Tough case to make

A fixed deferred annuity that offers 1 percent guaranteed for 4 years?

Pretty slim pickings.

I realize that we live in a world with very low interest rates, but why would someone lock-up their funds for several years with a guarantee of only 1 percent?

Withdrawals are also pretty tough with this annuity.  The only "penalty free" withdrawal amount allowed is the interest that is earned in the previous contract year.

Huh?  So this means that if someone has $100K in this product and earns the minimum guarantee of 1 percent the previous year, the amount that would be available for a penalty free withdrawal is only $1,000?

This issue is compounded by the fact that this annuity seems to have a longer surrender charge schedule than some of the other fixed deferred annuities offered by Fidelity.

Also, on a comparative basis (again, with other fixed deferred annuities from Fidelity) the guaranteed rate of 1 percent for the 4 year surrender schedule is pretty low.  And, there is no jumbo or teaser rate with this product like there is with some other products.