One-Year Fixed Account Rate

The fixed rate of interest guaranteed by the insurance company for a one-year period.

Benefits

With a fixed-rate account, your rate of return is guaranteed for the contracted period. You receive this rate whether or not the stock market goes up, interest rates go down, or the insurance company has a profitable or losing year.

Origin

We collect fixed-account interest rates quarterly from the insurance companies.

For the Pros

Many policies offer a variety of fixed option choices. Guaranteed periods range from one month to 10 years, but a one-year period is the most common. Usually, the longer the time period, the higher the interest rate. The interest credited can either be sent annually or reinvested so you have a larger amount earning interest, a concept known as compound interest.