A set interest rate credited each year
Different from a MYGA, where the interest rate is guaranteed for the life of the policy. The Fixed annuity pays a predetermined rate in the first year, but then can fluctuate (usually decrease) each year thereafter. The first year rate is usually higher than the guaranteed multi-year rates in MYGAs, but if the rate drops significantly in the following years it may end up under performing compared to a MYGA. Unlike MYGAs, some Fixed annuities come with benefits like lifetime income riders.
We can help with rates, and selecting the very best annuity type for each client situation.