1. 1492 POINTS
    Jeff Davis
    Insurance Advisor, Lordship Insurance Services, California
    It will all depend. Any vehicle that pays you an interest rate is tied to a certain index. The interest rate will change according to that index. Annuities set their rates based on what Insurance companies feel is a reasonable rate of return based on their investment portfolio. These rates are typically fixed for a certain period of time and traditionally have been better than what banks and CD's have been able to offer. When shopping for an annuity to purchase check out the Insurance companies you wish to invest in and make a purchase based on what you like about the company and their investment strategies.
    Answered on September 24, 2013
  2. 1000 POINTS
    Tyler Maddox
    Retirement Specialist, Cambridge Financial Group, Greenville, SC
    Annuity Rates are directly tied to the Fed Funds Rate & to 10 Year Treasury Rates. Both of these are at historical lows at the moment. Most financial experts claim that interest rates should rise over the next 5 years. If this happens, Annuity Rates will rise as along with them.
    Answered on September 27, 2013
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