What a fixed annuity guarantees, and what it does not
A fixed annuity is an insurance contract. The insurer credits interest under the contract and backs its guarantees with its claims-paying ability.
Five terms to find in the contract
- The guaranteed minimum interest rate
- The current or declared rate and how long it lasts
- The surrender-charge schedule
- Any penalty-free withdrawal provision
- The available income-payment choices
Primary sources
Reviewed September 9, 2026