Interest crediting rates
- A single interest crediting rate applies to the entire amount of the existing accumulation (and contributions made) during each upcoming six-month rate guarantee period.
- Interest crediting rates are declared in advance of each semiannual period (1/1-6/30 and 7/1-12/31) and will always be greater than or equal to the minimum guaranteed interest rate.
- The minimum guaranteed interest rate is also declared in advance of each semiannual period and will always be between 1% and 3%.
- Additional protection is built in when the interest crediting rate is reset. The new rate will not be lower than 75% of the current rate. Conversely, there is no limit on how much the rate can increase.
TIAA looks at a number of factors when determining interest crediting rates. They include but are not limited to: current and projected interest rate environment, contract and asset portfolio cash flow projections, contract features, and expense and risk capital assumptions.