A year ago here you could get 7% too on market rate accounts..now it's 2%.
Annuities are long term investments. Most of them , even those tied to the market seem to do well in the long run. If you're looking short turn, it's not the way to go.
I tend to spread out quite a bit, but have been fairly happy with a variable annuity I set up with ING
http://www.ing-usa.com/, about 4 years ago. If you want something stable and safe, stick with hard assets and real estate based fund..if you want better return over time..the market has always come back..and over time the overall market-tied fund usually does pretty well. You have to look at performance over time and your length of expectations.