Best Fixed Annuity Rates December 2021
A fixed annuity or Multi Yield Guaranteed Annuity (MYGA) is a tax-deferred retirement savings account that earns a specified interest rate for a set period of time similar to a CD.
A fixed annuity is essentially a CD that is issued by an insurance company instead of a bank as they provide a guaranteed interest rate principal protection. For example, if you purchase a 5-year fixed annuity with a 3.00% annuity rate, your annuity will earn 3.00% interest guaranteed for 5 years. Â
You can not lose your money in a fixed annuity due to stock market volatility because fixed annuities are an insurance product; not a stock market investment.
Fixed Annuity Rates
CD vs Fixed Annuity
Fixed annuities work very much like a certificate of deposit (CD). A fixed annuity or multi-year guaranteed annuity (MYGA) annuity rates are guaranteed for a set period of time specified at the time of purchase.
Fixed annuity rates are usually higher than bank CD rates.
| FIXED ANNUITY | CD (CERTIFICATE OF DEPOSIT) | |
|---|---|---|
| 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) | Rates vary by product but usually higher than CDs. | Varies by financial institution, term and investment amount. |
| Liquidity | Usually, 10% annually or interest earned. | Almost always accumulated interest. |
| Guarantees | Backed by claims-paying ability of issuing Insurer & State Guaranty Associations. | Backed by the FDIC up to $250,000 per depositor, per institution. |
| Death Benefit | Passed directly to the beneficiary without probate process. | Probate process required. |
Best 3 Year Fixed Annuity Rates 2021
Our top 3 year guaranteed annuity rate is 2.35% available in the Oceanview Harbourview 3. Below are our most popular 3 year annuities for November.
| Annuity Company | Rating | Annuity | Liquidity Yr 1 / Yr 2+ | Rate | Apply | |
|---|---|---|---|---|---|---|
 | Oceanview Life | A- | Harbourview 3 | 0% / 10% | 2.35% | Apply |
 | Sagicor Life Insurance | A- | Milestone MYGA 3 ($100K+) | 0% / 10% | 2.30% | Apply |
 | American Life | B++ | American Classic 3 MYGA | 0% / 10% | 2.25% | Apply |
 | Liberty Bankers | B++ | Bankers Elite 3 | None | 2.00% | Apply |
 | Western & Southern | A+ | SmartSelect ($100K+) | 10% | 1.90% | Apply |
| Liberty Bankers | B++ | Bankers 3 | Interest Only | 1.85% | Apply |
 | Fidelity & Guaranty Life | A- | FG Guarantee-Platinum 3 | Interest Only | 1.85% | Apply |
Best 5 Year Fixed Annuity Rates 2021
Our best 5 year fixed annuity rate is 3.15% as of November 4th, 2021. it is available in the Sentinel Security Life Personal Choice Annuity 5.Â
| Annuity Company | Annuity | Rate | Rating | Liquidity | Application |
|---|---|---|---|---|---|
| Sentinel Security Life | Personal Choice Annuity | 3.15% | B++ | None | Apply |
| Atlantic Coast Life | Safe Haven 5 | 3.15% | B++ | None | Apply |
| Sagicor Life Insurance | Milestone MYGA 5 ($100K+) | 3.00% | A- | None | 10% | Apply |
| Nassau Co | Nassau MYAnnuity 5 0% Free | 3.00% | B+ | None | Apply |
| SILAC | Secure Savings Elite 5 | 2.95% | B+ | None | Apply |
| American Life | American Classic 5 | 2.95% | B++ | None | 10% | Apply |
| Nassau Co | Nassau MYAnnuity 5X 10%/Free | 2.80% | B+ | 10% | Apply |
| SILAC | Secure Savings 5 | 2.70% | B+ | Interest | 5% | Apply |
| Fidelity & Guaranty | FG Guarantee-Platinum 5 | 2.45% | A- | Interest Only | Apply |
Best 7 Year Fixed Annuity Rates 2021
The best 7 year fixed annuity rate is 3.20% as of November 10th, 2021.Â
| Annuity Company | Rating | Fixed Annuity | Rate |
|---|---|---|---|
| Atlantic Coast Life | B++ | Safe Harbor | 3.22% |
| Sentinel Security Life | B++ | Personal Choice Annuity 7 | 3.20% |
| Nassau Life and Annuity | B+ | Nassau MYANassau-MYAnnuity 7 0% Free | 3.10% |
| Sagicor Life Insurance | A- | Milestone MYGA 7 ($100K+) | 3.00% |
| Oceanview Life and Annuity | A- | Harbourview 7 | 2.95% |
| Nassau Life and Annuity | B+ | Nassau MYAnnuity 7 10%/Free | 2.90% |
| Fidelity & Guaranty Life | A- | F&G Platinum 7FG Guarantee-Platinum 7 | 2.70% |
| Oxford Life Insurance | A- | Multi-Select 7 | 2.70% |
Best 10 Year Fixed Annuity Rates 2021
The highest guaranteed annuity rate today is a 10 year fixed annuity paying 3.25%.Â
| Annuity Company | AM Best | Fixed Annuity | Rate |
|---|---|---|---|
| Atlantic Coast Life | B++ | Safe Haven 10 | 3.25% |
| Sentinel Security Life | B++ | Personal Choice Annuity 10 | 3.25% |
| Oceanview Life | A- | Harbourview 10 | 3.05% |
| Oxford Life Insurance | A- | Multi-Select 10 | 2.90% |
| Guggenheim Life and Annuity | B++ | Preserve MYGA 10 $10K+ | 2.85% |
| American National | A | Palladium MYG Annuity 10 | 2.55% |
| Reliance Standard | A++ | Reliance Guarantee | 2.30% |
Popular Fixed Annuity Rates by Term
Below are today’s best guaranteed annuity rates for 2 year to 10 year annuity contracts.
Get an Annuity Quote
Complete the form below and we’ll email you a personalized annuity quote within 4 business hours. If your request is urgent contact us at (855) 583-1104 or via email at info@myannuitystore.com. You can also visit our annuity calculators page and use one of 20 calculators right now.
How are Annuities Taxed?
Interest earned in a fixed annuity grows tax-deferred which means you don’t pay taxes on the interest you earn until you withdraw it.
How are Roth IRA Annuities Taxed?
If you purchase a fixed annuity with funds from a Roth or Roth 401(k) it is very likely you won’t have to pay federal income tax at all on the money when you withdraw it from your annuity. That includes the principal and interest.
How are Qualified Annuities Taxed?
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).Â
When you begin to make withdraws from a qualified annuity you will pay normal federal income taxes. Meaning, 100% of your annuity is treated as ordinary income and 100% of the funds will be taxed when they are taken.
Non-Qualified Annuity Taxation
A non-qualified annuity is an annuity purchased with after tax-dollars such as money from savings, checking accounts, or a personal brokerage account.
If you own a non-qualified annuity, you will pay ordinary income tax on the interest you earn (gain), but will not have to pay taxes on your original premium deposit amount (cost basis).
Fixed Annuity Pros and Cons
Pros
- Provide a Guaranteed Interest Rate that is typically higher than cd rates.
- A Fixed Annuity Grows Tax-Deferred
- Principal Protection
- You can exchange your fixed annuity for a new one via a 1035 ExchangeÂ
- Fixed annuities are the most simple type of annuity
Cons
- Withdrawals Prior to Age 59½ May Have a 10% IRS penalty.
- Offer Limited Lifetime Income Options
- Surrender charges for excess withdrawals during the initial surrender period (contract term).
- While current fixed annuity rates are higher than CD rates they don’t yield equity-like returns.
US Treasury Yields
How much interest do fixed annuities pay?Â
You can use the fixed annuity calculator below and find out how much interest an annuity pays monthly or quarterly. To calculate you only need to enter:
- your investment amount
- the fixed annuity rate
- the fixed annuity contract term
Then hit CALCULATE.
By default, you’ll see what your annuity will be worth at the end of your annuity term; assuming you don’t take any withdrawals and allow the interest you earn to compound.
To see how much monthly interest a fixed annuity will pay click the “monthly tab” (to the right of the annually tab).
Best Fixed Annuity Companies
| Insurance Company | A.M. Best Rating | Comdex Score | 2019 Fixed Annuity Sales |
|---|---|---|---|
| New York Life | A++ | 100 | $9,863,105.00 |
| AIG Companies | A | 82 | $7,237,372.00 |
| Global Atlantic Financial Group | A | 75 | $4,684,876.00 |
| Massachusetts Mutual Life | A++ | 98 | $3,854,866.00 |
| Pacific Life | A+ | 93 | $2,873,727.00 |
| Principal Financial Group | A | 91 | $2,844,881.00 |
| Western Southern Group | A+ | 96 | $2,468,257.00 |
| Symetra Financial | A | 82 | $2,103,435.00 |
| MetLife | A+ | 95 | $1,443,005.00 |
| Great American | A | 82 | $1,403,162.00 |
| New York Life | Rating |
|---|---|
| A.M. Best Rating (15 possible) | A++ (1) |
| Fitch (21 possible) | AAA (1) |
| Standard & Poor's (20 possible) | AA+ (1) |
| Moody's (21 possible) | Aaa (1) |
| Comdex | 100 |
#1. Selling New York Life Fixed Annuity: New York Life Secure Term Choice II Fixed Annuity
| American General Life Insurance Company | Rating |
|---|---|
| A.M. Best Company (Best's Ratings, 15 Ratings) | A (3) |
| Moody's (Financial Strength, 21 Ratings) | A2 (6) |
| Standard & Poor's (Financial Strength, 20 Ratings) | A+ (5) |
| Fitch Ratings (Financial Strength, 21 Ratings) | A+ (5) |
| Weiss (Safety Rating, 16 Ratings) | B (5) |
| Comdex Ranking (Percentile in Rated Companies) | 82 |
#1. Selling Fixed Annuity: American Pathway Vision
| Global Atlantic Financial Group | Rating |
|---|---|
| A.M. Best Rating (15 possible ratings) | A (3) |
| Moody's (21 possible ratings) | A3 (7) |
| Fitch (21 possible ratings) | A (6) |
| Standard & Poor's (Financial Strength, 20 Ratings) | A- (7) |
| Comdex (percentile of all rating companies) | 75 |
#1. Selling Fixed Annuity: SecureFore Fixed Annuity
| Massachusetts Mutual Life Insurance Company | Ratings |
|---|---|
| A.M. Best Rating (15 possible) | A++ (1) |
| Fitch (21 possible) | AA+ (2) |
| Standard & Poor's (20 possible) | AA+ (2) |
| Moody's (21 possible) | Aa3 (4) |
| Comdex | 98 |
#1. Selling Fixed Annuity: Mass Mutual Stable Voyage
| Pacific Life Insurance Company | Rating |
|---|---|
| 700 Newport Center Dr, Newport Beach, CA 92660 | |
| A.M. Best Rating (15 possible ratings) | A+ (2) |
| Moody's (21 possible ratings) | A1 (5) |
| Fitch (21 possible ratings) | AA- (4) |
| Standard & Poor's (Financial Strength, 20 Ratings) | AA- (4) |
| Comdex (percentile of all rating companies) | 93 |
#1. Selling Pacific Life Fixed Annuity: Pacific Secure Income
#6. Principal Financial Group
| Principal Financial Group | Ratings |
|---|---|
| A.M. Best Rating (15 possible) | A+ (2) |
| Fitch (21 possible) | AA- (4) |
| Standard & Poor's (20 possible) | A+ (5) |
| Moody's (21 possible) | A1 (5) |
| Comdex | 91 |
#1. Selling Fixed Annuity: Principal Select Series Annuity
| Western & Southern Life Insurance Company | Ratings |
|---|---|
| A.M. Best Rating (15 possible) | A+ (2) |
| Fitch (21 possible) | AA (3) |
| Standard & Poor's (20 possible) | AA- (4) |
| Moody's (21 possible) | Aa3 (4) |
| Comdex | 96 |
#1. Selling Fixed Annuity: MultiVantage SeriesÂ
#8. Symetra Financial
| Symetra | Ratings |
|---|---|
| A.M. Best Rating (15 possible) | A (3) |
| Fitch (21 possible) | AA- (4) |
| Standard & Poor's (20 possible) | A (6) |
| Moody's (21 possible) | A1 (5) |
| Comdex | 82 |
#1. Selling Annuity Symetra Annuity: Select 5 Modified, Single-Premium, Fixed Annuity
| Met Life - Metropolitan Life Insurance Company | Ratings |
|---|---|
| A.M. Best Rating (15 possible) | A+ (2) |
| Fitch (21 possible) | AA- (4) |
| Standard & Poor's (20 possible) | AA- (4) |
| Moody's (21 possible) | AA3 (4) |
| Comdex | 95 |
#1. Selling Annuity: MetLife Fixed Annuity FA Fixed Deferred Annuity
| Great American Life Insurance Company | Rating |
|---|---|
| 301 E Fourth St., Cincinnati, OH 45202 | |
| A.M. Best Rating (15 possible ratings) | A+ (2) |
| Moody's (21 possible ratings) | A2 (6) |
| Standard & Poor's (20 possible ratings) | A+ (5) |
| Comdex (percentile of all rated companies) | 82 |
#1. Selling Annuity: SecureGain
Best Fixed Annuity Rates 2021
Frequently Asked Questions
Is a Fixed Annuity Safe?
Fixed annuities are not FDIC insured. Instead, they are insured by the claims paying ability of the issuing insurance company. Annuity owners are protected by the State Guaranty AssociationÂ
Does a fixed annuity have fees?
There are no fees for any of the fixed annuities listed on this page and, in general, fixed annuities do not have any fees. 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.
What is a 5 Year Fixed 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 locked in for the initial 5 year contract period and you agree to keep the annuity for the 5 year contract term.
What is the best fixed annuity rate today?
The best fixed annuity rate is 3.25% for 10 years, 3.15% for 5 years and 2.15% for 2 years as of November 4th, 2021.
What are average fixed annuity rates for November 2021?
The current average fixed annuity rates range from 2.15% for a 2 year annuity contract up to 3.25% for a 10 year fixed annuity contract. You can use one of our fixed annuity calculators to calculate your guaranteed rate of return (monthly or annually).
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Jason Caudill
Jason Caudill is passionate about annuities and the important role they play inside of a retirement portfolio. Prior to joining My Annuity Store, he spent 15 years educating financial advisors on annuity solutions as a VP of Marketing for an insurance company and as an RVP for an independent brokerage firm. During that time Jason wholesaled over $1.5 Billion in annuity contracts and he holds Series 6 and 63 Securities Licenses and is an active annuity and life insurance producer.
