Best 4 Year Fixed Annuity Rates October 2020

The below table lists the best 4 year fixed annuity rates for September 2020. 

InsurerAnnuityTermRate
Oxford Life Insurance CompanyMulti-Select 44 yrs2.40%
Guaranty Income LifeGuaranty Rate Lock 4 Low Band4 yrs2.15%
Guaranty Income LifeGuaranty 4 Annuity4 yrs2.00%
Integrity Life Insurance CompanyMultiVantage 44 yrs2.00%
National Integrity Life InsuranceMultiVantage 44 yrs2.00%
Guaranty Income LifeGuaranty Rate Lock 4 (Non MVA) Low Band4 yrs1.90%
Guggenheim Life and Annuity CompanyPreserve MYGA 4 Low Band4 yrs1.80%
Sagicor Life Insurance CompanyMilestone MYGA 4 Mid Band4 yrs1.80%
American General Life Insurance CompanyAmerican Pathway VisionMYG 4 Low Band4 yrs1.45%

Fixed Annuity vs. CD's

Fixed annuities are work very much like a certificate of deposit (CD). Both a fixed annuity and a CD provide principal protection, meaning your account value will not decrease due to market performance.

 A fixed annuity, or MYGA, guarantees a set interest rate for a specified period of time – just like a CD. However, Fixed annuity guarantees are backed by the claims paying ability of the issuing insurance company and are not insured by the FDIC like a CD.

While not FDIC insured, State Insurance Guaranty Associations provide a safety net for their state’s annuity policyholders. These Guaranty Associations guarantee policyholders continue to receive coverage (up to the limits spelled out by state law) even if their insurer is declared insolvent. 

You can view your states limits at our State Guarantee Associations Explained page.

 FIXED ANNUITYCD (CERTIFICATE OF DEPOSIT)
SOLD BYInsurance CompaniesBanks
AMOUNT YOU CAN INVEST$2,000 - $1,000,000Essentially Any Amount
INVESTMENT DURATION3 years - 10 years3 months - 5 years
INTEREST RATESVaries by insurer, term and investment amount. Typically higher than CDsVaries by financial institution, term and investment amount.
LIQUIDITYVaries by insurer and annuity. Usually either 10% of account value or accumulated interest annually.Almost always accumulated interest.
GUARANTEESBacked by the claims paying ability of issuing Insurer and by State Guaranty Funds.Backed by the FDIC up to $250,000 per depositor, per institution.
DEATH BENEFITAsset passed directly to beneficiary without going through the probate processProbate process required to pass asset to heirs

What is a Fixed Annuity?

A fixed annuity is essentially a Certificate of Deposit (CD) sold by an insurance company instead of a bank. Fixed annuities pay a guaranteed rate of return for a specified period of time (usually 3-10 years).

In addition to providing a guaranteed rate of return for the investment term, fixed annuities, and all annuities, give you the opportunity to turn those savings into lifelong pension-like income. The fixed annuity guarantee is backed by the financial strength of the issuing insurance company.

IMPORTANT NOTE: You have likely heard of a fixed annuity referred to as any of these other names:

    • CD type annuity
    • Multi Year Guaranteed Annuity (MYGA)
    • Single Premium Deferred Annuity (SPDA)
    • Traditional Fixed Annuity
    • Flexible Premium Deferred Annuity (FPDA)

In this guide, we’ll tell you everything you need to know about fixed annuities – how they work, what to look for when shopping, and how to evaluate whether using them to grow your retirement savings makes sense for you.

Annuity Definition:

With a fixed annuity, the insurance company guarantees both the rate of return (the interest rate) and the payout to the investor. Although the word “fixed” might suggest otherwise, the interest rate on a fixed annuity can change over time. The contract will explain whether, how and when this can happen. Often the interest rate is fixed for a number of years and then changes periodically based on current rates. Payouts can be for an entire lifetime, or you can choose another time period.  

Source: “Learn to Invest, Investment Types, Annuities, Fixed Annuities.”  Financial Industry Regulatory Authority (FINRA).  Visit FINRA’s Fixed Annuities Webpage

Illustration of woman with money going into safe and then the money coming out and the woman has aged

Fixed Annuity FAQs

Yes. Insurance companies as a whole have a long history of stability, even through our nation’s most difficult economic times. Fixed annuities, unlike variable annuities, are backed by the full faith and credit of the issuing insurance company.

A CD-type annuity is an industry coined term to describe a multi-year guarantee annuity. The interest rate is guaranteed in advance for a set number of years, similar to a bank CD.

In the broadest terms, an annuity is a contract between you and an insurance company, where you make a premium payment(s) in exchange for the benefits defined in the contract.

With fixed annuities, there are no fees, upfront loads or sales charges. 100% of your money goes into your contract without any expense to you. The only time you might experience a fee, is if you choose to add an optional rider that comes with a cost.

Fixed Annuity Shopping Tips

Fixed annuities, or MYGAs, are the simplest of all annuities making them the easiest variety to shop for and compare. However, there are still a few important items to consider besides just looking for the highest guaranteed rate of return. Our Ultimate Guide to Fixed Annuities is a great resource if you’d like to take a deeper dive into fixed annuities.

Duration: Typically the longer contract you purchase the higher your guaranteed interest rate will be. But that is not the case, especially given the current inverted yield curve. 

Liquidity: Most all fixed annuities have some type of annual free withdrawals, but the amount available varies by product. You’ll see most of the fixed annuities at our marketplace provide interest-only withdrawals annually. Others allow for 10% Free Withdrawals (10% of previous years account value) annually. 

Insurer Company’s Financial Rating: An indicator of an insurers’ ability to fulfill financial commitments to it’s policyholders. Usually, a lesser rated insurance company will offer higher fixed annuity rates, but that is not always the case. 

 

Our Insurance Company Financial Ratings Explained page is a great resource if you’d like to learn more about the main insurance company rating agencies and their corresponding ratings.

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Annuities are distributed by My Annuity Store, Inc. Guarantees are subject to the claims-paying ability of the insurer. My Annuity Store, Inc. does not advise clients on the purchase of non-fixed annuity products. The information presented here is not intended to be a recommendation to purchase a fixed annuity, fixed index annuity, variable annuity, registered index linked annuity (RILA), immediate annuity (SPIA), longevity annuity, or Qualified Longevity Annuity Contract (QLAC). 

The contract features described may not be current and may not apply in the state in which you reside. Insurance companies often issue contracts which are ‘state-specific’. Insurance companies also change their products and information often and without notice. Annuities are subject to the terms and conditions of the specific contract issued by the insurer, are not FDIC or NCUA insured, are not bank guaranteed, may lose value, and are not a deposit. Please call (855) 583-1104 if you have any questions or concerns.

 The information presented here is not a representation regarding the suitability of any concept or product(s) for an individual and it does not provide tax or legal advice. You should always consult your own financial planning, tax, and legal advisors to determine if a fixed annuity, immediate annuity, longevity annuity, or Qualified Longevity Annuity Contract are suitable in your financial situation.