As of September 27, 2022, Ibexis Life and Annuity Insurance Company has the best fixed annuity rate of 5.10% for a five year fixed annuity.
Fixed annuities provide a guaranteed interest rate for a specified period of time. They are often referred to as a “CD Type Annuity” because of its’ similarities to a Certificate of Deposit.
Below are September’s best guaranteed annuity rates by contract term.
| Years | Insurer | Annuity | Rate | AM Best | Liquidity | ||
|---|---|---|---|---|---|---|---|
| 2 |  | ASPIDA | Synergy Choice | 3.55% | A- |  | |
| 3 | | ASPIDA | Synergy Choice | 4.20% | A- | | |
| 4 | 
| Nassau | Simple Annuity | 4.35% | B++ |  | |
| 5 | 
| Ibexis | Ibexis MYGA Plus | 5.10% | A- | | |
| 6 | 
| Oceanview | Harbourview | 4.80% | A- | | |
| 7 | 
| Atlantic Coast Life | Safe Harbor | 4.72% | B++ | | |
| 8 | 
| Oxford Life | Multi-Select | 4.50% | A | | |
| 9 | 
| Oxford Life | Multi-Select | 4.35% | A | | |
| 10 | 
| Sentinel Security | Personal Choice | 4.75% | B++ | | |
*NOTE: Click on the insurer or annuity product name for more details. You can find fixed index annuity rates here if you are looking for them instead.
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The best 3 year guaranteed annuity rate is 4.20%. Below are today’s best 3 year fixed annuity rates as of September 27, 2022.
| Insurer | Annuity | Rate | AM Best | Liquidity | ||
|---|---|---|---|---|---|---|
| ASPIDA | Synergy Choice | 4.20% | A- | | |
| American Life | American Classic | 4.10% | B++ | | |
| North American | Guarantee Plus 3 | 4.05% | A+ | | |
| Sagicor | Milestone 3 | 3.90% | A- | | |
| Fidelity & Guaranty | Guarantee-Platinum | 3.90% | A- | |
Today’s best 5 year fixed annuity rate is 5.10% as of September 27, 2022.
| Insurer | Annuity | Rate | AM Best | Liquidity | ||
|---|---|---|---|---|---|---|
|
| Ibexis | Ibexis MYGA Plus | 5.10% | A- | | |
|
| Atlantic Coast Life | Safe Haven 5 | 4.65% | B++ | | |
|
| Nassau | MYAnnuity | 4.55% | B++ | | |
|
| ASPIDA | Synergy Choice | 4.50% | A- | | |
 | SBLI | ECAccumulate | 4.50% | A | | |
| Americo Financial | Platinum Assure | 4.40% | A | | |
|
| North American | Guarantee Plus | 4.25% | A+ | |
The best 7 year fixed annuity rate is 4.72% as of September 27, 2022.
| Insurer | Annuity | Rate | AM Best | Liquidity | ||
|---|---|---|---|---|---|---|
|
| Atlantic Coast Life | Safe Harbor | 4.72% | B++ | | |
|
| Sentinel Security | Personal Choice | 4.70% | B++ | | |
|
| ASPIDA | Synergy Choice | 4.60% | A- | | |
|
| North American | Guarantee Plus | 4.55% | A+ | | |
|
| Americo | Platinum Assure | 4.60% | A | | |
| Nationwide | Secure Growth | 4.40% | A+ | | |
| Athene | MaxRate | 4.40% | A | |
The highest 10 year guaranteed annuity rate is 4.75% as of September 27, 2022.
| Insurer | Annuity | Rate | AM Best | ||
|---|---|---|---|---|---|
|
| Sentinel Security | Personal Choice | 4.75% | B++ | |
|
| Oceanview | Harbourview | 4.50% | A- | |
|
| Oxford Life | Multi-Select | 4.50% | A | |
| Reliance Standard | Reliance Guarantee | 3.90% | A++ |
Annuity rates are important because they indicate how much you will earn on your investment in an annuity contract.
Fixed indexed annuities earn interest based on the performance of a stock market index offering more upside potential along with downside protection.
Money in a fixed annuity earns interest determined by an annuity rate set by the insurance company. A fixed annuity rate is guaranteed for the initial surrender period.
Immediate annuities are a type of annuity that provides guaranteed payments for a specific period of time. The payments are based on factors such as your age and income payment options.
Variable annuities earn investment returns based on the performance of “subaccounts." You can lose money in a variable annuity.
| Features | Variable Annuity | Index Annuity | Fixed Annuity | Immediate Annuity | Longevity Annuity |
|---|---|---|---|---|---|
| Principal Protection | No | Yes | Yes | Yes | Yes |
| Liquidity Options | Yes | Yes | Yes | No | No |
| Maintain Control of Asset | Yes | Yes | Yes | No | No |
| Tax-Deferral | Yes | Yes | Yes | No | No |
| Guaranteed Rate | No | No | Yes | No | No |
| Guaranteed Income | Yes | Yes | Yes | Yes | Yes |
| Cost of Living Adjustments (COLA) | Yes | Yes | No | Yes | Yes |
| Death Benefit | Yes | Yes | Yes | Yes/No | Yes/No |
| LTC Enhancements | Yes | Yes | Yes | No | No |
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Fixed annuities work very much like a certificate of deposit (CD) but are typically higher than CD rates. Below are some of the similarities between the two:
| FIXED ANNUITY | CD | |
|---|---|---|
| Issued By | Insurance Companies | Banks |
| Investment Amount | $2,000 - $1,000,000 | Essentially Any Amount |
| Investment Term | 2 years - 10 years | 3 months - 5 years |
| Interest Rates (APY) | Varies by product. | Varies by bank, term and investment amount. |
| Liquidity | Usually, 10% annually or interest earned. | Almost always accumulated interest. |
| Guarantees | Backed by Insurer & State Guaranty Associations. | Backed by the FDIC. |
| Death Benefit | May avoid probate. | Probate process required. |
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.
If that holds true annuity rates will likely continue to go up throughout 2022.
The below table lists the 10 Best Fixed Annuity Companies by Individual U.S. Sales.
| Insurance Company | A.M. Best Rating | Comdex Score | 2019 Fixed Annuity Sales |
|---|---|---|---|
| Global Atlantic Financial Group | A | 75 | $4,684,876 |
| New York Life | A++ | 100 | $9,863,105 |
| AIG Companies | A | 82 | $7,237,372 |
| Massachusetts Mutual Life | A++ | 98 | $3,854,866 |
| Pacific Life | A+ | 93 | $2,873,727 |
| Principal Financial Group | A | 91 | $2,844,881 |
| Western Southern Group | A+ | 96 | $2,468,257 |
| Symetra Financial | A | 82 | $2,103,435 |
| MetLife | A+ | 95 | $1,443,005 |
| Great American | A | 82 | $1,403,162 |
The Nationwide Secure Growth 5 Annuity is an individual, single-purchase payment, deferred fixed annuity designed for long-term savings.
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 Annuity can help protect your retirement savings, while also offering the potential for higher interest rates.
The Sentinel Security Personal Choice 5 Annuity is a 5 Year Fixed Annuity designed to be a high-yield retirement savings account.
Review product-specific details for the Atlantic Coast Life Safe Haven 5 Annuity, access brochures, get a quote, and apply today.
Compare today’s current annuity rates including guaranteed annuity rates, immediate, fixed indexed, and premium bonus annuities.
A fixed annuity is an insurance product that pays out a guaranteed rate of return for a set period of time.
If you buy a 5-year fixed annuity your annuity rate is set for a five-year period, and a new interest rate is declared at the end of that period.
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.
You’ll have an option to withdraw your funds, transfer to a new investment vehicle or accept the new declared rate.
Source: “Learn to Invest, Investment Types, Annuities, Fixed Annuities.” Financial Industry Regulatory Authority (FINRA). Visit FINRA’s Fixed Annuities Webpage,
Pros
Cons
Under current federal law, annuities receive special tax treatment. With a deferred annuity, you don’t have to pay taxes on the interest it earns until you withdraw the money.
An advantage of tax deferral is your earnings don’t count towards your taxable income giving you the option to defer paying taxes until you are in retirement and likely at a lesser marginal tax rate.
Most states’ tax laws on annuities follow federal law. You should consult a professional tax advisor to discuss your individual tax situation.
Roth IRA Annuity Taxation
If you buy an annuity using a Roth or Roth 401(k) you likely will not pay federal income tax at all.
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.
Fixed 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.
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.
The best-fixed annuity rate today is 4.75% available in a 10-year annuity; 4.65% for a 5-year annuity, 4.20% for a 3-year fixed annuity, and 3.55% for a 2-year annuity (as of September 11h, 2022.).
https://www.wsj.com/articles/fed-tees-up-march-interest-rate-increase-11643223603
https://www.federalreserve.gov/releases/h15/
Source: LIMRA Secure Retirement Institute U.S. Individual Annuities Sales Survey
“Buyers Guide for Deferred Annuities: Fixed Annuities 2013.” © 1999, 2007, 2013 National Association of Insurance Commissioners.