How Do Crediting Rates Work?

A crediting rate is the interest rate earned on the contract value (principal plus accrued income) expressed as an effective annual yield. The crediting rate also acts as a stabilizing mechanism by amortizing investment gains and losses so that participants are protected from short-term changes in market value.

How are crediting rates calculated?

Crediting Rates are determined daily and reflect the movement in the valuation of assets held in each option between each business day. Crediting rates are calculated the next business day, so we can include the latest market values for international securities which close overnight.

What is monthly crediting rate?

The rates credited or debited to your account are the actual monthly earning rates compounded for your chosen investment options, after deducting tax, investment management fees and other costs, where applicable.