Today’s Best Fixed Annuity Rates Comparison Table
Annuity rates vary by state. We suggest using the filters to find the best fixed annuity rates in your state. Choose your age, liquidity features, and investment amount. The annuity rates shown below are sourced through Annuity Rate Watch and updated automatically every 6 hours via API.
Key Takeaways
- Top MYGA rate today: up to 6.50% for 7 years from A-rated carriers, updated daily.
- Fixed annuities beat 5-year CDs by 1.0%-1.5% and all interest grows tax-deferred.
- Minimum deposits start at $2,500; most buyers invest $50,000-$250,000.
- Your money is protected by state guaranty associations up to $250,000 per insurer.
Fixed Annuities vs CDs
Fixed annuities and certificates of deposit are often compared because both appeal to conservative savers looking for stability and predictable returns. While they share some similarities, they work very differently once you look beyond the surface.
A CD is issued by a bank and is typically insured by the FDIC up to applicable limits. A fixed annuity is issued by an insurance company and offers guarantees backed by that insurer’s claims-paying ability. Both can provide principal protection, but the tax treatment, liquidity rules, and long-term growth potential are not the same.
In many market environments, fixed annuities may offer higher rates than CDs, especially on longer terms. They also grow tax-deferred, which means you do not pay taxes on gains each year while the money remains in the contract. That tax deferral can make a meaningful difference over time.
CDs, on the other hand, are often more familiar and may be easier to access for short-term savings needs. They can make sense for money you may need sooner, while fixed annuities may be better suited for retirement dollars you can leave in place for longer.
Fixed annuities may be a better fit if you want:
- Tax-deferred growth
- Potentially higher guaranteed rates
- A retirement-focused savings vehicle
- Protection from market losses
CDs may be a better fit if you want:
- Very short-term cash positioning
- Bank-based savings
- FDIC insurance within coverage limits
- Simpler access for near-term needs
The better choice depends on your purpose for the money. If you are saving for retirement and want to lock in a guaranteed rate with tax deferral, a fixed annuity may offer more long-term value. If you need shorter-term flexibility and want a bank product, a CD may be more appropriate.
A lot of savers use both. They keep short-term cash in bank products and use fixed annuities for a portion of long-term retirement assets they want to grow safely. For a full side-by-side breakdown, see our fixed annuity vs. CD comparison guide.
| Term | Best Annuity Rate | $100,000 → Annuity | Best CD Rate | $100,000 → CD | Annuity Edge |
|---|---|---|---|---|---|
| 2-Year | 5.15% CL Life | $110,565 +$10,565 earned | 4.30% National Best | $108,785 +$8,785 earned | +$1,780 |
| 3-Year | 5.65% Farmers Life Insurance Company | $117,926 +$17,926 earned | 4.20% National Best | $113,137 +$13,137 earned | +$4,789 |
| 4-Year | 5.20% Oceanview Life and Annuity | $122,479 +$22,479 earned | 4.10% National Best | $117,436 +$17,436 earned | +$5,043 |
| 5-Year | 6.30% American Gulf | $135,727 +$35,727 earned | 4.25% National Best | $123,135 +$23,135 earned | +$12,592 |
Best CD rate as of April 11, 2026 according to Bankrate.com. Annuity values use compound interest at the stated rate; products marked SI use simple interest. Rates subject to change without notice. Availability & features vary by state and insurer. Guarantees are backed by the claims‑paying ability of the issuing insurance company. Not a bank product. Not FDIC insured. State guaranty association limits apply (vary by state).
The Tax Advantage: Why Fixed Annuities Can Beat CDs After Taxes
Most rate comparison pages stop at the headline number, 6.30% annuity vs. 4.00% CD. But that comparison misses the single biggest advantage fixed annuities have over bank products: tax-deferred compounding.
With a CD, the IRS taxes your interest every year, even if you don’t touch the money. That annual tax drag quietly eats into your real return. A fixed annuity, on the other hand, lets every dollar of interest compound untouched until you withdraw.
Here’s what that looks like on a $200,000 investment over 5 years:
| 5-Year MYGA (5.65%) | 5-Year CD (4.00%) | 5-Year Treasury (4.25%) | |
|---|---|---|---|
| Gross Value at Maturity | $263,166 | $243,330 | $246,080 |
| Annual Tax Drag (24% bracket) | $0 / year | $1,920 / year | $2,040 / year |
| After-Tax Value at Maturity* | $247,846 | $233,730 | $235,958 |
| Net After-Tax Gain | $47,846 | $33,730 | $35,958 |
*MYGA assumes full withdrawal taxed at 24% federal rate at maturity. CD and Treasury interest taxed annually at 24%. Treasury interest exempt from state tax. Actual results depend on your tax bracket and state.
The MYGA produces $14,116 more in after-tax gains than the CD, and $11,888 more than the Treasury, on the same $200,000. That gap widens in higher tax brackets and over longer terms. If you’re in the 32% bracket, the MYGA advantage grows to over $18,000.
Use our fixed annuity vs. CD calculator to run the comparison with your own numbers. This is why financial professionals often describe MYGAs as “the CD’s tax-advantaged cousin.” The headline rate is only part of the story. The IRS Publication 575 covers the full tax treatment of annuity income.
Important caveat: If you withdraw annuity earnings before age 59½, you may owe a 10% IRS penalty. You will also owe ordinary income tax. This makes fixed annuities best suited for money you don’t need until retirement.
Fixed annuity rates increased across most terms this week. New offerings replaced several lower-yield products, pushing rates higher by roughly 0.25% to 1.85% across the 4-, 5-, 6-, 7-, and 10-year terms, signaling stronger competition in the MYGA market.
Top Guaranteed Rate: 6.50% for 7 Years from Knighthead Staysail, the highest fully guaranteed fixed rate available with no first-year teaser gimmicks.
Best Rate with Liquidity: 6.15% for 5 Years from American Gulf Anchor MYGA, featuring 10% penalty-free withdrawals starting in year one.
Best A+ Rated Carrier: 5.20% for 7 Years from Athene MYG 7, the top rate from an A+ AM Best rated insurer for investors who prioritize financial strength.
Week of April 7, 2026
How Fixed Annuity Rates Work
A fixed annuity offers a guaranteed interest rate for a stated period of time. In most cases, when people search for fixed annuity rates, they are looking at multi-year guaranteed annuities, often called MYGAs. These contracts are designed to protect principal while crediting a fixed rate for a set number of years.
The basic concept is straightforward: you place a lump sum with an insurance company, and the insurer guarantees a rate for the length of the contract. During that guarantee period, your money grows on a tax-deferred basis, and your principal is not exposed to stock market losses.
Fixed annuity rates are usually tied to the contract term. A 3-year annuity may offer one guaranteed rate, while a 5-year, 7-year, or 10-year annuity may offer a different rate. In many cases, longer terms provide higher yields, but that is not always true. The interest-rate environment, insurer pricing, and product design all play a role.
It is also important to understand that the quoted rate is only one part of the contract. Two annuities may show similar yields but differ in:
- Surrender charge schedule
- Free withdrawal provisions
- Market value adjustment rules
- Minimum premium requirements
- Insurer financial strength
That is why the best fixed annuity is not always the one with the single highest rate. The right product is the one that fits your timeline, liquidity needs, and overall retirement strategy.
What Affects Fixed Annuity Rates
Fixed annuity rates do not move randomly. They are influenced by a mix of market conditions, insurer strategy, and product features. Understanding what affects rates can help you make better sense of why one contract pays more than another.
Interest Rates and Treasury Yields
Insurance companies generally invest premium dollars in high-quality fixed-income assets such as bonds. When Treasury yields and broader interest rates rise, insurers often have more room to offer higher annuity rates. When yields fall, new annuity rates may decline as well.
Contract Term Length
Longer-term annuities often pay more because the insurer can invest your premium for a longer period. In exchange for committing your money for more years, you may receive a higher guaranteed rate. However, the extra yield should always be weighed against the longer surrender schedule.
Insurer Pricing Strategy
Not every company prices its products the same way. Some insurers compete aggressively on rate to attract deposits. Others may offer slightly lower yields while emphasizing stronger financial ratings, broader withdrawal features, or different contract terms.
Financial Strength and Risk Profile
Annuity buyers often compare rates alongside AM Best ratings and other financial strength measures. A lower-rated insurer may sometimes offer a more aggressive headline rate than a highly rated carrier. That does not automatically make it a poor choice, but it does mean buyers should evaluate the tradeoff carefully.
State Availability
Annuity products and rates can vary by state. A contract available in one state may not be approved in another, and rates may differ depending on local filing rules and product availability.
Premium Amount
Some annuities offer different rates or features based on the amount you invest. Higher premium tiers may qualify for enhanced pricing, while smaller deposits may have fewer options.
Optional Features and Liquidity Provisions
Products that include more flexibility, better access to funds, or certain rider-style benefits may not always offer the highest base rate. In other words, some contracts trade a bit of yield for added functionality.
The key takeaway is simple: a higher rate may reflect a longer term, a more competitive pricing strategy, a different insurer profile, or fewer built-in features. That is why comparing the full contract matters just as much as comparing the rate itself.
How To Compare Fixed Annuities Beyond the Highest Rate
As you review your options, remember that the highest advertised rate is not always the best fit. It is also important to consider the insurer’s financial strength, surrender period, and access to penalty-free withdrawals.
In some market environments, longer terms pay more because insurers can invest your premium for a longer period. In other cases, shorter or mid-range terms may be surprisingly competitive. That is why it helps to compare rates by term instead of focusing only on the single highest offer on the page.
Most buyers begin by deciding how long they are comfortable locking in their money. A 3-year or 5-year term may fit someone who wants a solid guaranteed return without committing too far into the future. A 7-year or 10-year contract may make more sense for someone who values locking in a strong rate for as long as possible.
As you compare term lengths, consider:
- How long you can leave the money in place
- Whether you may need access to principal before the surrender period ends
- How important tax-deferred growth is to your overall plan
- Whether you may want to ladder annuities over time rather than commit everything at once
Best 3 Year Fixed Annuity Rates
3 year fixed annuity rates are best for short-term goals, cash you may need on a near-term timeline, or as the first rung in a ladder strategy.
Rates shown are for informational purposes only and subject to change without notice. Products marked SI use simple interest, effective compound yield is lower than the stated rate. Minimum premiums shown are for non-qualified (after-tax) funds. Always verify current rates with a licensed annuity professional before purchasing.
Best 5 Year Fixed Annuity Rates
5-year MYGA rates typically sit in the sweet spot for most buyers. You lock in a competitive rate, enjoy tax-deferred growth, and keep options open at maturity.
Rates shown are for informational purposes only and subject to change without notice. Products marked SI use simple interest, effective compound yield is lower than the stated rate. Minimum premiums shown are for non-qualified (after-tax) funds. Always verify current rates with a licensed annuity professional before purchasing.
Best 7 Year Fixed Annuity Rates
7 year fixed annuity rates often carry a slight rate premium over 5-year options. Best for money you can leave untouched beyond the penalty-free amount.
Rates shown are for informational purposes only and subject to change without notice. Products marked SI use simple interest, effective compound yield is lower than the stated rate. Minimum premiums shown are for non-qualified (after-tax) funds. Always verify current rates with a licensed annuity professional before purchasing.
Best 10 Year Fixed Annuity Rates
10 year fixed annuity rates can offer the most attractive yields for long-term savers or pre-retirees laddering maturities into their retirement window.
Rates shown are for informational purposes only and subject to change without notice. Products marked SI use simple interest, effective compound yield is lower than the stated rate. Minimum premiums shown are for non-qualified (after-tax) funds. Always verify current rates with a licensed annuity professional before purchasing.
A simple way to shop is to first choose your preferred term range, then compare the best available products within that category by company strength, surrender schedule, and premium minimum.
Want to see how a specific investment grows? See our payout estimates: $200,000 | $250,000 | $300,000 | $400,000 | $750,000 | $1,000,000
Are Fixed Annuity Rates Expected To Go Up or Down?
No one can predict future fixed annuity rates with certainty. Rates generally move in response to interest-rate trends, bond yields, and insurer pricing decisions, which means they can change quickly when market conditions shift.
When rates are elevated, many buyers worry about locking in too soon and missing a better opportunity later. When rates begin to soften, many worry that they waited too long. The reality is that trying to perfectly time annuity purchases can be difficult, even for professionals.
A better approach is to focus on whether today’s available rates are attractive relative to your goals. If a current fixed annuity rate helps you secure guaranteed growth, fits your timeline, and supports your retirement plan, it may be worth serious consideration even if rates move somewhat afterward.
For buyers concerned about timing, laddering can be a smart strategy. Instead of placing all of your money into one contract at once, you can spread purchases across multiple terms or across different time periods. That may help reduce the risk of committing everything at a single rate level.
What matters most is not whether you captured the absolute top rate in hindsight. What matters is whether the annuity you choose supports your financial plan with the level of certainty, safety, and liquidity you need.
See a full working example in the laddering strategy section below.
Is Now a Good Time to Buy a Fixed Annuity?
Most financial professionals suggest that locking in a portion of fixed-income savings at today’s rates makes sense for anyone 5–10 years from retirement. Fixed annuity rates are sitting near their highest levels in 15 years after the Federal Reserve raised interest rates aggressively from 2022 to 2023.
Insurance companies price MYGA rates off Treasury yields, so when the Fed moved, MYGA rates followed. Those elevated rates have held through 2025 and into 2026. The top A-rated 5-year MYGA rate today is 5.65%, compared to roughly 2.5%–3.5% in 2020–2021. Whether this window stays open depends on what happens with the Fed and Treasury yields.
- Risk of waiting: If Treasury yields soften or the Fed cuts rates, MYGA rates could fall before you act. You’d lock in at a lower rate than today’s.
- Risk of buying now: Rates could climb further, leaving early buyers wishing they’d held off.
If you want to diversify your interest rate risk, you can create an annuity ladder and distribute your premium across 3-year, 5-year, and 7-year MYGAs.
What Is a Fixed Annuity?
A fixed annuity is an insurance contract that guarantees a set rate of return on your contributions over a specified period. Think of it as a deal between you and an insurance company: you hand over a lump sum (or make a series of payments), and in return, the insurer promises predictable, steady growth. Fixed annuities have become popular among retirees because they provide a safe and steady way to grow retirement savings with the added benefit of tax-deferral.

How Do Fixed Annuities Work?
Fixed annuities have two phases:
- Accumulation phase: Your money grows at a guaranteed interest rate declared by the insurer, typically locked in for one to several years before resetting.
- Payout phase: At the end of your term, you can convert your annuity into a stream of regular income payments, transfer your funds to another annuity, or take a lump-sum payment.
Key Characteristics
- Principal protection: Your original investment is shielded from market downturns.
- Tax-deferred growth: You won’t owe taxes on earnings until you withdraw them, letting your money compound more efficiently over time.
- Predictable returns: The interest rate is fixed for a contractual period, making it easy to plan around.
- Surrender periods: A surrender charge is a fee for taking an early withdrawal from an annuity contract. This fee applies if you withdraw more money than your free withdrawal amount. Surrender charges in annuities can be high. It is important to think about your cash needs before buying an annuity.
- Market Value Adjustment (MVA): A feature in fixed annuities that adjusts the surrender value if money is withdrawn early, reflecting changes in interest rates since the contract was purchased. If current rates are higher than at purchase, the MVA is negative (reducing payout); if lower, it is positive.
How is Interest Credited?
A fixed annuity usually credits interest to your account monthly; however, some insurance companies credit interest daily or annually. Similar to a CD, fixed annuity rates are set at the time you purchase the annuity and are guaranteed for the entire term.
Most fixed annuities credit compound interest, meaning the interest you earn each year is added to your account balance, and the following year you earn interest on that larger balance. Over time, this compounding effect can meaningfully accelerate your growth.
A smaller number of annuities credit simple interest instead. With simple interest, you only earn interest on your original deposit, and not on the interest you have already earned.
Here’s how that difference plays out on a $100,000 annuity at 5.90% over 5 years:
| Year | Compound Interest | Simple Interest |
|---|---|---|
| Year 1 | $105,900 | $105,900 |
| Year 2 | $112,148 | $111,800 |
| Year 3 | $118,765 | $117,700 |
| Year 4 | $125,772 | $123,600 |
| Year 5 | $133,193 | $129,500 |
| Total Gain | $33,193 | $29,500 |
Compounding produces $3,693 more over just five years on the same deposit and the same rate, a gap that widens significantly over longer terms. You can use our fixed annuity calculator to see how an annuity would grow over time.
Tax-Deferred Growth
Regardless of how interest is credited, you do not have to pay taxes on the money your annuity earns until you make a withdrawal. This tax deferral allows your full balance, including the interest, to keep growing without being reduced by an annual tax bill. This gives fixed annuities a meaningful edge over taxable alternatives like CDs.
What Factors Affect Fixed Annuity Rates?
Fixed annuity rates don’t exist in a vacuum, they’re shaped by a combination of broader economic forces and personal financial details. Understanding what drives these rates can help you time your purchase and set realistic expectations.
Interest Rate Environment The single biggest driver of fixed annuity rates is the overall interest rate environment. Insurance companies invest your premium primarily in bonds and other fixed-income assets. When the Federal Reserve raises benchmark rates, bond yields rise, and insurers can offer more competitive annuity rates in return. Conversely, when rates fall, annuity yields tend to follow.
U.S. Treasury and Corporate Bond Yields Closely tied to the Fed’s decisions, Treasury and corporate bond yields directly influence what insurers earn on their investment portfolios. Higher bond yields give carriers more room to offer attractive guaranteed rates to annuity buyers.
The Insurance Company’s Strategy and Rating: Some carriers are more aggressive in attracting new premiums and may offer higher rates to win business. Insurance companies with lower financial ratings (AM Best) usually offer higher annuity rates than A-rated companies.
The Premium Amount: Many insurers offer tiered rates based on how much you deposit. Investments of $100,000 or more usually get higher annuity rates than smaller investments in the same product.
Contract Term Length Longer surrender periods typically come with higher rates. A 10-year fixed annuity will generally offer a better rate than a 3-year product, as you’re committing your funds for a longer period.
Your State of Residence Annuity products are regulated at the state level, and some products are not available in all states. Rates can vary slightly by location due to differing regulatory requirements.
You can read our full guide if you’d like to know more about how fixed annuity rates are set.

Fixed Annuity Laddering Strategy
One of the smartest ways to maximize your fixed annuity returns while keeping flexibility is through a laddering strategy. Instead of buying a single annuity with one term length, annuity laddering involves splitting your investment across multiple fixed annuities with staggered maturity dates.
How It Works: A Real-Dollar Example
Say Jim, age 63, has $150,000 he wants to protect and grow in retirement. Instead of locking the entire amount into one 10-year annuity, he splits it into three equal contracts:
| Contract | Amount | Rate | Term | Matures |
|---|---|---|---|---|
| MYGA #1 | $50,000 | 5.50% | 3 years | 2029 |
| MYGA #2 | $50,000 | 5.90% | 5 years | 2031 |
| MYGA #3 | $50,000 | 6.30% | 7 years | 2033 |
When Jim’s first annuity becomes liquid in 2029, it will have grown to roughly $58,600. He can access this money penalty-free and reinvest, or roll it into a new annuity at whatever rates are available then. His other two contracts continue compounding tax-deferred, untouched.
Why It Makes Sense
The primary benefit of laddering is liquidity. Fixed annuities typically impose surrender charges if you withdraw funds before the contract term ends. By staggering your terms, you ensure that a portion of your money becomes accessible every few years.
Laddering also helps you manage interest rate risk. Buying a single long-term contract means you could miss out if rates rise significantly. With a ladder, your shorter-term contracts renew more often, allowing you to capture higher rates as they become available.
Who It’s Best For
This strategy works particularly well for retirees or near-retirees who want the safety and guaranteed growth of fixed annuities but don’t want their entire nest egg locked up for a decade or more. It balances the higher rates that come with longer terms against the peace of mind that comes with regular access to your money. For more side-by-side approaches, see our fixed annuity strategy comparisons.
How to Evaluate an Insurance Company Before You Buy
When you buy a fixed annuity, you’re trusting an insurance company to honor a multi-year guarantee. Unlike bank CDs, annuities are not FDIC insured. Your principal is backed by the insurer’s financial strength and your state’s guaranty association. That makes evaluating the carrier just as important as comparing rates.
Here’s how we evaluate carriers for our clients:
1. Check the AM Best rating
AM Best is the gold standard for insurance company financial strength. We recommend sticking with carriers rated A- (Excellent) or better for the majority of your annuity allocation. Higher-rated companies tend to offer slightly lower rates, while B++ carriers often lead the rate tables, that’s the trade-off.
| AM Best Rating | What It Means | Typical Rate Premium vs. A-Rated |
|---|---|---|
| A+ / A++ (Superior) | Strongest financial position; long track record | Baseline (lowest rates) |
| A / A- (Excellent) | Very strong; broad product lines; well capitalized | +0.10% to +0.30% |
| B++ (Good) | Solid but less seasoned or smaller reserves; still investment grade | +0.40% to +0.80% |
| B+ or below | Adequate but carries more risk; proceed with caution | +0.80% or more |
2. Look at more than one rating agency
AM Best is the most widely used, but S&P Global, Moody’s, and Fitch also rate insurers. If a company has strong marks across multiple agencies, that’s a good sign. If one agency rates them significantly lower than the others, dig into why.
3. Review the company’s history and assets under management
How long has the carrier been writing annuity business? A company with 50+ years of history and $100 billion in assets carries different risk than a 5-year-old startup with $2 billion. Neither is automatically better or worse, but you should know which you’re buying from.
4. Understand your state guaranty association coverage
Every state has a guaranty association that provides a safety net if an insurer becomes insolvent. Coverage limits vary by state, typically $250,000 to $500,000 per person, per carrier. If you’re investing more than your state’s limit with a single carrier, consider splitting between two companies. You can check your state’s limits at NOLHGA.com.
5. Read the contract, not just the rate sheet
The highest rate means nothing if the contract has punishing surrender charges, a harsh MVA formula, or restrictive withdrawal provisions. We review every contract we recommend and can walk you through the fine print before you sign.
What Happens When Your Fixed Annuity Matures?
One of the most common questions we hear from first-time annuity buyers is: “What happens when my term is up?” It’s a fair question, and the answer is more flexible than most people expect.
When your fixed annuity reaches the end of its guarantee period, you typically have four options:
Option 1: Renew with the same carrier
Most insurers will offer a renewal rate for another term. This rate will reflect current market conditions, it could be higher or lower than your original rate. You’ll usually have a 30-day window to decide. If you don’t take action, many contracts automatically renew at a lower “renewal rate” for a 1-year period. Don’t let this happen by default, always review your options before the term expires.
Option 2: Transfer to a new annuity via a 1035 exchange
If another carrier is offering a better rate, you can move your funds tax-free using a 1035 exchange (named after Section 1035 of the Internal Revenue Code). No taxes are triggered on the transfer. This is one of the most common moves at maturity, and we handle the paperwork for our clients at no cost.
Option 3: Take a lump-sum withdrawal
You can withdraw the full account value, your original premium plus all accumulated interest. You’ll owe ordinary income tax on the gains (but not on your original deposit, your cost basis, since that was already taxed). If you’re over 59½, there’s no IRS penalty.
Option 4: Annuitize for guaranteed lifetime income
You can convert your account value into a stream of monthly, quarterly, or annual income payments. The payout depends on your age, gender, account value, and the payment option you choose (life only, life with period certain, joint life, etc.). Once annuitized, you generally can’t change the terms, so this works best for people who want predictable income and don’t need a lump sum.
Our recommendation: Start thinking about your maturity options 60–90 days before your term ends. We send maturity reminders to every client and provide updated rate comparisons so you can make an informed decision. Already own an annuity nearing maturity? Request a free annuity review and we’ll compare your renewal rate against the full market.

The Fixed Annuity Application Process: What to Expect
If you’ve never purchased an annuity before, the process can feel opaque. Here’s exactly what happens, step by step, based on thousands of applications we’ve processed:
Step 1: Compare rates and choose a product (1–3 days)
Use the rate table above to compare products. Narrow your options based on rate, term, carrier rating, and features (free withdrawals, MVA, minimum deposit). If you want help, call us or request a personalized rate report. We will match you with products for your situation.
Step 2: Complete the application (15–30 minutes)
Annuity applications are straightforward, typically 4–8 pages. You’ll provide basic personal information, beneficiary designations, and funding details. We pre-fill most of the paperwork and walk you through each section. Many carriers now accept electronic signatures, so you can complete the entire process from home.
Step 3: Fund the annuity
You can fund a fixed annuity with:
- A personal check or wire transfer from a bank account
- A 1035 exchange from an existing annuity or life insurance policy (tax-free)
- A direct rollover from a 401(k), 403(b), or IRA (tax-free if done correctly). See our IRA to fixed annuity rollover guide for the complete transfer process.
Transfers and rollovers typically take 10–21 business days. Direct funding via check or wire is faster, usually 3–5 business days.
Step 4: Policy issue and rate lock
Once the carrier receives your application and funds, they issue the policy. Your guaranteed rate locks in on the date your money is received (not the date you signed the application). Most carriers issue policies within 1–5 business days of receiving funds.
Step 5: Free-look period (10–30 days)
Every state requires a free-look period after your policy is issued, typically 10 to 30 days depending on your state and age. During this time, you can cancel the contract and receive a full refund of your premium, no questions asked. Think of it as a “test drive” period.
Total timeline: From first inquiry to funded policy, most of our clients complete the process in 2–4 weeks. 1035 exchanges and rollovers may take slightly longer due to the releasing company’s processing time. For a deeper walkthrough of each stage, see our how to buy a fixed annuity guide.
Understanding Surrender Charges: What You’ll Pay for Early Access
Surrender charges are the trade-off for the higher rates that fixed annuities offer. The carrier guarantees your rate for the full term, and in return, they expect your money to stay put. If you withdraw more than the free amount during the surrender period, you’ll pay a penalty.
Here’s what typical surrender charge schedules look like across different term lengths:
| Year | 3-Year MYGA | 5-Year MYGA | 7-Year MYGA | 10-Year MYGA |
|---|---|---|---|---|
| Year 1 | 7% | 8% | 9% | 9% |
| Year 2 | 6% | 7% | 8% | 9% |
| Year 3 | 5% | 6% | 7% | 8% |
| Year 4 | 0% | 5% | 6% | 7% |
| Year 5 | – | 0% | 5% | 6% |
| Year 6 | – | – | 4% | 5% |
| Year 7 | – | – | 0% | 4% |
| Year 8–10 | – | – | – | 3% → 0% |
These are representative schedules. Actual charges vary by product. Always review the specific surrender schedule in your contract illustration.
What most people don’t realize: Most MYGAs include a 10% annual free withdrawal provision starting in year one or year two. This means you can pull out up to 10% of your account value each year without triggering any surrender charge. That’s $10,000 on a $100,000 annuity, enough to cover many unexpected expenses.
Some contracts also waive surrender charges entirely for:
- Terminal illness (most carriers)
- Nursing home or long-term care confinement (many carriers, after a waiting period)
- Death, your beneficiary receives the full account value with no surrender charge
- Required Minimum Distributions (RMDs), if the annuity is inside a qualified account like an IRA
How We Source Our Annuity Rates
My Annuity Store sources its fixed annuity rates (MYGA rates) through Annuity Rate Watch, a third-party annuity data provider. We connect to Annuity Rate Watch via a secure API. It is this technology that enables us to display annuity rates from so many annuity companies.
How often are annuity rates updated?
Rates on this page are refreshed automatically every 6 hours. Insurance companies can change their rates at any time, and there may be short delays between a carrier’s internal rate change and when it appears here. Before you purchase, we will verify the current rate directly with the carrier.
Availability and limitations
Not all annuity products or rates are available in every state or for every client. Actual rates and product options may vary based on your state of residence, premium amount, issue age, and product selection.
Our role and compensation
My Annuity Store, Inc. is an independent annuity brokerage. If you choose to purchase an annuity through us, we are paid a commission by the issuing insurance company. This compensation does not reduce your credited rate, account value, or annuity guarantees. For a full breakdown of how annuity compensation works, see annuity fees and commissions explained.
For full disclosures, please see the Disclosures section at the bottom of this page.
Who Should Consider a Fixed Annuity?
A fixed annuity may be worth considering for people who want guaranteed growth without market risk. These products tend to appeal most to retirees, pre-retirees, and conservative savers who want to protect principal while earning a predictable return.
You may want to consider a fixed annuity if you:
- Are nearing retirement and want to reduce volatility
- Want a portion of your savings in a guaranteed product
- Are comparing annuities to CDs or bonds
- Want tax-deferred growth
- Do not need immediate access to all of the money
- Value stability over market upside
Fixed annuities are often used to:
- Preserve retirement assets
- Create a safe accumulation bucket
- Diversify away from market exposure
- Position money for future income planning
- Lock in attractive rates when available
They are not the right fit for every dollar you own. But for the right portion of a retirement portfolio, a fixed annuity can offer a level of predictability that is difficult to find elsewhere. If you want some exposure to market upside with downside protection, compare today’s best fixed index annuity rates.
How We Source and Update Our Fixed Annuity Rates
We regularly update our fixed annuity rate tables to reflect current offers available through participating insurance companies. Rates may vary based on state availability, premium amount, issue age, product rules, and whether the contract is available at the time of your request.
When comparing products, we look at a range of factors that may include:
- Current credited rate
- Contract term
- Insurer financial strength
- Surrender schedule
- Minimum premium
- Product availability
Because annuity rates can change without notice, the rates shown on this page should be treated as current examples rather than a guarantee of future availability. A product that is available today may change tomorrow, and some contracts may not be offered in every state.
Our goal is to make fixed annuity shopping easier by presenting competitive options in a format that helps you compare rates, terms, and insurer quality more clearly. If you want help reviewing current availability or narrowing the list to products that fit your goals, we can help you compare your best options.
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Frequently Asked Questions
What are fixed annuity rates and how are they determined?
Fixed annuity rates (often called MYGA rates for Multi-Year Guaranteed Annuities) are the guaranteed interest rates insurers credit for a set term (e.g., 3, 5, 7, 10 years). Insurers set these rates based on portfolio yields, prevailing Treasury and corporate bond yields, product features, and capital requirements.
Tip: Higher rates often come with longer terms or stricter liquidity. Always review surrender schedules and any Market Value Adjustment (MVA).
What’s the difference between a fixed annuity and a MYGA?
A fixed annuity is a broad category. A MYGA is a type of fixed annuity that guarantees a level interest rate for a specific multi-year term. Other fixed annuities (like traditional fixed or fixed indexed annuities) have different crediting methods and features.
- MYGA: simple, CD-like guaranteed rate for 3-10 years.
- Traditional fixed: insurer declares rates periodically (may change after first year).
How often do fixed annuity rates change?
Fixed annuity rates can change at any time based on market conditions and insurer pricing. Most carriers update weekly or monthly, but changes can occur intra-month when yields move. We monitor and update rates on business days.
Always confirm the rate on the date your application is signed and received by the carrier.
Are fixed annuities safe?
Fixed annuities are backed by the claims-paying ability of the issuing insurer. Safety is evaluated using independent ratings (A.M. Best, S&P, Moody’s, Fitch). Higher ratings generally indicate stronger financial strength but may correlate with slightly lower headline rates.
- Check A.M. Best rating and Comdex score (e.g., A, A-, B++).
- Review company history, statutory reserves, and recent outlooks.
- Understand state guaranty association protections (limits vary by state; not FDIC).
What is a Market Value Adjustment (MVA)?
An MVA adjusts your surrender value (up or down) if you withdraw more than the free amount during the surrender period. If interest rates have risen since purchase, an MVA can reduce the value; if rates have fallen, it can increase it. MVA does not affect your guaranteed interest if you hold to term and stay within free withdrawal limits.
Can I withdraw money from a fixed annuity without penalty?
Most MYGAs allow annual free withdrawals (often 10% of account value) after the first year. Fixed annuities without free withdrawal options often offer higher fixed annuity rates.
How do fixed annuity rates compare to CD rates?
Guaranteed interest rates offered by fixed annuities are often higher than CD rates, and MYGA interest grows tax-deferred while CD interest is taxable each year. On a 5-year term today, top MYGAs run about 1.0%-1.5% above the best 5-year bank CD rates. See our full comparison at MYGA vs CD: rates, taxes, and growth.
Sources & Citations
We regularly update this page and cite primary sources, carrier filings, and regulator guidance:
- NAIC. “Buyer’s Guide for Deferred Annuities.” naic.org
- FINRA. “Investor Education: Annuities.” finra.org
- FDIC Deposit Insurance: Know Your Risk. FDIC
- IRS Publication 575 (2024), Pension and Annuity Income. IRS Publication 575