What Is The Difference Between Fixed And Variable Annuities? 
Non-qualified tax deferred annuities have three crediting methods : fixed interest rate crediting , indice crediting or fixed interest rate crediting , indice crediting or separate subaccounts using equity and bond instruments . Fixed interest rate annuities guarantee a declared rate for a specific period like 5 , 7 or 10 years . A variable annuity is a security and an insurance product that offers a general account crediting an interest rate that can change at the policy anniversary and separate subaccounts using equity and bond instruments that can credit or debit , i.e. lose money . A personal financial profile needs to be conducted , including risk tolerance assessment to determine product suitability . 