How Index-Linked Annuity Interest Crediting Works

One-yr monthly aspect-to-point The month-to-month component-to-point index alternate is determined thru subtracting the previous month’s index rate from modern-day month’s index price and dividing it through the prior month’sindex charge. If this effects in a incredible month-to-month aspect-to-factor index trade and isn't greater than the declared cap, then it's miles Used because the capped index alternate for that month. If it's miles more than the declared cap, then we use the declared cap due to the fact the capped index trade for that month. A horrible monthly element-to-point index change is not situation to a cap. A “capped index exchange” for every month is captured over a 12-month length. The sum of the 12 month-to-month “capped index modifications” could be the index credit fee on the index crediting date. The index credit rating rate is progressed thru the choice’s account charge to determine the index credit rating. One-twelve months annual factor-to-point Th