Fixed annuities are characterized by a minimum interest rate guaranteed by the issuing insurance company. Typically, a minimum annuity benefit is also guaranteed. With a fixed annuity, the focus is on safety of principal and stable investment returns. The fixed-rate annuity is very similar to a bank CD, but typically pays a higher minimum interest rate and offer greater security. You receive this amount no matter if the market goes down, interest rates decline or the insurer has an unprofitable year. They are a secure and safe, no-risk investment which makes them popular with conservative investors and for those who want to pinpoint exact returns on their investments.