---
title: "What Is Fixed Annuity? Definition | Epic Life Glossary"
description: "A fixed annuity is an insurance contract that earns a stated interest rate set by the insurer. The rate is guaranteed for a period, and the insurer..."
url: https://epicline.preview.multisites.ai/glossary/fixed-annuity
publisher: Epic Life Group
apply: https://epicline.preview.multisites.ai/apply
quote: https://epicline.preview.multisites.ai/get-a-quote
---

Annuity terms

# Fixed Annuity

A fixed annuity is an insurance contract that earns a stated interest rate set by the insurer. The rate is guaranteed for a period, and the insurer promises a minimum interest rate for the life of the contract.

## Why it matters

Fixed annuities appeal to savers who want predictable growth and no stock market risk. The insurer may reset the rate after the first guarantee period, and a minimum rate applies. Early withdrawals can trigger surrender charges, and withdrawals before age 59 and a half may bring a tax penalty. Fixed annuities are not FDIC insured. Guarantees depend on the insurer's strength. State guaranty associations offer limited protection, with limits that vary by state.

Source: [investor.gov](https://www.investor.gov/introduction-investing/investing-basics/glossary/fixed-annuity)

[Read next, for familiesAnnuities explained: fixed, fixed-index, MYGA, income riders and surrender charges](https://epicline.preview.multisites.ai/annuities)

## Where we use this term

-   [Fixed vs fixed index annuity: how do they work and who do they fit?](https://epicline.preview.multisites.ai/guides/fixed-vs-fixed-index-annuity)

## Start your climb.

Tell us where you are today and request a call about licensing, training and the calls.

[Apply to join](https://epicline.preview.multisites.ai/apply)

Shopping for coverage instead? [Get a quote](https://epicline.preview.multisites.ai/get-a-quote)