A Fixed, Deferred Annuities Rate Changes Frequently
So you have found the perfect fixed, deferred annuity. The annuity that you have chosen offers a competitive rate, flexibility, an annuity term you can live with and, of course, excellent tax-deferral benefits. With certain annuities time is of the essence when you decide to buy. An annuities rate for a fixed, deferred annuity changes frequently. It’s important to be cautious when deciding to make such a large financial move as buying an annuity, but it does not serve you to drag your feet once you decide to buy, as well.
Annuity-issuing insurance companies often change interest rates due to prevailing market conditions or to attract new customers. The annuities rate you see today might not be available next month or even next week. In many cases it does not pay to wait around for a better rate; a rate may go up in the near future, but it is just as likely that it will go down, too. Annuities rates fluctuate, so grab a good rate when you see it.
An annuity is a contract between you and an insurance company. In return for your lump sum payment, the insurance company agrees to pay you a fixed rate. This annuities rate is your interest, much like a savings account. However, unlike a savings account your money – original principal plus interest earnings – is locked away for the annuity’s term. A fixed, deferred annuity term can be anywhere from one year to ten years. The annuities rate usually depends on the length of the term. Generally, the longer the term, the higher rate an insurance company pays on an annuity.
Fixed, deferred annuities are paying great rates and are a strong savings tool for those planning for retirement. Annuities rates can be found easily by calling 1-877-519-8599 or by visiting http://www.fixedannuitydirect.com.