PRINCETON, N.J. -- Interest rates on annuities, sold through banks and thrifts have fallen in the past two months, according to Princeton-based Kenneth Kehrer Associates Inc.
Its RateWatch survey showed the average base rate on annuities guaranteed for one year fell to 5.77% on Aug. 13, from 6.04% in mid-July and 6.35% in mid-June.
The average first-year bonus rate fell to 6.41%, from 6.71% in July and 7.15% in June.
Thirteen of 21 issuers surveyed had reduced annuity rates in the latest month. Eighteen of 21 had lowered their rates between mid-June and mid-July.
But the company said annuity sales have been strong because the returns contrast favorably with those on CDs.