What Rate Of Return Are Annuities Paying? 
The rate of return of annuities really depends on what type of annuity you are talking about . Fixed Annuities have a set base rate similar to a CD , they pay a guaranteed rates of interest . If you are looking for a fixed annuity make sure you shop around some companies like Fidelity & Guaranty Life and Guaranty Income Life are raising their base rates . When you are looking at Index Annuities the insurance company gives you a guaranteed minimum interest rate and also a crediting strategy like the S&P 500 or something like that . Think of it this way there are two buckets of money , the first has your money with the guaranteed interest rate , the second has your money linked to the crediting strategy of the market . If the market goes up they will credit that bucket with interest -LRB- every company has different participation rates and caps -RRB- . If the market is down then that bucket will earn no interest . When ever you want to start drawing an income , the insurance company will see which bucket has the most money and that bucket will be used for income . If you work with a good broker , they have software that will show you what your investment will look like with all of the companies . Please let me know if I can help in any way . 