By Donn J. Sinclair, MBA November 12, 2019
Fixed annuities pay guaranteed rates of interest and in many cases higher interest rates than those available from other financial institutions. Fixed annuities are the issued by insurance companies and are essentially fixed rate savings/investments from an insurance company.
You can select either a deferred or immediate fixed annuity. The deferred fixed annuity normally allows your savings to grow tax-deferred while accumulating regular rates of interest. The immediate annuity usually provides you with regular fixed payments which are partially determined by your age, the size of your annuity purchase, the payment schedule selected, and the interest rate for your annuity.