499 / What is a fixed declared rate deferred annuity?

A fixed declared rate deferred annuity is a deferred annuity (i.e. one in which annuity payments may be deferred), represented in terms of fixed units (U.S. dollars), in which interest is declared prospectively, at the beginning of each crediting period (which may be one year or every N years). It has all the characteristics of other fixed deferred annuities (see Q 498), including a guarantee of principal (provided that the contract is held to the end of the surrender charge period) and a guaranteed minimum rate of interest.