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Our Best 5 Year Fixed Annuity Rates (MYGA) November 2020
| Insurer | Product | Term | Rate | Details | |
|---|---|---|---|---|---|
 | Fidelity & Guaranty Life | FG Guarantee-Platinum 5 | 5 yrs | 2.75 | |
 | American Equity Investment | GuaranteeShield 5 | 5 yrs | 2.65 | |
 | Oxford Life Insurance Company | Multi-Select 5 | 5 yrs | 2.35 | |
 | Guaranty Income Life | Guaranty Rate Lock 5 Low Band | 5 yrs | 2.25 | |
 | Sagicor Life Insurance Company | Milestone MYGA 5 Mid Band | 5 yrs | 2.25 | |
 | The Standard | Focused Growth Annuity 5 Low Band | 5 yrs | 2.20 | |
| Guaranty Income Life | RateWise Annuity 5 Year | 5 yrs | 2.10 | |
| Reliance Standard Life | Eleos MVA | 5 yrs | 2.10 | |
 | Guggenheim Life and Annuity Company | Preserve MYGA 5 | 5 yrs | 2.10 |
Shop for the Best Fixed Annuity Rates (MYGA Rates) by Term
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Our Best 5 Year Fixed Annuity Rates for Ages 90+
| Carrier / Product Name | AM Best | Max Age | Liquidity Yr 1 | Yr 2+ | Rate | |
|---|---|---|---|---|---|
| Sagicor Life Insurance Company Milestone MYGA 5 High Band | A- | 90 | 0% / 10% | 2.80% |
| Fidelity & Guaranty Life FG Guarantee-Platinum 5 | A- | 90 | Int / Int | 2.75% |
| Sagicor Life Insurance Company Milestone MYGA 5 CA High Band | A- | 90 | 0% / 10% | 2.75% |
 | Guggenheim Life and Annuity Company Preserve MYGA 5 High Band | B++ | 90 | 0% / 10% | 2.35% |
| The Standard Focused Growth Annuity 5 High Band | A | 93 | Int / Int | 2.30% |
| Guaranty Income Life Guaranty Rate Lock 5 Low Band | B++ | 100 | 0% / 5% | 2.25% |
| Sagicor Life Insurance Company Milestone MYGA 5 Mid Band | A- | 90 | 0% / 10% | 2.25% |
| Guggenheim Life and Annuity Company Preserve MYGA 5 Low Band | B++ | 90 | 0% / 10% | 2.25% |
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)
- Deferred Annuity
Fixed 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
Best 5 Year Fixed Annuity Rates vs Best 5 Year CD Rates
As of October 15, 2020 My Annuity Store’s best 5 year fixed annuity rate was 2.90%. According to Bankrate.com the best 5 year CD rate was 1.35%; available from Delta Community Credit Union.
- If you invested $100,000 at today’s best 5 year fixed annuity rate of 2.90% it would have grown to $115,603.29 at the end of the 5 years.
- Invest the same $100,000 at today’s best 5 year CD rate of 1.35% and it would have grown to $106,982.89 at the end of 5 years.
- Investing in today’s best 5 year fixed annuity rate vs. today’s best 5 year CD rate results in an additional $8,620.40.
Interest calculation’s were calculated using the Compound Interest Calculator at Investor.gov.
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.
| FIXED ANNUITY | CD (CERTIFICATE OF DEPOSIT) | |
|---|---|---|
| SOLD BY | Insurance Companies | Banks |
| AMOUNT YOU CAN INVEST | $2,000 - $1,000,000 | Essentially Any Amount |
| INVESTMENT DURATION | 3 years - 10 years | 3 months - 5 years |
| INTEREST RATES | Varies by insurer, term and investment amount. Typically higher than CDs | Varies by financial institution, term and investment amount. |
| LIQUIDITY | Varies by insurer and annuity. Usually either 10% of account value or accumulated interest annually. | Almost always accumulated interest. |
| GUARANTEES | Backed 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 BENEFIT | Asset passed directly to beneficiary without going through the probate process | Probate process required to pass asset to heirs |
Finding the Best 5 Year Fixed Annuity Rate for You
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.
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.
Insurance Company’s Financial Rating: It is very important to consider an insurance company’s financial rating because it is an indicator of an their 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.
Fixed Annuity Frequently Asked Questions
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
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
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.
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.
Have a Specific Question?
Have a Specific Question?
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.