A fixed deferred annuity is similar to a cash deposit with more flexibility for accessing your money later. These will provide you with a fixed rate of return on the amount present in your account. The money in your contract is credited with a fixed rate of interest for a specific period of time. Taxes do not need to be paid on your earnings until you withdraw them as income. When you are ready to begin receiving income, you can choose from a variety of options to customize your income stream.