Best Fixed Annuity Rates January 2023

BEST FIXED ANNUITY RATES January 2023

Annuity rates vary based on how much you invest, the insurer’s financial rating, the length of the annuity contract, and liquidity features. Shop and compare today’s annuity rates from more than 30 top annuity companies.

Cartoon man pointing finger towards bar chart

Today's Top
Fixed Rates

4.75%
2 Year

5.53%
3 Year

5.80%
5 Years

5.35%
10 Year

Today's Best Annuity Rates

As of January 25, 2023, Ibexis offers the best fixed annuity rate of 5.80%* for a 5 year fixed annuity. Fixed annuities provide a guaranteed rate for a specified period of time and are often referred to as a “CD Type Annuity” because of their similarities to a Certificate of Deposit.

The table below lists today’s best fixed annuity rate for 2 to 10-year annuities.

*NOTE: Click on the insurance company or annuity product name for more details. You can find fixed index annuity rates here if you are looking for them instead.

Best 3 Year Annuity Rates

Atlantic Coast Life currently has the best 3 year fixed annuity rate of 5.53%.

TermInsurerAnnuityRateAM BestLiquidity
3 Years Atlantic coast life annuity logo Atlantic Coast LifeSafe Haven5.53%B++red
3 Years Oceeanview logo OceanviewHarbourview5.10%A-Green check mark
3 Years Aspida annuity logo ASPIDASynergy Choice5.10%A-Red check mark
3 Years American life logo American LifeAmerican Classic5.00%B++Green check mark
3 Years Athene annuity logo AtheneMaxRate
4.70%AGreen check mark

Best 5 Year Fixed Annuity Rates

The best 5 year fixed annuity rate today is 5.80% available in the Ibexis MYGA Plus Annuity.

TermInsurerAnnuityRateAM BestLiquidity
5 Years Ibexis annuity logo Ibexis LifeIbexis MYGA Plus5.80% SimpleA-Green check mark
5 Years Atlantic coast life logo Atlantic Coast LifeSafe Haven 55.65%B++Red check mark
5 Years Nassau logo NassauMYAnnuity5.50%B++Red check mark
5 Years Americo financial annuity logo AMERICOPlatinum Assure5.40%AGreen check mark
5 Years Athene annuity logo AtheneMaxRate5.35%AGreen check mark

Free Annuity Quote

Fill out the form below to receive a free annuity quote within 4 business hours, or use one of our annuity calculators.

Best 7 Year Annuity Rates

As of January 25, 2023, the best 7 year fixed annuity rate is 5.64% offered by Atlantic Coast Life Insurance Company. 

TermInsurerAnnuityRateAM BestLiquidity
7 yrs Atlantic coast life logo Atlantic Coast LifeSafe Harbor 5.64%B++Red check mark
7 Years Americo financial annuity logo AmericoPlatinum Assure5.50%AGreen check mark
7 Years Fidelity & guaranty life annuity logo Fidelity & GuarantyGuarantee-Platinum5.40%A-Green check mark
7 Years Athene annuity logo AtheneMaxRate5.40%AGreen check mark

Best 10 Year Annuity Rates

Atlantic Coast Life currently offers the best 10 year fixed annuity rate of 5.35% as of January 16, 2023.

TermInsurerAnnuityRateW/DsAM Best
10 Years Security sentinel life logo Sentinel SecurityPersonal Choice5.35%Red check markB++
10 Years Atlantic coast life annuity logo Atlantic Coast LifeSafe Haven5.35%redB++
10 YearsAig annuity logoAIGAmerican Pathway5.15%Green check markA
10 Years Oceanview annuity logo OceanviewHarbourview5.10%Green check markA-
10 Years Oxford life logo Oxford LifeMulti-Select5.00%Green check markA

My Annuity Store Makes Annuities Easy – Because Retirement is not Supposed to be Hard

Play Video about Video Thumbnail: My Annuity Store, Inc.

Understanding Annuity Rates

It is important to understand the different types of annuities as annuity rates and guarantees vary drastically from contract to contract.

Fixed annuities provide a fixed rate for a guaranteed period of time; usually the longer you invest the higher your rate will be.

Indexed annuity icon

Fixed Index Annuity Rates

Earn interest based on the performance of a stock market index offering more upside potential along with downside protection.

Fixed annuity rates icon

Fixed Annuity Rates

Fixed annuities interest rates are set by the insurance company and guaranteed for the initial contract term.

Immediate annuity icon

Immediate Annuity Rates

Single premium immediate annuities payments are guaranteed for life or a certain number of years.

Loss

Variable Annuity Rates

Earn investment returns based on the performance of “subaccounts." You can lose money in a variable annuity.

Annuities vs CDs

Fixed annuities work very much like a certificate of deposit (CD) but they typically provide higher guarantees than CD rates. Below are some of the similarities between the two:

  • Both pay a guaranteed rate for a set number of years
  • Both provide principal protection
  • Both typically allow free withdrawals of interest
  • Both provide full account value lump-sum death benefit
  • Fixed Annuities grow tax-deferred
  • Fixed Annuities can provide guaranteed lifetime income
  • CDs are FDIC Insured
  • Fixed Annuities are guaranteed by the claims-paying ability of the issuing life insurance company and State Guaranty Associations

CD/ Annuity Comparison Chart

FIXED ANNUITYCD
Issued ByInsurance CompaniesBanks
Investment Amount$2,000 - $1,000,000Essentially Any Amount
Investment Term2 years - 10 years3 months - 5 years
Interest Rates (APY)Varies by product.Varies by bank, term and investment amount.
LiquidityUsually, 10% annually or interest earned.Almost always accumulated interest.
GuaranteesBacked by Insurer & State Guaranty Associations.Backed by the FDIC.
Death BenefitMay avoid probate.Probate process required.

The Federal Reserve and Interest Rates

Federal reserve building

Current annuity rates often mirror the interest rates available in bonds. When bond rates increase, annuity rates usually go up as well.

Annuity rates are influenced by 10 Year Treasury rates because insurance companies invest a lot of their money in high-quality bonds.

The Federal Reserve signaled it would begin steadily raising interest rates in mid-March, its latest step toward removing stimulus to bring down inflation.

Last week’s data showed that US consumer prices are rising at the fastest pace since the early 1980s. This has led to speculation that the Federal Reserve will raise interest rates by 0.5% at its next meeting.

Fed Chairman Jerome Powell said Wednesday that the central bank was ready to raise rates at its March 15-16 meeting and could continue to lift them faster than it did during the past decade.

Related Reading
Federal mint building : fed rate hikes are good for annuities

Annuity Rates Are Increasing In 2022

One of the most common questions we get is, “Will annuity rates rise in 2022”? Finally, the answer is “Yes, annuity rates are going to go up in 2022, and soon!”

Today's Best Fixed Annuities

Best Fixed Annuity Companies

The table below the details 10 best U.S. fixed annuity companies by sales. When buying a deferred annuity, factor in the life insurance company’s financial ratings.

Insurance CompanyA.M. Best
Rating
Comdex
Score
2019 Fixed
Annuity Sales
Global Atlantic Financial GroupA75$4,684,876
New York LifeA++100$9,863,105
AIG CompaniesA82$7,237,372
Massachusetts Mutual LifeA++98$3,854,866
Pacific LifeA+93$2,873,727
Principal Financial GroupA91$2,844,881
Western Southern GroupA+96$2,468,257
Symetra FinancialA82$2,103,435
MetLifeA+95$1,443,005
Great AmericanA82$1,403,162
Related Reading
Best fixed annuity companies 2019 analyst writing on investment charts

Best Fixed Annuity Companies

Best Fixed Annuity Companies Despite our ultra-low interest rate environment – fixed annuity sales set a record last year. In this article, we’ll list the top 10 fixed annuity companies based on …

What is a Fixed Annuity?

Fixed annuities offer a guaranteed rate of return for a set period of time. For example, when you buy a 5-year annuity your interest rate is guaranteed for the length of the contract but a new rate is declared at the end of the annuity.

The fixed annuity contract will explain whether, how, and when this can happen. Although the word “fixed” might suggest otherwise, the interest rate on a fixed annuity can change over time.

How Are Annuities Taxed?

The interest you earn in an annuity grows tax-deferred which means you don’t have to pay taxes on your earnings until you take it out of the annuity.

Generally speaking, earnings from annuities are taxed at your ordinary income tax rate using the LIFO (last in first out) method 

Roth IRA Annuity Taxation
A Roth IRA annuity is treated like an ordinary Roth IRA and you will not pay taxes.

Qualified Annuity Taxation
Any annuity purchased with qualified funds, like a 401(k) or IRA, is considered a qualified annuity. Qualified funds are monies that you have never paid taxes on such as a traditional IRA or a traditional 401(k).

When you begin to make withdraws from a qualified annuity you will pay normal federal income taxes.

Non-Qualified Annuity Taxation
A non-qualified annuity is an annuity that is not purchased with tax-advantaged funds, such as from a 401(k) or IRA. You will only pay tax on your earnings with you withdraw your money.

Related Reading
Are annuities taxable page picture of older gentleman look at income tax forms

Are Annuities Taxable?

The deciding factor on how your annuity will ultimately taxed depends ultimately on the money you used to buy it.

Fixed Annuity Pros and Cons

Pros

  • Guaranteed Annuity Rates
  • Grow Tax-Deferred
  • Principal Protection
  • You can exchange your fixed annuity for a new one via a 1035 Exchange 
  • The most simple type of annuity
  • Usually provide some liquidity
  • Low investment minimums
  • Full account value passes directly to your loved ones at death

Cons

  • Withdrawals before age 59½ may have a 10% IRS penalty
  • Offer limited lifetime Income Options
  • Surrender charges for excess withdrawals during the initial surrender period
  • Fixed annuities don’t offer equity-type returns  
  • Limited Liquidity
  • Annuity rates may not keep up with inflation
Related Reading
Fixed index annuity pros and cons my annuity store, inc. Hourglass with my annuity store logo and a jar of cash sitting on a table.

Fixed Index Annuity Pros and Cons

Fixed Index Annuity Pros and Cons How to Guide in 2023: Independent, Unbiased and Transparent insights without industry jargon.

Frequently Asked Questions

Annuities are not insured by the FDIC. Instead, they are backed by the claims-paying ability of the issuing life insurance company and by State Guaranty Associations.

Fixed annuities do not have annual fees in general. However, there are some fixed annuity products that offer optional income riders, death benefit riders, or long-term care riders for an additional annual fee.

Yes, you can buy a 5 year annuity. A 5 year fixed annuity is an annuity contract with a five-year surrender charge schedule (CDSC). When you purchase a 5-year fixed annuity the interest rate is guaranteed for the initial 5-year contract period and you agree to keep the annuity for the 5-year contract term.

The highest paying annuity rates as of Januaray 24, 2023, are:

2-Year: 4.75%
3-Year: 5.53%
4-Year: 5.15%
5-Year: 5.80%
6-Year: 5.45%
7-Year: 5.64%
8-Year: 5.00%
9-Year: 5.00%
10-Year: 5.35%

Table of Contents
    Add a header to begin generating the table of contents

    What Our Clients Are Saying

    It has been a complete pleasure to deal with Kiara on several occasions opening new annuities. She has a wonderful personality and most importantly has my best interests in mind. She makes sound and knowledgeable investments.
    Chris Lehmann
    I would highly recommend My Annuity Store and Kiara for your annuity investment needs. They are very helpful and knowledgeable.
    Paula Ohalloran
    I worked with Jason and Kiara setting up an annuity. They went over and above expectations. They got me the best deal and were very fast getting all the papers in order via 2 day ups. I will be working with them in the near future. Exellent service!
    Richard Miles
    Jason is very knowledgeable in his field and clearly explained all my questions and helped with an easy transition of my funds into a new annuity with a higher interest rate. Jason keeps me up to date with changes in the market and information on better products.
    Kevin Pourmaleki
    I used My Annuity Store, Inc. for the first time and had a smooth and pleasant experience. Kiara Caudill was responsive, personable and quickly found me the best yield rates out in the market to meet my type of investment. Closing the deal was fast and simple as well, Kiara handled the bulk of the application process simplifying a few quick and easy signing steps on my end.
    Bill Harner
    I recently opened 2 annuities with Jason. Everything was explained and handled in a very professional manner. Was processed very quickly without any problems. Would highly recommend Jason for any of your annuity needs. Richard Clark
    Richard Clark
    Did business with My Annuity Store, Inc. for two annuities. Worked with Kiara both times. She was very informative and will keep you informed throughout the process. You will be very pleased with them.
    Gerald Wolfe
    I had very positive end-to-end experience with My Annuity Store. They were very transparent about various options I had, and did their best to explain the rather complicated terminology in different annuity schemes. It was very satisfactory collaboration till the end.. Thsnks!
    Satisha Bhat

    As Seen On:

    Nbc logo
    Abc logo
    Fox logo
    Marketwatch logo
    Investopedia logo
    Cbs logo

    Related Content

    An elderly retired couple sitting on a bench with their back towards us. My annuity store annuity company directory.

    Nationwide Secure Growth Annuity | 7 Year

    Details and review for the Nationwide Secure Growth 7-year annuity paying 5.35% for $100K+, 10% free withdrawals, & full account value at death.

    Life expectancy tables

    Nationwide Secure Growth 5

    The Nationwide Secure Growth 5 Annuity is an individual, single-purchase payment, deferred fixed annuity designed for long-term savings.

    Bread savings cd rates vector

    Ibexis MYGA Plus Annuity | Up to 5.80% for 5 Years

    Ibexis MYGA Plus is an innovative annuity product that combines a daily guaranteed interest crediting method with an Indexed Linked Option.

    North american guarantee plus 5 annuity brochure cover

    North American Guarantee Plus 3

    North American Guarantee Plus Annuity can help protect your retirement savings, while also offering the potential for higher interest rates.

    Scroll to Top

    Join Our Newsletter

    Sign up and get monthly annuity rate updates sent directly to your inbox.

    Get a Free
    Annuity Quote

    My Annuity Store, Inc. BBB Business Review