Posted in Finance, Accounting and Economics Terms, Total Reads: 575
Annuities refer to a stream of payment made at regular intervals over a given period of time. Fixed annuities, thus imply that these payments are of fixed amount.
This is a result of fixed interest rate over the maturity period rather than a floating interest rate with which the payments would vary. Fixed annuities are more popular among the retired population who seek stability and fixed cash inflows.