Monday, March 5, 2012

Fixed Annuity

In these turbulent financial times certificate of deposit are at a all-time low causing people to take a closer look at annuities.

What is a fixed annuity? Also referred to as a guarantee annuity. This is simply an annuity that pays a guaranteed rate of interest. The insurance company will be the one to determine the interest rate that they will offer and guarantee. An example of this would be 2 1/2% over a six-year period. The principal and the interest are both guarantee by the insurance company this is the safest type of annuity.

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