How Much Interest Can a Fixed Index Annuity Really Earn?

Shawn Plummer

CEO, The Annuity Expert

Is a fixed index annuity a good investment? What’s the average rate of return on an annuity? What are fixed index annuity return rates? This guide will provide a better idea of how much interest a fixed index annuity can earn for your retirement savings.

For those new to annuities, a fixed index annuity is an insurance-based retirement savings plan that allows an investor to earn interest from a fixed rate of interest and/or the positive movement of an external index without the stress of losing money to a stock market crash.

Fixed index annuities are insurance policies for retirement.

This guide will answer the following questions:

  • How do fixed index annuities make money?
  • What is the average return on a fixed index annuity?
  • Where can I find fixed index annuity historical performance?
  • What is a good rate of return on an annuity?
  • What is the best fixed index annuity?
  • Do you earn interest on an annuity?
  • How does annuity interest work?
  • What are current fixed index annuity rates?

Index Annuity Average Return

Both my wife and I own a few fixed index annuities. Before I purchased the first FIA, I researched 1,000+ retirement plans to find the perfect annuity for me. I tested on myself first then proceeded with additional index annuities after my results.

Fixed Index Annuity Example #1

This fixed index annuity was purchased in 2016 for $10,002.49. I chose an S&P 500 strategy to earn my interest. Since then, I have earned $4,894.63 of interest. That is a nearly 49% increase in just 5 years. I paid zero fees. I lock in every gain and can not lose money when the next stock market crash occurs.

Fixed Index Annuity Example

Index Annuity Example #2

After finding that my fixed index annuity can perform well, I rolled over one of my wife’s old 401(k) plans to the same annuity in 2017. Over the past 4 years, my wife has earned $37,783.68 in interest. That’s a 35.5% increase! She paid no fees, locked in every penny of interest, and will not lose any of her earnings.

Annuity Rate Of Return


A fixed index annuity can earn better interest than a CD or traditional fixed annuity, providing the right FIA is chosen.

An index annuity owner does not have to pay fees in all plans.

If you are interested in safely growing your retirement savings plan without paying a ton of fees, contact us.

If you’d like to know how much income an annuity can pay per month, check out this guide.

Additional Reading

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

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