How Are The Annuity Rates Determined For My Fixed Annuity?

During the annuity accumulation period, your money (less any rate charges) earns interest rates that change from time to time.  Usually what these annuity rates will be is entirely up to the annuity insurance company.

Current Interest Annuity Rates

The current annuity rate is the rate the company decides to credit to your annuity contract at a particular time. The company will guarantee it will not change for some time period.

• The initial rate is an interest rate the insurance company may credit for a set period of time after you first buy your annuity.  The initial annuity rates in some contracts may be higher than it will be later.  This is often called a bonus rate. 
• The renewal rate is the rate credited by the company after the end of the set time period.  The anuity contract tells how the company will set the renewal rate, which may be tied to an external reference or index. 

Minimum Guaranteed Rate

The minimum guaranteed interest rate is the lowest rate your annuity will earn.  This rate is stated in the annuity contract.

Minimum Interest Rates

Some annuity contracts apply different interest rates to each premium you pay or to premiums you pay during different time periods. 

Other annuity contracts may have two or more accumulated values that fund different benefits options.  Theses accumulated values may use different interest rates.  You get only one of the accumulated values depending on which benefit you choose.