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.
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.
| Term | Annuity | Rate | AM Best | W/Ds | ||
|---|---|---|---|---|---|---|
| 2 Years | SILAC | Secure Savings Elite | 4.75% | B+ |  | |
| 3 Years | Atlantic Coast Life | Safe Haven | 5.53% | B+ | | |
| 4 Years | Americo | American Pathway | 5.15%% | A |  | |
| 5 Years | Ibexis | MYGA Plus | 5.80% Simple | A- | | |
| 6 Years | Americo | Platinum Assure | 5.45% | A | | |
| 7 Years | Atlantic Coast Life | Safe Harbor | 5.64% | B++ | | |
| 8 Years | Oxford Life | Multi-Select | 4.95% | A | | |
| 9 Years | Oxford Life | Multi-Select | 4.95% | A | | |
| 10 Years | Atlantic Coast Life | Safe Haven | 5.35% | B++ | |
*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%.
| Term | Insurer | Annuity | Rate | AM Best | Liquidity | ||
|---|---|---|---|---|---|---|---|
| 3 Years | 
| Atlantic Coast Life | Safe Haven | 5.53% | B++ |  | |
| 3 Years | 
| Oceanview | Harbourview | 5.10% | A- | | |
| 3 Years | 
| ASPIDA | Synergy Choice | 5.10% | A- | | |
| 3 Years | 
| American Life | American Classic | 5.00% | B++ | | |
| 3 Years | 
| Athene | MaxRate | 4.70% | A | |
Best 5 Year Fixed Annuity Rates
The best 5 year fixed annuity rate today is 5.80% available in the Ibexis MYGA Plus Annuity.
| Term | Insurer | Annuity | Rate | AM Best | Liquidity | ||
|---|---|---|---|---|---|---|---|
| 5 Years | 
| Ibexis Life | Ibexis MYGA Plus | 5.80% Simple | A- | | |
| 5 Years | 
| Atlantic Coast Life | Safe Haven 5 | 5.65% | B++ | | |
| 5 Years | 
| Nassau | MYAnnuity | 5.50% | B++ | | |
| 5 Years | 
| AMERICO | Platinum Assure | 5.40% | A | | |
| 5 Years |
| Athene | MaxRate | 5.35% | A | |
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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.
| Term | Insurer | Annuity | Rate | AM Best | Liquidity | ||
|---|---|---|---|---|---|---|---|
| 7 yrs |
| Atlantic Coast Life | Safe Harbor | 5.64% | B++ | | |
| 7 Years |
| Americo | Platinum Assure | 5.50% | A | | |
| 7 Years | 
| Fidelity & Guaranty | Guarantee-Platinum | 5.40% | A- | | |
| 7 Years |
| Athene | MaxRate | 5.40% | A | |
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.
| Term | Insurer | Annuity | Rate | W/Ds | AM Best | ||
|---|---|---|---|---|---|---|---|
| 10 Years | 
| Sentinel Security | Personal Choice | 5.35% | | B++ | |
| 10 Years |
| Atlantic Coast Life | Safe Haven | 5.35% | | B++ | |
| 10 Years |  | AIG | American Pathway | 5.15% | | A | |
| 10 Years | 
| Oceanview | Harbourview | 5.10% | | A- | |
| 10 Years | 
| Oxford Life | Multi-Select | 5.00% | | A |
My Annuity Store Makes Annuities Easy – Because Retirement is not Supposed to be Hard
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.
Earn interest based on the performance of a stock market index offering more upside potential along with downside protection.
Fixed annuities interest rates are set by the insurance company and guaranteed for the initial contract term.
Single premium immediate annuities payments are guaranteed for life or a certain number of years.
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 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. |
The Federal Reserve and Interest Rates
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.
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 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 |
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.
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
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
Are Annuities FDIC Insured?
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.
Do Fixed Annuities Have fees?
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.
Can You Buy a 5 Year Annuity?
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.
What are today's highest paying annuity rates?
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%
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