FIA Market Data (2021-2025)

5-7%*
Typical Credited Rate Range
Varies by term & market conditions
7-11%
Current Cap Rates
S&P 500 Annual P2P
73.8%
Positive Return Years
Historical analysis
$286B
Total Fixed Annuity Sales 2023
Record year (LIMRA)
5-Year
Short Term
S&P 500 Cap Rate 8.50%
Avg. Credited Rate 5.0%
Surrender Charge (Yr 1) 7%
Best for near-term goals. Lower rates but more flexibility.
7-Year
Most Popular
S&P 500 Cap Rate 9.50%
Avg. Credited Rate 5.75%
Surrender Charge (Yr 1) 8%
Balanced option. Good rates with moderate commitment.
10-Year
Popular
S&P 500 Cap Rate 10.50%
Avg. Credited Rate 6.25%
Surrender Charge (Yr 1) 9%
Strong growth potential with reasonable commitment.
15-Year
Highest Rates
S&P 500 Cap Rate 11.00%
Avg. Credited Rate 6.75%
Surrender Charge (Yr 1) 10%
Maximum growth. Best for retirement-focused savers.

Crediting Method

How your returns are calculated based on index performance

Annual Point-to-Point
Compares index value at start and end of each year. Most common method.
Cap: 9.50%
Monthly Sum Cap
Adds up monthly gains (each capped) over the year. More frequent resets.
Monthly Cap: 2.25%
Participation Rate
Receive a percentage of index gains. Often used with volatility-controlled indexes.
Participation: 50%

Your Investment

How much you typically spend on your card each month
Auto-calculated from spending, or edit directly
One-time starting amount

Selected Parameters

Term Length: 7 years
Crediting Method: Annual P2P
Cap/Rate Applied: 9.50%
Effective Rate Used: 5.75%

Projected Outcome

Based on 7-year term with historical average returns

Estimated Account Value
$8,057
+$1,337 growth from FIA
Total Contributions
$6,720
FIA Growth
$1,337
Effective Annual Return
5.75%
vs. 1% Cash Back
+$4,697
Growth Over Time
Contributions
FIA Growth
Important: These projections are hypothetical and for illustrative purposes only. Actual FIA returns depend on index performance, cap rates at renewal, and your specific contract terms. Past performance does not guarantee future results. FIAs have surrender charges if withdrawn early.

FIA vs. Other Annuity Types

Understanding your options for guaranteed retirement income

Type How It Works Typical Returns Risk Best For
Fixed Indexed (FIA) Returns linked to index (S&P 500) with caps; principal protected 3-8% (varies) No downside risk Growth + protection
Multi-Year Guaranteed (MYGA) Fixed rate guaranteed for entire term (like a CD) 5-6.5% fixed Zero risk Predictable income
Fixed Annuity Declared rate, may change annually after first year 4-5.5% (current) Low risk Conservative savers
Variable Annuity Invested in sub-accounts (mutual funds); value fluctuates -20% to +20% Market risk Aggressive growth
Immediate Annuity Lump sum converts to lifetime income stream 5-7% payout rate Longevity risk Retirees needing income

Data Sources & References

*Credited rates vary significantly based on contract terms, cap rates at time of purchase, index performance, and market conditions. Historical averages are illustrative and should not be relied upon for investment decisions.