That is a great question! An annuity can be really sorted out into two types – A variable annuity, which has an interest rate that can go all over the board; and a fixed annuity, which pays a specified rate of interest. An indexed annuity is really a fixed annuity, as each interest crediting strategy clearly defines the interest that it will pay, depending upon the market it is tied to’s performance. While the interest paid can vary based upon that performance, it is generally defined by caps, participation rates, and floors, so you know what it will pay within those parameters. I hope that helps, thanks for asking!