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Fixed Annuities

Commerce Financial Advisors

Fixed Annuities

What is a fixed annuity?

A fixed annuity is designed to help investors plan for their retirement by offering a tax-deferred vehicle to encourage long-term savings. A fixed annuity credits a declared interest rate, which is reset annually after the initial guarantee period. A minimum interest rate is guaranteed for the life of the contract. Annuity earnings grow tax deferred until withdrawn, reducing your current taxes and allowing your money to grow faster.


  • Grow assets on a tax-deferred basis*
  • Fund it using pretax dollars in a qualified retirement account or with after-tax dollars in a non-qualified account
  • Guaranteed minimum interest rate regardless of market conditions
  • Flexible income options1
  • Access to your interest earnings immediately
  • Individual account features may allow access to your funds under certain conditions without penalty2
  • Contributions can be made as one lump sum or additional deposits can be made over time
  • No age limits at which you must begin receiving payments for non-qualified money
  • A variety of payout options available at maturity, including a guaranteed lifetime option
  • Account value passes to your named beneficiary free from the costs of probate in most cases


  • Fixed rate of return may not keep up with inflation
  • Substantial penalties may apply for early withdrawal
  • Guaranteed life income payments cannot be altered once selected


  • Tax Considerations

    Earnings accrue tax deferred* 

  • Eligibility Limits

    No Limits

  • Income Limits

    No limits

  • Annual Contribution Limits

    No contribution limit if money is non-qualified


  1. Withdrawals of earnings are subject to ordinary income tax. In addition, a federal 10% penalty tax may apply to withdrawals taken prior to age 59½, and surrender charges may apply.

  2. The availability of withdrawal features without penalty will vary by product.

*Consult your tax or legal advisor for tax planning relating to your current situation.

† To send an email that contains confidential information, please visit the Secure Message Center where there are additional instructions about whether to use Secure Email or Online Banking messaging.

The information provided on this website is not meant as a recommendation or endorsement of any specific security or strategy. An individual’s situation can vary; therefore the information provided above should be relied upon only when coordinated with individual professional advice.

Mutual funds, annuities, and other investment products:

Not FDIC-insured

May lose value

No bank guarantee

Security and Advisory services provided through Commerce Brokerage Services, Inc., member FINRA, SIPC, and a registered investment advisor. Insurance products are offered through Commerce Insurance Services, Inc. Both entities are subsidiaries of Commerce Bank.

Investments in securities and insurance products are Not FDIC insured; Not Bank-Guaranteed and May Lose Value.

This site is not intended for use by, or to provide any information to, investors in any state where Commerce Brokerage Services, Inc. is not registered or in any jurisdiction outside the United States of America where such use would be prohibited or otherwise regulated. Nothing on this web site shall be considered a solicitation to buy or an offer to sell a security to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.