

A Certificate of Deposit Annuity (CD Annuity) is a financial instrument that has features of both a traditional CD and an annuity. Life insurance policyholders can use CD annuities as a way of making money or setting themselves up for retirement.

Insuranceopedia explains Certificate of Deposit Annuity (CD Annuity)

CD annuities are like Certificates of Deposit insofar as there are penalties for cancelling them and they offer a fixed interest rate for a certain amount of time. They are, however, like annuities in that they offer fixed payments after the policyholder has paid into them for a certain amount of time.


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