Fixed annuities are the safest of the three, because they offer stable, guaranteed rates of interest.
Common types of annuities include fixed annuities, indexed annuities and variable annuities. Fixed annuities are the safest of the three, because they offer stable, guaranteed rates of interest. Indexed annuities are modestly riskier, because their returns can fluctuate. Variable annuities are the riskiest type of annuity, because they entail assuming investment positions in stocks and bonds.