Fixed annuities are the direct CD alternative. Their similarities are high-yield savings products that earn interest, protect your investment, and avoid probate if set correctly. The difference between regular CDs and fixed annuities is that the CD's interest is taxed annually. In contrast, a fixed annuity offers tax-deferred growth; these savings vehicles do not provide liquidity to withdraw income, and fixed annuities do. Finally, a fixed annuity can provide a guaranteed income for life, and a CD can not. The minimum deposit to open is much lower with certificates as well.