High Interest Annuities

Many investors look for high interest annuities, just like they look for high interest bonds. High interest annuities are usually fixed annuities or combination of different types of annuities. In uncertain equity market, especially, people have sought refuge and peace of mind in the high interest annuities.

What are high interest annuities?

High interest annuities are fixed annuities with high interest rates, paying higher amount to the annuitant each pay period, usually monthly.

The benefits of investing in high interest annuities

Investing in high interest annuities has many benefits especially if you are an investor with low risk tolerance and don't want to risk your money investing in stocks or bonds. High interest annuities guarantee a fixed rate of return no matter what the market does. High interest annuities are not considered securities because investors are not assuming any market risks, the insurance company does.

When an investor purchases a high interest annuity, the money is invested in a general account by the insurance company. The general account is managed by the insurance company and the investor wouldn't even see what investments are being invested in. The insurance company assumes the investment risks and in return for the invested money, guarantee a fixed rate of return to the investor. Of course, the higher the interest rates, the more attractive the annuities are.

How to find high interest annuities?

Finding high interest annuities is like finding high interest bonds or high interest CDs (certificates of deposit). Each life insurance company sets their own interest rates for annuities. To find out the interest rates for each company's annuities, you need to inquire with each company individually. The good news is that, there are not many A-rated, trustworthy life insurance companies that you should inquire about high interest annuities so you will be able to find out relatively fast which annuities and which life insurance companies you want to invest in.