Fixed annuity interest rates going lower: June 2009

By Danny Fisher

June 22, 2009 at 08:00 PM

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Interest rate trends on fixed annuities

				Normal Annuity Range
ALL Annuities in Index	Number of Companies	Number of Annuities	Lowest Rate	Low Norm	Average Rate	High Norm	Highest Rate	Standard Deviation
6/1/2009	70	720	1.25%	2.42%	4.58%	6.75%	14.61%	2.16%
5/4/2009	70	738	1.75%	2.58%	4.72%	6.85%	14.61%	2.13%
12/1/2008	74	770	2.00%	3.55%	5.56%	7.56%	14.61%	2.01%
6/2/2008	75	748	1.80%	3.13%	5.19%	7.24%	16.16%	2.05%

Note: Rate includes "Non-Forfeitable" first year interest bonus.

CD-type annuities: Average rates for length of guarantee period

Years	1	2	3	4	5	6	7	8	9	10
6/01/09	2.63%	1.95%	2.75%	3.13%	3.39%	3.41%	3.56%	3.92%	4.03%	4.13%
5/04/09	2.63%	2.55%	2.90%	3.27%	3.51%	3.49%	3.69%	3.97%	4.07%	4.25%
12/01/08	3.73%	3.29%	3.94%	4.57%	4.43%	4.61%	4.76%	5.05%	4.95%	5.23%
6/02/08	3.34%	3.21%	3.78%	3.96%	4.15%	4.22%	4.30%	4.55%	4.60%	4.69%

Source: Fisher Annuity Index, Dallas

Data as of 6/03/2009

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