Who Are Annuities Best For? 
Tax deferred annuities are suitable for mid to long term savers or investors , those with high tax brackets or fixed interest rate seekers who desire more returns than traditional bank CDs . Interest rates are only on crediting method available with tax deferred annuities . Other crediting methods use indices in indexed annuities as well as separate sub accounts in variable annuities . To determine the crediting method most suitable for you , consider establishing a personal financial profile that includes a risk tolerance assessment before purchasing a tax deferred annuity . 