Q:

What are the retirement annuities rates in the United States?

A:

Quick Answer

The annuity interest rate for August 2015 is 2.500 percent, according to the Thrift Savings Plan, which is administered by the Federal Retirement Thrift Investment Board. The interest rate for July 2015 was 2.250 percent. Annuities are often part of retirement investment plans, notes the U.S. Securities and Exchange Commission.

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Full Answer

An annuity is a contract between an investor and an insurance company, explains the SEC. That contract requires the insurance company to make payments, immediately or in the future, to the investor. Three types of annuities are available: fixed annuities, which offer a minimum interest rate for a specified period of time; variable annuities, which offer a payout that differs depending upon the amount invested and the rate of return; and indexed annuities, which offer a return that is based on the return of a specific stock market index. The SEC regulates variable annuities, and state insurance commissioners are responsible for regulating the other two types of annuities.

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