Great-West Investments is a major provider of investment and insurance products, including fixed annuities that offer a fixed account with a guaranteed minimum interest rate. The fixed account interest rates are important considerations for investors looking to park funds in Great-West’s fixed annuity products. This article will provide an overview of Great-West’s current fixed account interest rates, how they are determined, and factors that impact the rates offered. We’ll also look at how Great-West’s rates compare to competitors and tips for getting the best rate when purchasing a Great-West fixed annuity.
Current interest rates offered on Great-West’s fixed accounts
Great-West currently offers fixed account interest rates ranging from 1% to 3% on its fixed annuity products like the Great-West SecureFoundation series. For example, the SecureFoundation Advance fixed annuity offers rates from 1.15% to 3.00% based on the guarantee period, with higher rates for longer guarantee periods. The base rate for the 5-year guarantee period is 2.65%. Rates are adjusted periodically based on market conditions but are guaranteed to never go below the stated minimum floor.
How Great-West determines fixed account interest rates
Great-West sets the interest rates on its fixed annuity accounts based on a number of factors including current market yields on fixed-income investments like bonds, competitor rates, profit margin targets, and expected customer demand. The rates need to be high enough to attract customers while also delivering an acceptable profit margin to Great-West after accounting for costs and risks taken on.
Market factors impacting fixed account rates
Interest rates available on fixed accounts are heavily influenced by broader market rates on fixed-income securities. As market rates rise, Great-West will typically raise the rates on its fixed accounts. However, the company does not immediately adjust its rates with every market fluctuation. It tends to make periodic adjustments based on longer-term rate trends.
How Great-West’s fixed account rates compare
Great-West’s current fixed account interest rates are fairly competitive with other top fixed annuity providers. Most competitors offer rates in the 1-3% range as well, with variations based on the guarantee period. Great-West tends to be on the higher end for shorter 1-3 year guarantee periods. For example, its 2-year rate of 2.15% compares favorably to 1-2% rates from leading insurers like New York Life and Pacific Life.
Tips for getting the best rate from Great-West
While Great-West’s base rates are set, you may be able to negotiate a higher rate by committing to a longer guarantee period or a larger purchase amount. Opening multiple accounts can also qualify you for rate bumps in some cases. It’s best to have your advisor directly inquire with Great-West when shopping for the highest fixed account rate possible.
Great-West Investments offers competitive fixed account interest rates between 1-3% on its fixed annuity products. Rates are adjusted based on market conditions and profitability considerations. Investors can often negotiate slightly higher rates by opting for longer guarantees or larger purchases when working with an advisor.