Why do people buy annuities?

People typically buy annuities to help manage their income in retirement. Annuities provide three things:Periodic payments for a specific amount of time. This may be for the rest of your life, or the life of your spouse or another person.Death benefits. If you die before you start receiving payments, the person you name as your beneficiary receives a specific payment.Tax-deferred growth. You pay no taxes on the income and investment gains from your annuity until you withdraw the money.

What kinds of annuities are there?

There are three basic types of annuities: fixed, variable, and indexed. Here is how they work:Fixed annuity. A fixed annuity is a contract between the owner and an insurance company. The insurance company promises you a minimum rate of interest and a fixed amount of periodic payments. Fixed annuities are regulated by state insurance commissioners.Variable annuity. The insurance company allows you to direct your annuity payments to different investment options, usually mutual funds. Your payo...

How often do annuity rates change?

Carriers can update rates weekly or monthly, and sometimes more frequently when interest markets move. Always check the "Updated" date and get a personalized quote for your state and premium amount.

Are MYGA rates guaranteed for the entire term?

Yes. With multi‑year guaranteed annuities, your rate is fixed for the full term you select.

What if I need access to my money?

Most MYGAs include a 10% free withdrawal after the first year. Withdrawals above that may be subject to surrender charges during the term.

Are FIAs safe if the market drops?

Yes, fixed index annuities protect principal from market losses. Interest credits depend on index performance and the contract's cap or participation rate.

How Much Does a $500,000 Pay Per Month?

Learn how much a $500K annuity pays per month and which type would pay you the most. Read more Must-read

Annuities

Annuities, simple, transparent, and built around your goals

An annuity is a contract with an insurance company: you hand over a premium, and the carrier guarantees a rate of return, an income stream for life, or both. This page covers every type we broker, what today’s rates actually are, and how to tell which one fits what you are trying to do.

Written by Jason Caudill, MBA Reviewed by Bill Cardwell, CFP® Updated September 15, 2026

Today’s best fixed annuity rates

Live multi-year guaranteed annuity (MYGA) rates across 90+ top annuity companies, updated daily. Every term links to the full rate table for that duration.

Term	Top rate	Full table
2 years	5.25%	Best 2-year annuity rates
3 years	6.10%	Best 3-year annuity rates
5 years	6.55%	Best 5-year annuity rates
7 years	6.95%	Best 7-year annuity rates
10 years	6.25%	Best 10-year annuity rates

Rates update daily and change often. See how we get our rates, or compare annuity rates available in your state.

The four types of annuities

Every annuity sold in the United States is a variation on one of these four. Start here if you are not sure what you are looking at.

MYGA

Fixed annuity

A guaranteed interest rate for a set number of years. The closest thing to a CD that an insurance company sells, with tax deferral on the growth.

6.95%Top rate today

2–10 yrTerms

See fixed annuity rates How fixed annuities work

FIA

Fixed index annuity

Growth linked to an index such as the S&P 500, with a floor of zero. You give up some upside through a cap or participation rate in exchange for never losing principal to the market.

13.00%Top cap rate

0%Market-loss floor

See FIA cap rates How fixed index annuities work

SPIA / DIA

Income annuity

You trade a lump sum for a paycheck that cannot be outlived. Income can start immediately or be deferred to a future date you choose.

$500–$700Monthly per $100k

LifetimePayout option

Estimate your income How income annuities work

VA / RILA

Variable and registered index-linked

Market exposure inside an insurance wrapper. More upside, real downside, and fees that fixed products do not carry. We broker these but recommend them rarely.

PartialDownside buffer

1–3%Typical annual fees

About RILAs About variable annuities

Which one fits your situation

The same four products, re-cut by what people are actually trying to accomplish. Find the row that sounds like you.

I want a better rate than my bank CD, and I do not need the money for a few years

A MYGA pays a guaranteed rate for a fixed term and defers the tax until you withdraw, which a CD does not. The tradeoff is a surrender charge if you break it early.

Look at: a multi-year guaranteed annuity

From $10,000 Fixed annuity vs. CD

I am retiring soon and want a paycheck I cannot outlive

An income annuity converts a lump sum into guaranteed monthly income for life. A fixed index annuity with an income rider does something similar while keeping access to the account value.

Look at: a SPIA, a DIA, or an FIA with an income rider

From $25,000 How income annuities work

I want market-linked growth but I cannot afford another 2008

A fixed index annuity credits interest based on an index with a floor of zero, so a down year credits nothing rather than losing principal. Caps and participation rates are where carriers differ most.

Look at: a fixed index annuity

From $10,000 How FIA crediting works

I want to delay Social Security to 70 and need income to bridge the gap

A period-certain income annuity can cover the exact number of years between retiring and claiming, which raises your Social Security benefit permanently.

Look at: a period-certain income annuity

From $25,000 Social Security claiming calculator

I already own an annuity and I am not sure it is any good

Contracts written years ago are often stuck at rates far below what is available now. A 1035 exchange moves the money to a new contract without triggering tax.

Look at: a free policy review

No cost Free annuity audit

How to buy an annuity

The same four steps whichever product you land on. Nothing is signed until you have seen the contract.

Decide what the money should do

Grow safely, or pay income. That single answer eliminates half the market before you compare a single rate.
Compare carriers, not just rates

A quarter point of extra yield is not worth a weak balance sheet. We show the AM Best rating next to every rate.
Read the surrender schedule

Know exactly what leaving early costs and how much you can withdraw each year without penalty. See how surrender charges work.
Apply and fund

We handle the paperwork with the carrier. Most contracts are issued within two to three weeks. See our process start to finish.

Get a free quote Get the 2026 Annuity Buyer’s Guide

Run your own numbers

No contact details required. Every calculator runs in your browser.

Carrier financial strength

An annuity guarantee is only as good as the company behind it. We show the AM Best rating next to every rate we publish, and we place business with carriers we would use ourselves.

90+ top annuity companiesCarriers we can broker, so a recommendation is never limited to one shelf
$130 million+In annuity premium placed through My Annuity Store since 2020
47 statesStates we are licensed in
A++ to B++AM Best range of the carriers on our rate tables, always disclosed

Compare all carriers State guaranty coverage What AM Best ratings mean

Frequently asked questions

Are annuities safe?

Fixed and fixed index annuities do not lose principal to market declines. The guarantee is backed by the issuing insurance company rather than the FDIC, and every state runs a guaranty association that covers contracts up to a statutory limit if a carrier fails. Read more on annuity safety.

How much does a $100,000 annuity pay per month?

Roughly $500 to $700 a month for a 65-year-old buying lifetime income today, depending on age, state, and whether the income is single or joint life. See the full $100,000 annuity payout breakdown.

Are annuities taxable?

Growth inside an annuity is tax-deferred until you withdraw it. In a non-qualified contract, withdrawals come out earnings-first and are taxed as ordinary income; inside an IRA, the usual IRA rules apply instead. Here is how annuity taxes work.

What happens to my annuity when I die?

It depends on the payout option and the beneficiary designation. Most deferred annuities pay the remaining account value to your named beneficiary outside probate. Read about annuity death benefits.

What does an annuity cost?

Fixed and fixed index annuities generally carry no annual fee. The carrier makes its margin on the spread, and the commission is paid by the insurance company rather than deducted from your premium. Optional riders and variable annuities do carry explicit annual charges. See annuity fees and commissions explained.

Can I get my money back early?

Most contracts allow penalty-free withdrawals of up to 10% a year after the first year. Taking more than that during the surrender period triggers a surrender charge that declines each year. See how surrender charges work.