First of America Bank Corp., Kalamazoo, Mich., is offering a its first proprietary fixed annuity.

First of America already offered six nonproprietary annuities and one proprietary variable annuity.

The Parkstone Bonus Annuity is tax-deferred with a current guaranteed rate of 6.65% interest.

The annuity and Western National Life Insurance Co., Houston, Texas, banded together also offers a 1% bonus for the first year of ownership and a guaranteed minimum 3.5% interest rate. It features First of America's proprietary family of funds, the 15 Parkstone mutual funds.

The banking company sought out Western National because it considered the insurance company a leader in proprietary annuities business with banks, Jeff Klimek, a First of America spokesman, said.

Mr. Klimek said the bank decided to go ahead with a proprietary annuity because of the fees it can collect through that business, providing more discretion on part of the banking company itself.

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