Guaranteed Minimum Interest Rate in Fixed Annuities

A guaranteed minimum interest rate (GMIR) is a contractual promise that an insurance company will credit at least a stated minimum rate on your annuity, no matter what markets do. It is the lowest annual interest rate a fixed annuity will ever credit, written into the contract itself. Higher rates can be declared, but the floor cannot be breached.

How the GMIR Works

For MYGAs, the GMIR is less relevant during the initial guarantee period, because the credited rate is already locked in at a higher level. It becomes important after the guarantee period ends, if you leave money in the contract rather than withdrawing or doing a 1035 exchange.

For traditional fixed annuities with annually declared rates, the GMIR ensures the insurer cannot drop your rate below a certain level, typically 1% to 3% depending on the contract and state regulations.

Where to Find It

GMIR is disclosed in your policy and illustration. Review your issue documents and ask your licensed producer to confirm the current floor.

How It Works with Declared Rates and Renewals

Declared rates may change at renewal, but cannot go below the GMIR during the guaranteed period specified. Compare products and renewal histories on our fixed annuity overview and fixed annuity rates pages.

Why GMIR Matters

• Sets a worst-case accumulation assumption.
• Helps evaluate conservative growth scenarios.
• Useful for laddering and liquidity planning.

Frequently Asked Questions