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If you think you get the same return or features on every fixed annuity then you’re in for a surprise. When you take a few minutes to get annuity quotes you’ll find they often vary dramatically. That’s because some annuities are better for certain situations than others are. It all depends on how you use it and an annuity quote helps find the one best for you.

Each annuity offers something different for the consumer. Rate of return is often the most interesting for many but that too depends on how you use the product. Checking the rates of several companies for the way you use the annuity simply makes sense. The easiest method is to use an annuity quote site that offers annuity quotes from several companies at one time.

People that want a fixed contract to act like a tax-deferred account but don’t intend on taking the money in payments need to look for different types of benefits than the person that simply wants a monthly, quarterly or annual payment. The annuities that simply set and grow are deferred annuities. This means you defer the payment to a later date.

Deferred annuities offer the option of annuitizing, taking systematic payments from the contract, at any time. However, most people that use the product in this manner normally like the tax-deferred growth and the ability to put in money without constantly having to renew the contract. This type of consumer needs different features than the person that wants immediate annuitization. They need to check for the highest immediate rate, rate guarantee and other features like surrender charges.

The immediate rate is the interest the company pays for a specific guaranteed length of time. Sometimes the offer is simply a one-year guarantee, other times it’s longer. Once that length of time expires, the company has the right to change the rate as to any amount equal to or higher than the guaranteed rate of the policy. To find the highest annuity quote, look for a website that offers annuity quotes from many different companies.

Surrender fees are important if you want to take a lump sum distribution. A surrender fee is the percentage the company charges when you take funds before a specific date. Most of the time, the surrender charge is between four and seven years. However, the penalty phase may be as short as one year or never end unless you annuitize. This makes a huge difference in your return if you select a contract not appropriate for your needs.

Just because you’re within the period of surrender fees, it doesn’t mean that the money is unavailable if you have an emergency. Like a CD, you can remove all your interest without penalties on most contracts. Unlike a CD, however, most companies allow at least a ten percent penalty free withdrawal once a year or at least once in the contracts lifetime. Look for the penalty free withdrawal ability on the annuity quotes. It means you don’t have to keep a lot of emergency money in a low interest taxed savings account.

If you’re very young, you might not want to consider using a CD as a vehicle for savings. Just like a Roth or Traditional IRA, there’s a 10 percent penalty if you remove the funds before you’re 59 . Of course, if you plan to retire early and take systematic periodic payments, there’s no penalty as long as you take the payments until you’re 59 or at least for five years.

For those that want an immediate payment, the best method to find the highest payout is through securing annuity quotes. Just because the product offers the highest rate of return for deferred money, doesn’t mean it offers the highest payment. That’s a different interest rate. An annuity quote gives you the exact amount of money you’ll receive. The difference could be thousands of dollars over the lifetime of payments.

John C. Ryan is a writer, focused on educating investors on annuity insurance. Buying an annuity is a major decision. Before making that decision you should properly assess all the options available through multiple annuity quotes . To read more from John, contact us and talk to an advisor about the best annuity quote for you.