What Is A Fixed Annuity?

During the accumulation period of a fixed deferred annuity, your money (less any applicable charges) earns interest at rates set by the insurance company or in a way spelled out in the annuity contract.  The company guarantees that it will pay no less than a minimum rate of interest.  During the payout period, the amount of each income payment to you is generally set when the payments start and will not change.