A. Annuities have two categories - variable and fixed. A variable annuity has an interest rate that varies, and a fixed annuity pays a specified rate of interest.
An indexed annuity is really a fixed annuity, as each interest crediting strategy clearly defines the interest that it will pay, depending upon the market it is tied to's performance. While the interest paid can vary based upon that performance, it is generally defined by caps, participation rates, and floors, so you know what it will pay within those parameters.