Where Are Fixed Annuities Invested? 
An insurance company invests deposits for fixed annuities into their General Account . The General Account is made up of mostly US Treasuries , along with Corporate Bonds , public debt issues , real estate , & some equities . The exact ratio and makeup of the General Account varies from company to company . But for the consumer , what matters is the interest rate of the annuity and what that particular product is offering . As long as the insurance company is well rated by an independent rating firm , the makeup of the General Account has no meaningful impact on the policy owner . It is important to know that insurance companies are required to invest enough money into treasuries to be able to cover all guarantees promised in contracts they issue . So any guarantee they have made is mostly backed by treasuries . 