How Interest is Credited – Indexed Strategies
Annual Monthly Average with Cap (Continued)
Using the previous example of a positive index change of 4.6%:
- If the Cap was determined to be 3.5%, then the interest rate credited to the Indexed Account would be 3.5%.
- If the Cap was determined to be 5%, then the interest rate credited to the Indexed Account would be 4.6%.
However, if the index change was negative or zero, then the interest rate credited to the Indexed Account would be zero.
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