Is An Index Annuity Fixed Or Variable? 
That is a great question ! An annuity can be really sorted out into two types - A variable annuity , which has an interest rate that can go all over the board ; and a fixed annuity , which pays a specified rate of interest . An indexed annuity is really a fixed annuity , as each interest crediting strategy clearly defines the interest that it will pay , depending upon the market it is tied to 's performance . While the interest paid can vary based upon that performance , it is generally defined by caps , participation rates , and floors , so you know what it will pay within those parameters . I hope that helps , thanks for asking ! 