Deferred annuities offer guaranteed gains and absolute minimum guarantees. This type of fixed annuity is a popular safe investing vehicle as it allows the principal to grow tax-deferred and guarantees a gain each year. A deferred annuity can offer a guaranteed rate for 1 year with a base rate for future years or will guarantee an interest rate for specific term 1-10 years usually.

Like all fixed annuities, deferred annuities are issued as contract with an insurance company. A fixed deferred annuity is a very safe investment the insurance company is required to retain reserves that are equal to or greater than the total value of your policy (principal plus interest minus any early withdrawal fees).