What Do Annuities Pay Out?

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   Steve Savant

   Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona

   There are three basic crediting methods used in tax deferred annuities: fixed interest rate crediting, indexed crediting and separate sub accounts crediting and debiting with equity and bond investments. Fixed interest rate crediting is generally the annuity most compared to bank CDs. Fixed annuity interest rates generally credit more than bank CD rates and accumulate tax deferred.

   Answered on August 22, 2013

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