Index crediting is the method a fixed index annuity uses to turn a market index's movement into the interest it pays you. A common method is annual point-to-point, which compares the index value on your start date to its value one year later and credits gains up to your cap.
In plain terms: The formula that decides how much interest your indexed annuity earns from the market.
Indexed crediting is like judging a road trip only by the odometer at two points, ignoring every twist in between. Annual point-to-point checks the S&P 500 on day one and day 365, and the difference (up to the cap) becomes your interest. Fidelity & Guaranty Life's FG AccumulatorPlus 10 uses S&P 500 annual point-to-point with a 20.00% cap as of July 30, 2026. Other methods include monthly averaging and monthly sum, each with its own math.
The crediting method changes your result even when two products track the same index. Point-to-point rewards steady climbs; averaging methods behave differently in choppy markets. Knowing the method tells you how your annuity actually earns.
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