You can choose how to allocate your money between 45 indexed accounts and a fixed account that offer the potential for growth along with a level of protection.
The Fixed Account
You’ll earn daily fixed interest on any money you allocate to the fixed account. We set an interest rate for the fixed account for one year and renew it on each contract anniversary. The fixed account will never earn less than the Guaranteed Minimum Interest Rate of 1.00%.
Indexed Account Options
The 45 indexed account options are divided into four categories. Each of the indexed accounts has an underlying index or Exchange Traded Fund (collectively referred to as the “indexes”). When you allocate money to an indexed account, you create a segment, which will last for one, two, three or six years. Your money has the potential to grow based on the performance of the underlying index.
- Standard indexed accounts — There are 29 Standard indexed accounts. When the index rate of return is positive at the end of a segment, you will earn that return, up to the cap (the maximum return that a segment can earn). If the index rate of return is negative, there are buffers of either -10%, -15% or -25% or a -10% floor that may help shield your annuity. Standard indexed accounts are available with terms of one, two, three and six years.*
- Annual Lock indexed accounts — There are six Annual Lock indexed accounts. The index rate of return will be calculated each year on your contract anniversary, and that return will be locked, up to the cap. If the index rate of return is negative for a given year, we will apply a -10% buffer to help reduce your losses and that return will also lock in. On the segment maturity date, a cumulative rate of return will be calculated that reflects all annual returns. Annual Lock indexed account are available with terms of three and six-years.*
- No Cap with Annual Fee indexed accounts — There are four No Cap with Annual Fee indexed accounts. When the index rate of return is positive at the end of a segment, you will earn that return, subject to a fee. If the index rate of return is negative, a buffer of either -10% or -15% is applied to help reduce your losses. The fee will reduce the rate of return after the buffer is applied. No Cap with Annual Fee indexed accounts have terms of one and three years.
- Enhanced Upside Participation indexed accounts — There are six Enhanced Upside Participation indexed accounts. If the index rate of return is positive at the end of a segment, it is multiplied by a 250% participation rate, and you will earn that enhanced return up to the cap. The 250% participation rate is applied only to positive returns. If the index rate of return is negative, a -10% buffer is applied to help reduce your losses. Enhanced Upside Participation indexed accounts have terms of one, three and six years.*
*Six-year indexed accounts are available only with the six-year surrender charge schedule.
At the start of each new segment, rates, caps, upside participation rates and annual fees will be reset by RiverSource Life at our discretion. The cap and upside participation rate will never be less than the Minimum Cap and Minimum Upside Participation Rate. The Annual Fee will never be more than the Maximum Annual Fee. In the future, RiverSource Life reserves the right to add a cap to the No Cap with Annual Fee indexed accounts, which will be set at our discretion. Indexed accounts may be discontinued. When segments mature, any money in discontinued indexed accounts would need to be reallocated to different indexed accounts or the fixed account based on your instructions. If no instructions are received, the money will move to the fixed account.