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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