Fixed annuities are essentially CD-like investments issued by insurance companies. Like CDs, they pay guaranteed rates of interest, in many cases higher than bank CDs. Fixed annuities have a guaranteed
minimum rate of return that never varies regardless of market swing. The Insurance company assumes the all the risk in a fixed annuity. The convenience and predictability of a set payout makes fixed annuities a popular option for retirees who want a known income stream to supplement their other retirement income.