How Do Fixed Annuity Companies Make Money? 
Companies which offer Fixed Annuities & Fixed Indexed Annuities make money in several different strategies depending on the product . Some annuities have caps . The company will make money from interest earned over the cap . Other annuity products have spreads or fees meaning they will take a % which is set at the time the contract is taken . Others will have participation rates meaning you participate or get a % of the interest which was earned . There are a few other ways as well . if you have a specific question about an annuity you are looking at , do not hesitate to call your Broker or reach out to me . 