Fixed Index Annuities are contracts between the annuitant and an insurance company in which the insurance company promises to credit interest based on the performance of a certain stock market index. Fixed Index Annuities has an inbuilt capital protection feature, so even if the index goes down, your principal will remain safe. 

Best Fixed Indexed Annuity Rates – 2021

You were always looking for the best Fixed Index Annuity (FIA) rates but couldn’t find them anywhere on the internet. Well, you won’t because Fixed Index Annuities have a market component attached to them, and nobody can predict the market in advance.

The good news is that we can know the annuities with the potential to earn the highest returns. 

How do we assess an annuity’s potential to earn high returns?

We have been doing in-depth and independent reviews of major annuities for a while and thus gained tremendous experience in assessing the annuities that can fetch potentially higher returns. We assess an annuity’s potential to earn superior returns based on several factors such as:

  1. High Participation Rates
  2. High Caps
  3. Low Spreads
  4. Bonus Component
  5. Low Costs and Fees

You can access our detailed annuity product reviews here.

Fixed Indexed Annuities (FIA) with the potential to earn the highest returns – 2021 

Below are some of the best Fixed Indexed Annuities (FIAs) that we feel have the potential to earn the highest returns, updated for 2021.

1F&G Accelerator Plus Annuity

F&G Accelerator Plus is an ideal annuity if you are looking for a no-frill product with high earning potential. It offers some of the highest caps and participation rates in the industry. 

At the time of writing this article, it offered a generous cap of 7% on the S&P 500 Index and a very generous participation rate of 155% on the CIBC Balanced Asset 5 Index.

IndexCrediting StrategyParticipation Rate/Cap 
S&P 5001-year point-to-point7% Cap
CIBC Balanced Asset 5 1–year point-to-point155% Participation Rate

The F&G Accelerator Plus Annuity offers the potential to earn high returns and is best suitable for investors looking for growth. Although you must keep in mind that it offers very limited riders, thus may not be a suitable plan for you if you intend to leave a legacy.

2American Equity AssetShield Annuity

The American Equity AssetShield Annuity is another good annuity that offers a high participation rate on several of its indexes. It is an ideal annuity for investors looking to grow their savings with less risk.

At the time of writing this article, it offered an above 100% participation rate on its BofA Destinations Index, CS Tech Edge Index, S&P 500 Dividends Aristocrats Index, and SG Global Sentiment Index.

IndexCrediting StrategyParticipation Rate/Cap 
BofA Destinations Index2-year point-to-point115% Participation Rate
CS Tech Edge Index2–year point-to-point120% Participation Rate
S&P 500 Dividends Aristocrats Index2–year point-to-point110% Participation Rate
SG Global Sentiment Index2–year point-to-point120% Participation Rate

Besides the high participation rates, the American Equity AssetShield Annuity offers the option to earn even high returns through its Rate Integrity Rider and Performance Rate Rider. You can know in detail about our review of American Equity AssetShield here.

3Nationwide New Heights Select Annuity

The Nationwide New Heights Select Annuity offers a good participation rate on several of its indexes. Besides the good participation rates, it offers the annuitant an option to choose from the two living benefits riders and death benefits riders, respectively.

At the time of writing this article, it offered an above 100% participation rate on its SG Macro Compass Index, NYSE Zebra Edge II Index, and JP Morgan Mozaic II Index. Although, you must keep in mind that all these interest crediting options come with a pre-defined strategy spread.

IndexCrediting StrategyParticipation Rate/Cap Strategy Spread
SG Macro Compass Index3-year point-to-point110% Participation Rate1.50%
NYSE Zebra Edge II Index3–year point-to-point130% Participation Rate1.50%
JP Morgan Mozaic II Index3–year point-to-point115% Participation Rate1.50%

The Nationwide New Heights Select Annuity is an ideal all-rounder annuity for investors looking for both growth and protection. The death benefits riders enable the investors to leave a legacy. You can know in detail about our review of Nationwide New Heights Select Annuity here.

4Athene Agility Annuity

The Athene Agility Annuity is another good all-rounder annuity that offers good rates on its crediting strategies. One thing that I like about the Athene Agility Annuity is that it offers all the available riders absolutely free of cost.

At the time of writing this article, it offered good participation and cap rates on its BNP Paribas Multi-Asset Diversified Index, AI-Powered US Equity Index, and S&P 500 Index. 

IndexCrediting StrategyParticipation Rate/Cap 
S&P 5002-year point-to-point6.25% Cap
BNP Paribas Multi Asset Diversified Index2–year point-to-point90% Participation Rate
AI-Powered US Equity Index2–year point-to-point72% Participation Rate

Although these rates are not the best of the lot, it is noteworthy that it offers both income and death benefit riders free of cost, making it a good all-rounder policy. You can know in detail about our review of the Athene Agility Annuity here.

Conclusion

While we can’t know the rates of Fixed Indexed Annuities in advance, we can definitely know the potential of a particular annuity to earn returns. For example, if an annuity offers very low cap rates, we can only earn the cap rate no matter the market return. Thus, it is very important to know about the Participation Rates, Cap Rates, Spreads, and other rates before you make your decision to invest in a particular Fixed Indexed Annuity (FIA) product.

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