The Royal Annuity is a financial product that allows for periodic payments to be made to the person who has made a lump sum or periodic payment to Royal Exchange from a predetermined date. It could be of two types: immediate and deferred.
Immediate Annuity: You may choose your annuity payment to begin immediately after you purchased it. If you choose an annuity interval/period of one year then the first annuity payment will be made one year after the annuity is purchased.
Deferred Annuity: Here the period of the annuity payment is scheduled to begin at some future date e.g. you may purchase an annuity this year and decide that the annuity payments should begin in 5 or 10 years time.