A fixed account is the general-account option inside a life insurance or annuity contract that credits interest at a rate declared by the insurer. Values are backed by the insurer's general assets and are not directly exposed to market volatility. Credited rates may change at periodic resets, subject to a guaranteed minimum rate set by the contract. Policyowners use fixed accounts for principal stability, to stage funds before income, or to balance indexed or variable allocations. Interest accumulates tax-deferred in annuities and contributes to cash value growth inpermanent life.

During reviews, advisors shift allocations into the fixed account to reduce volatility or state funds for income. Carriers reset rates periodically; advisors monitor declared rates and guarantees.The fixed bucket can temporarily house loaned values or satisfy premium requirements during turbulent markets.