Gainbridge FastBreak Annuity 2024 Review
The Gainbridge FastBreak Annuity offers an intriguing option for individuals looking to secure a steady return on their savings with a product similar to a high-yield certificate of deposit (CD). This annuity is designed to cater to savers who have a medium- to long-term savings outlook, providing a balance between attractive interest rates and liquidity through annual withdrawal options.
The FastBreak Annuity by Gainbridge stands out as a favorable choice for savers seeking a stable and predictable return on their investments. Comparable to a high-yield CD, this annuity is ideal for those with a medium- to long-term savings strategy because of the 3- to 10-year contract terms. One of its key benefits is the ability to make partial withdrawals each year, which can help mitigate concerns about liquidity. This feature makes the FastBreak Annuity an appealing alternative for savers who want both growth potential and some level of access to their funds.
Gainbridge FastBreak Annuity Pros & Cons
Lock In The Highest CD Rates Before Interest Rates Crash Again
The Federal Reserve plans to continue dropping interest rates. To ensure that you continue to generate reliable returns for years to come, consider a CD now to lock in the highest available rates:
Potential Returns
The Gainbridge FastBreak Annuity offers competitive interest rates that are locked in for the duration of the term. This guarantees a fixed rate of return, providing predictability and security for savers. The rates are designed to be higher than those offered by traditional savings accounts and CDs, making this annuity an attractive option for those looking to maximize their savings.
Terms
When you purchase the Gainbridge FastBreak Annuity, you have the option of choosing a contract year that ranges from 3 to 10 years, which covers medium- to long-term financial timelines. Few banks offer CDs with such long maturity terms of 10 years--even fewer can tout such a high rate of return over that time period.
However, it is clearly not a wise option for people who have a shorter savings outlook or those who anticipate a large withdrawal in the near future.
Fees
The Gainbridge FastBreak Annuity does not have any sales charges or administrative fees. There are no recurring account maintenance fees.
The most notable fee is the withdrawal charge, which applies when you make a withdrawal (or surrender the annuity completely) in excess of the designed free withdrawal amount allowed per year (equal to 10 percent of the annuity's market value). This withdrawal charge ranges from 1 to 5 percent of the excess withdrawal amount (varies based on the contract term and the contract year that the withdrawal is made).
Gainbridge FastBreak Annuity Withdrawal Charges
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 |
|---|---|---|---|---|---|---|---|---|---|---|
| 3-year period | 5% | 5% | 4% | |||||||
| 4-year period | 5% | 5% | 4% | 3% | ||||||
| 5-year period | 5% | 5% | 4% | 3% | 2% | |||||
| 6-year period | 5% | 5% | 4% | 3% | 2% | 1% | ||||
| 7-year period | 5% | 5% | 5% | 4% | 3% | 2% | 1% | |||
| 8-year period | 5% | 5% | 5% | 5% | 4% | 3% | 2% | 1% | ||
| 9-year period | 5% | 5% | 5% | 5% | 5% | 4% | 3% | 2% | 1% | |
| 10-year period | 5% | 5% | 5% | 5% | 5% | 4% | 3% | 2% | 1% | 1% |
Account Management
Managing the FastBreak Annuity is straightforward, with options for online account access. Savers can view their account details, monitor interest accrual, and manage withdrawals through an easy-to-navigate online portal. The ability to handle account management digitally adds convenience and accessibility for users.
Native mobile apps are not available.
FAQs
Are there tax concerns with the FastBreak Annuity?
Yes, the interest earned on the FastBreak Annuity is taxed as interest income--a Form-1099 will be sent out to you every year.
What happens if I need to cancel my annuity early?
Surrenderring your annuity or making withdrawals outside the designated annual period can result in penalties. It’s important to plan your investments and withdrawals carefully to avoid these charges and maximize the benefits of the annuity.
How secure is the FastBreak Annuity?
The FastBreak Annuity is backed by Guggenheim Life and Annuity Company, a financially stable and reputable insurance provider. This backing provides a high level of security for your investment, ensuring that your funds are protected. However, because Gainbridge is not a bank, the annuity is not covered by FDIC deposit insurance.
