Lock in guaranteed growth, protect principal, and keep life simple. Here’s how fixed annuities stack up in 2025—and how to find the best rate for your timeline.
A fixed annuity—often called a multi‑year guaranteed annuity (MYGA)—is a contract with an insurance company that credits a guaranteed interest rate for a set term, typically 2–10 years. Think of it like a bank CD from an insurer, with the added benefits of tax‑deferred growth and flexible payout options at maturity.
Guaranteed rates help you plan with confidence and avoid market volatility.
Your contract value isn’t exposed to market downturns—no negative crediting due to market performance.
For non‑qualified money, interest compounds tax‑deferred until withdrawn, potentially improving after‑tax growth.
Your rate is locked for the entire term—not a teaser that resets later.
Expect a surrender charge schedule, often matching the term. Many contracts allow 10% free annually.
Exiting early above free amounts can trigger an MVA that adjusts charges based on interest rate moves.
At maturity, keep liquidity or convert to guaranteed income for a period or life.
Use IRAs or non‑qualified dollars. Inside an IRA, the annuity adds guarantees, not extra tax deferral.
Products and rates vary by state and premium tier. Shop by your location and investment size.
Fixed annuities guarantee principal and interest backed by the insurer’s claims‑paying ability. Review carrier ratings (AM Best, S&P, Moody’s, Fitch) and diversify if appropriate.
Most MYGAs allow up to 10% of your account value annually without surrender charges. Larger withdrawals may incur charges and an MVA. You have a penalty‑free window at maturity.
Non‑qualified gains are taxed as ordinary income when withdrawn and typically follow LIFO rules (interest first). Early withdrawals of taxable gains before age 59½ may incur a 10% IRS penalty. In IRAs, the annuity adds guarantees while the IRA provides tax deferral.
Both guarantee interest for a set term. MYGAs often offer higher multi‑year yields and tax‑deferred growth for non‑qualified money. CDs are bank products with FDIC insurance; MYGAs are insurer products backed by the company’s financial strength.
All guarantees are backed by the issuing insurer’s financial strength. Rates and availability are subject to change and vary by state and product. This content is educational and not individualized tax or investment advice.
Rate Decrease Notice Multi-Year Guaranteed Annuity (MYGA) Knighthead MYGA Rate Hold Knighthead announced a 0.15% rate decrease effective Monday, October 20. Lock today’s rates
Multi Term Multi-Year Guaranteed Annuity (MYGA) Revol One DirectGrowth MYGA Lock a guaranteed rate across 5, 7, or 10 years with predictable accumulation, tax
Brochure Website DirectGrowth Multi-Year Guarantee Annuity™ Marketing Name: Revol One Financial Revol One Insurance Company is responsible for its own financial and
Ibexis MYGA Plus 7 Year Rates The Ibexis MYGA Plus 7-Year fixed annuity currently pays a guaranteed rate using simple interest for 7 years.
