Fixed annuities are designed for long-term financial goals.Fixed annuity rates are guaranteed for the length of the contract you choice - and you don't have to pay taxes until you withdraw your funds.
*Illustrative snapshot. Click below for live updates & full comparison including carrier strength, liquidity, and renewal options.
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).
Compare today’s best 5 year fixed annuity rates in the table below. Click on the product name for a detailed review, downloadable brochure, and product specific calculators.
| Carrier / Product Name |
AM Best Rating |
Rate (Fixed) |
Free Withdrawal Yr 1 | Yr 2+ |
Action |
|---|---|---|---|---|
| KIGHTHEAD LIFE - Staysail 5 (simple interest) | A- | 6.30% | None | Apply |
| AMERICAN GULF - Anchor MYGA 5 | B++ | 6.30% | None | Apply |
| WICHITA NATIONAL LIFE - Security 5 MVA | B+ | 6.25% | None | Apply |
| AMERICAN GULF - Anchor MYGA 5 (with 10% free w/d) | B++ | 6.15% | 10% | 10% | Apply |
| REVOL-ONE - DirectGrowth 5 | B++ | 5.85% | None | Apply |
| REVOL-ONE - DirectGrowth 5 (with interest withdrawals) | B++ | 5.75% | Interest | Apply |
| KIGHTHEAD LIFE - Staysail 5 (simple interest) | A- | 5.85% | 10% | 10% | Apply |
Currently, a 5 year annuity from a life insurance company with a B+ Best Rating is 1.70% higher than the best rate from an A++ rated company. – A 1.70% difference!
| Carrier / Product Name |
AM Best Rating |
Rate (Fixed) |
Free Withdrawal Yr 1 | Yr 2+ |
Action |
|---|---|---|---|---|
| RELIANCE STANDARD LIFE - Eleos MVA 5 | A++ | 4.60% | 10% / 10% | Apply |
| NATIONWIDE LIFE INSURANCE CO - Secure Growth 5 MVA | A+ | 4.90% | 10% / 10% | Apply |
| AMERICO - Platinum Assure 5 | A | 5.35% | 5% | 5% | Apply |
| KIGHTHEAD LIFE - Staysail 5 (simple interest) | A- | 6.30% | None | Apply |
| AMERICAN GULF - Anchor MYGA 5 | B++ | 6.30% | None | Apply |
| WICHITA NATIONAL LIFE - Security 5 MVA | B+ | 6.25% | None | Apply |
Financial ratings: The highest rates often come from insurers with lower financial ratings, which can indicate higher risk.
Rates and features vary by state: Not all rates are available in all states, and features, benefits, and liquidity options can vary widely.
Liquidity: Some fixed annuities offer 10% free withdrawals or interest-only withdrawals annually, while others are illiquid and penalize early withdrawals.
Shop around: Compare multiple insurers and consider consulting a licensed annuity professional to align products with your goals and risk tolerance.
Simple vs. compound interest: Many fixed annuities use compounding, but not all. If you aren’t taking withdrawals, compounding can significantly boost growth over time.
A 5-year fixed annuity is a contract between you and the insurance company. The insurance company pays you a guaranteed interest rate for a set number of years that you decide.
The guaranteed rate, principal protection, and tax-deferral have made annuities very popular over the last decade. In fact, total U.S annuity sales were $119.3 billion in the third quarter of 2025, setting a new quarterly sales record – the all time record!
Deferred annuities have limited liquidity but many have free withdrawal provisions that allow you to take out 10% of your account value each year, or the interest earned. This is important to note because surrender penalties can be quite steep.
A typical surrender charge would start at 9% in the first contract year and then decrease each year. So, 9%, 8%, 7%, 6%, and then 5% in the fifth and final year. Below are the key factors to consider when considering a fixed annuity.
Bonds, CDs, and fixed annuities are all conservative investments commonly used in the fixed income portion of a portfolio. It just happens that right now fixed annuity rates are higher than CD rates and most bond yields.
A fixed annuity is more of a long-term commitment than bonds or CD and they grow tax-deferred like other retirement accounts. If you would like you can quickly and easily compare the after tax returns for each using our CD vs Fixed Annuity Calculator.
At maturity, you typically have several options: renew into a new term (often with a renewal rate), transfer to another annuity, take a full or partial withdrawal, or annuitize for income. Most carriers provide a 30-day window to choose before defaulting to a renewal or fixed account option per the contract.
Yes, but early withdrawals during the surrender period may incur surrender charges and market value adjustments (if applicable). Many contracts allow up to 10% penalty-free withdrawals annually, and most offer waivers for qualifying events like terminal illness or nursing care—subject to contract terms.
Earnings grow tax-deferred. Withdrawals are generally taxed as ordinary income, and if you’re under 59½, a 10% IRS penalty may apply to taxable amounts. In non-qualified contracts, taxes apply only to the earnings portion; qualified annuities are taxed based on plan rules. Consult a tax professional for your situation.
State guaranty associations provide protection up to statutory limits that vary by state and are not a substitute for an insurer’s financial strength. Coverage is not FDIC insurance. Always review carrier ratings and diversification. For specifics, contact your state guaranty association.
5-year fixed annuity rates generally move with intermediate-term bond yields and insurer portfolio returns. They may out-yield CDs of similar terms, with tax-deferred growth as an added benefit. Always compare net of surrender terms, liquidity features, and your time horizon.
Glossary of Terms
Understanding these key terms helps you make informed decisions and avoid surprises.
Guaranteed Interest Rate
This is the fixed rate the insurance company promises to pay for your entire five-year term. It’s stated in your contract and cannot be changed.
Surrender Period and Charges
The surrender period is the time period surrender charges are applied to early withdrawals. The surrender period is equal to the length of the annuity contract, so five years for a 5-year annuity.
Free Withdrawal Provisions
These are the amounts you can withdraw each year without triggering surrender charges. The most common provisions are 10% of your account value annually, or free withdrawals of your interest earned.
Renewal Rates
When your five-year term ends, if you don’t take action, most annuities automatically renew at the company’s current rates. Typically, you have a 30-day window to make a decision, so plan ahead.
Annuitization Options
Annuitization is the process of converting a lump sum into a stream of guaranteed income payments. It is a requirement that all fixed annuity contracts offer an annuitization option at maturity.
Death Benefit
If you die during the five-year term, your beneficiaries receive the annuity’s current value (your original deposit plus accumulated interest). Most contracts waive surrender charges upon death, but some require the beneficiary to hold the annuity to the end of the surrender period.
Jason has distributed more than $1.5 billion in annuities over his 20 year career. His mission is to democratize access to annuities for all Americans and provide a safe and simple way to purchase an annuity.
We regularly update this page and cite primary sources, carrier filings, and regulator guidance:
Important Disclosure:
The rates displayed in this comparison table are for informational purposes only and are subject to change without notice. Actual rates may vary based on individual circumstances, including age, state of residence, premium amount, and product availability. Rates are current as of [DATE] and should be verified at the time of application.
This comparison is not intended as a recommendation or endorsement of any specific insurance company or product. My Annuity Store, Inc. is an independent insurance agency and is not affiliated with or acting as a fiduciary for any insurance carrier listed. We receive compensation from insurance companies for the sale of annuity products in the form of commissions, which may vary by carrier and product.
Annuities are long-term financial products designed for retirement purposes. Early withdrawals may be subject to surrender charges, tax penalties, and other fees. Before purchasing an annuity, carefully review the product prospectus or disclosure documents and consult with a qualified financial or tax professional to determine if an annuity is appropriate for your specific situation.
Past performance and current rates are not guarantees of future results. All guarantees are backed by the claims-paying ability of the issuing insurance company.
For questions or to discuss which annuity option may be right for you, contact My Annuity Store at 855-583-1104 or info@myannuitystore.com.
