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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Fixed Annuity

Definition:

An annuity where the earnings on the investment are at a fixed rate. Very similar to the interest on a bond or a savings account.

If you have a retirement fund and then take the money and set up an annuity so that you have a yearly or monthly income from that money, a fixed annuity will give you no surprises: you'll get the same rate and earnings on your investment.