C0260 reflects the average guaranteed yearly interest rate over the remaining period for which the guarantee applies, whereas C0261 reflects the guaranteed yearly interest rate applicable for the reporting year.

For example, where the guaranteed interest rate for the reporting year is 2%, but lower guaranteed rates apply subsequently, resulting in an annualised average guaranteed rate of 1.1% over the remaining guarantee period, C0261 should be reported as 2% and C0260 as 1.1%.

Where the same guaranteed interest rate applies throughout the remaining guarantee period, the values reported in C0260 and C0261 will be the same.

Please also refer to Q&A 2845 for the treatment of implicit guarantees, including guarantees provided in the form of a guaranteed annuity factor.