Annuities and traditional savings accounts are both considered low-risk investment options that earn interest. However, there are many differences, including fees, liquidity and the minimum amount of money required to open an account. Annuities and retirement accounts — such as 401(k) plans and Individual Retirement Accounts (IRAs) —feature tax-advantaged ways to save for retirement. However, IRAs and 401(k) place your money in investments, while annuities are insurance products that grow money in various ways. Annuities also generally have higher fees than retirement accounts, but without the same annual contribution limits.