Fixed annuity buyers may be able to choose from different interest crediting strategies to help meet their retirement objectives. These strategies vary among insurers and contracts, and include annual and multi-year interest rates.

• Annual Interest Rates: Most insurers offer annuity interest rates that are guaranteed for the first year or the contract, but may change at each renewal date based on changing interest rates in the economy (although the rate won't fall below the contract's minimum guaranteed rate). Typically, insurers offer first-year interest rates and lower renewal interest rates, and some offer attractive first-year bonuses as a marketing device.

• Multi-Year Interest Rates: Some insurers allow buyers to select from among current interest rate guarantee periods of two to 10 years. At the maturity of each interest rate guarantee period, the owner typically has 30 days to surrender the contract without penalty (under certain conditions), renew the same multi-year period or select a new guarantee period. If an owner eventually decides on a shorter or longer initial guarantee period, the accrued value can be transferred to a new interest rate guarantee period once a year. Multi-year guarantee annuities also offer a guaranteed minimum interest rate for the life of the contract. The longer the guarantee period, the less impact a surrender charge or market value adjustment charge will have. Moreover, with a multi-year interest rate contract, the annuitant always knows the annuity's value at any future date, such as retirement.

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