The interest rates that an annuity earns largely hinge on two things: the type of annuity you have, and how the annuity is credited interest. Some annuities declare the interest rate ahead of time.
Other annuities earn interest based on ups or downs in an index, like the S&P 500 price index. Most annuities come with compounding interest. However, you may come across some contracts that offer simple interest growth.
If you are researching the potential for typical annuity interest rates, it’s important to know how annuities can differ by growth potential. Here's some crucial information to consider as you think through your potential options.
