How Do Annuities Earn Money? 
There are three basic types of crediting methods for non-qualified deferred annuities : fixed interest rate crediting , indices crediting and separate sub accounts using equities and bonds investments . The fixed interest rate crediting and indices crediting methods are used in non-security savings products . Separate sub accounts using equities and bonds investments may credit or debit from a variable annuity , which is a security investment product , based on its market performance . Variable annuities can lose money . 