All About Annuities – Annuity Rates

Posted by admin | April 15, 2009 .

In the recent times of recession, people all over the world have lost a considerable amount of the money they invested. Global markets have booked record breaking loss of investor wealth.

This has propelled people to look for alternative options of investing their money into. For many people, fixed annuity seems to be a much safer and economical options as it keeps the investor money secure along with ensuring a timely repayment of the invested amount.

In a fixed annuity, an individual has to pay a specific amount of money at once to an ‘insurance company’. The company then makes sure that the individual is awarded his share of monthly payment in a regular manner. The payment is made depending upon the amount of money invested and the Annuity rate of the company.

Rate of interest of annuities can range from 5 – 7%, which is a very high rate as compared to that offered by ‘fixed’ deposits and other schemes. Although, the individual is guaranteed of receiving a guaranteed amount on a monthly basis, once the amount is invested he cannot ask back for it in lieu of a specific payment. This is a very significant drawback, in case; a large amount of money has been invested.

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