While this has been previously mentioned, some people might still be unclear on what the accumulation phase is. This is the period of time during which funds are building through interest or deposits. Think of this as the transition phase when the caterpillar is inside a chrysalis or cocoon. And, the annuity is the stunning butterfly that emerges.
It’s during the accumulation phase of a fixed annuity that the current interest rate becomes applied. This will be the rate that’s guaranteed for that specific period of time.
What happens at the end of the set time period? Sometimes another interest rate, which is appropriately known as the renewal rate, is applied. Don’t worry. You won’t be caught off guard with this since your contract will contain the details on the establishment of the renewal rate.
At Due, we have a fixed annuity rate of 1% (Free Account) or 3% (Pro Account at $10/month) which you can choose. This is our current fixed annuity rates.
- How Does a Fixed Annuity Work?
- Always refer to your contract
- The Benefits and Criticisms of Fixed Annuities
- Benefits of Fixed Annuities
- The drawbacks of fixed annuities
- Current Fixed Annuity Rates
- Are Fixed Annuities Guaranteed?
- The Differences Between Fixed and Indexed Annuities
- Fixed Annuity Calculator
- Buying a Fixed Annuity