Fixed Set Rate Annuities

With guaranteed level “set rate” fixed annuities, the annual growth interest rate is set and is known, right up front, when the owner purchases a “set rate” fixed annuity. This level “set rate” is very similar, as if you were to go into a bank and ask the teller how much interest are you paying for a five-year CD. The bank would tell you the interest rate upfront and then you would know how much growth you’re going to get at the end of that five year maturity term. With a “set rate” fixed annuity, the interest rate is known and set right at the beginning.

With certain annuity types, like “SET RATE” fixed annuities, your interest rate is known and set, right at the beginning, and is locked-in for a duration.