Secure, tax-deferred growth. Compare top-rated MYGA rates and buy online in minutes.
*Illustrative snapshot. Click below for live updates & full comparison including carrier strength, liquidity, and renewal options.
Rates subject to change without notice. Availability & features vary by state and insurer. Guarantees are backed by the claims‑paying ability of the issuing insurance company. Not a bank product. Not FDIC insured. State guaranty association limits apply (vary by state).
Use the table below to compare live 5 year fixed annuity rates.
We recommend you use the state and age filters to see only annuity rates available to you.
The Atlantic Coast Life Safe Harbor Bonus Guarantee 6.45% annuity rate is a first-year teaser and the subsequent years drop, dragging the average down.
This carrier was recently forced to pause sales by regulators” and “If you pass away during the term, your heirs may not receive the full account value due to the lack of a standard death benefit.”
“Teaser Rate vs. Effective Yield” Table
Carrier | Advertised Rate | Real Effective Yield (YTM) | Death Benefit? | Liquidity? |
|---|---|---|---|---|
Knighthead Life | 6.30% | ~5.58% (Compound) | ✅ Yes | ❌ None |
Atlantic Coast Life | 6.45%* | 5.89% | ❌ NO | ❌ NO |
“Warning: Some websites display the ‘Year 1’ bonus rate (6.45%) as the annual rate. The actual return over 5 years is significantly lower. Additionally, this product strips out standard protections like death benefits.”
As of January 4, 2026, the best 5 year fixed annuity rate is 6.30% available in the American Gulf Anchor MYGA. For a detailed review, a downloadable brochure, and product calculators, click the product name in the table below.
You will notice in the table below that most of the best 5 year fixed annuity rates are offered by lesser rated insurance companies, and have little or no free withdrawals available. Note that Knighthead Life credits simple interest which means interest does not compound, so it’s effective yield is lower.
| Carrier / Product Name |
AM Best Rating |
Rate (Fixed) |
Free Withdrawal Yr 1 | Yr 2+ |
Action |
|---|---|---|---|---|
| KIGHTHEAD LIFE - Staysail 5 (simple interest) | A- | 6.30% | None | Apply |
| AMERICAN GULF - Anchor MYGA 5 | B++ | 6.30% | None | Apply |
| WICHITA NATIONAL LIFE - Security 5 MVA | B+ | 6.25% | None | Apply |
| AMERICAN GULF - Anchor MYGA 5 (with 10% free w/d) | B++ | 6.15% | 10% | 10% | Apply |
| REVOL-ONE - DirectGrowth 5 | B++ | 5.85% | None | Apply |
| REVOL-ONE - DirectGrowth 5 (with interest withdrawals) | B++ | 5.75% | Interest | Apply |
| KIGHTHEAD LIFE - Staysail 5 (simple interest) | A- | 5.85% | 10% | 10% | Apply |
Use our fixed annuity calculator to see how much interest you would earn in a fixed annuity. You only need to input a few pieces of information:
Results are estimates for informational purposes only.
After comparing fixed annuity rates and quotes, carefully consider these criteria to make sure a 5 year fixed annuity is the best option to meet your individual goals and objectives.
The best 5 year fixed annuity rate is currently 6.30% from carriers like Knighthead Life (A-) and American Gulf (B++); note there is no liquidity included at these rates.
Annuity company financial ratings are important because annuity contracts are guaranteed by the claims paying ability of the issuing insurance company. Prioritize carriers with strong AM Best ratings (A- or higher) for claim-paying reliability:
Fixed annuities limit early access via surrender charges (typically 5-7% year 1, declining over term), but many offer 10% annual free withdrawals after year 1:
An MVA adjusts the value of an early withdrawal based on changes in a specific interest rate index. If interest rates have risen since the annuity was purchased, the MVA will likely be a negative adjustment, decreasing your payout; if rates have fallen, it will be positive, increasing it.
The MVA is typically only applied to withdrawals that exceed any penalty-free limits or to the entire contract if surrendered before the end of a surrender period.
Full contract value almost always passes to beneficiaries upon death, often with interest credited to date. There are a few companies that do not provide full account value at death unless you add it as an option in exchange for a lower interest rate.
Longer terms yield higher rates but lock funds longer. Use this table for quick comparison:
| Term | Top Rate | Top Provider (Rating) | Best For |
|---|---|---|---|
| 3 Years | 6.00% | Mountain Life (B+) | Short-term needs, high flexibility. |
| 5 Years | 6.30% | American Gulf Anchor MYGA (B++) | Balanced growth/liquidity; current sweet spot. |
| 7 Years | 5.85% | Revol One Finacial (B++) | Mid-retirees seeking max yield without decade commitment. |
| 10 Years | 5.85% | Revol One Finacial (B++) | Long-horizon savers (e.g., under 60); highest ceiling but least liquidity. |
A 5-year fixed annuity is a financial contract between you and an insurance company that guarantees a fixed interest rate on your investment for exactly five years. Think of it as a longer-term CD with insurance company backing—your principal is protected, your rate is locked in, and your interest grows tax-deferred.
The process is straightforward:
Important ConsiderationsA five year annuity may be right for you if:
Note: When looking at any financial product, compare rates from different insurance companies. Understand all fees and surrender charges. Think about how a fixed annuity fits into your overall financial plan. We recommend you consult with a financial professional before making any decisions.
To understand where annuity rates are going, you have to look at where the Federal Reserve has been. There is a distinct relationship between the Federal Funds Rate (the red dashed line) and Fixed Annuity/MYGA rates (the blue solid line), as shown in the chart above.
When the Federal Reserve raises interest rates, new bonds issued pay higher yields. Insurance companies invest in high-quality corporate and government bonds. So when these rates are higher they pass on some of those higher yields to you with higher annuity rates.
However, this doesn’t happen overnight. As the chart illustrates, there is a “Lagging Correlation.”
From the lows of 2021, where rates hovered near 2%, we witnessed a historic climb. As the Fed battled inflation with aggressive hikes, annuity buyers entered a “Golden Age” of safe accumulation. By late 2024, MYGA rates had more than tripled.
However, the tide is beginning to turn. As we move through 2025, the chart shows the Federal Funds Rate (red line) beginning to drop. While annuity rates (blue line) held strong at their peak for a while, we are now seeing them start to inch downward. The “lag” that worked in your favor on the way up is now signaling that the peak may be behind us.
Looking ahead to 2026, most reputable financial institutions and the Federal Reserve’s own projections (the “dot plot”) suggest a continued cooling of rates.
What does this mean for you? If the Fed continues to cut rates into 2026, annuity rates will almost certainly follow suit.
The Risk of Waiting: If the trend keeps going, waiting until 2026 could mean getting a rate that is 1% to 1.5% lower than the rates today.
The Bottom Line: If you see a rate that meets your accumulation goals today, it is generally wiser to lock it in rather than gambling on a market that is trending downward.
Bonds, CDs, and fixed annuities are all conservative investments commonly used in the fixed income portion of a portfolio. It just happens that right now fixed annuity rates are higher than CD rates and most bond yields.
A fixed annuity is more of a long-term commitment than bonds or CD and they grow tax-deferred like other retirement accounts. If you would like you can quickly and easily compare the after tax returns for each using our CD vs Fixed Annuity Calculator.
Multi-Year Guaranteed Annuity (MYGA): A Multi-Year Guaranteed Annuity (MYGA) offers a fixed interest rate. This rate is guaranteed for the entire length of your contract.
Variable Annuities: Variable annuities provide an opportunity to invest your contributions in various sub-accounts tied to the performance of the stock market. This flexibility allows for potentially higher returns, but it also comes with increased risk.
Single Premium Immediate Annuity: Provides regular income payments soon after the investor purchases the contract. This usually happens within 30 days and always within 13 months.
Traditional Fixed Annuity Rates: Traditional fixed annuity rates do not promise a fixed interest rate for the whole contract. The first year’s rate is specified, and a new rate is set on each anniversary.
Fixed Index Annuity Rates: Fixed index annuity rates combine fixe annuities and variable annuities. They provide the chance for extra earnings based on how a stock market index performs with downside protection.
At maturity, you typically have several options: renew into a new term (often with a renewal rate), transfer to another annuity, take a full or partial withdrawal, or annuitize for income. Most carriers provide a 30-day window to choose before defaulting to a renewal or fixed account option per the contract.
Yes, but early withdrawals during the surrender period may incur surrender charges and market value adjustments (if applicable). Many contracts allow up to 10% penalty-free withdrawals annually, and most offer waivers for qualifying events like terminal illness or nursing care—subject to contract terms.
Earnings grow tax-deferred. Withdrawals are generally taxed as ordinary income, and if you’re under 59½, a 10% IRS penalty may apply to taxable amounts. In non-qualified contracts, taxes apply only to the earnings portion; qualified annuities are taxed based on plan rules. Consult a tax professional for your situation.
State guaranty associations provide protection up to statutory limits that vary by state and are not a substitute for an insurer’s financial strength. Coverage is not FDIC insurance. Always review carrier ratings and diversification. For specifics, contact your state guaranty association.
5-year fixed annuity rates generally move with intermediate-term bond yields and insurer portfolio returns. They may out-yield CDs of similar terms, with tax-deferred growth as an added benefit. Always compare net of surrender terms, liquidity features, and your time horizon.
Jason has distributed more than $1.5 billion in annuities over his 20 year career. His mission is to democratize access to annuities for all Americans and provide a safe and simple way to purchase an annuity.
We regularly update this page and cite primary sources, carrier filings, and regulator guidance:
Complete this interactive checklist to assess your readiness
Buying an annuity is a smart way to secure guaranteed income, but it requires careful planning and consideration. By following this step-by-step guide and using the checklist, you can confidently choose the right annuity for your retirement needs.
Remember, an annuity is a long-term commitment, so take your time to understand the product, shop around, and consult with professionals to ensure your decision is the right one for your financial future.
Important Disclosure:
The rates displayed in this comparison table are for informational purposes only and are subject to change without notice. Actual rates may vary based on individual circumstances, including age, state of residence, premium amount, and product availability. Rates are current as of [DATE] and should be verified at the time of application.
This comparison is not intended as a recommendation or endorsement of any specific insurance company or product. My Annuity Store, Inc. is an independent insurance agency and is not affiliated with or acting as a fiduciary for any insurance carrier listed. We receive compensation from insurance companies for the sale of annuity products in the form of commissions, which may vary by carrier and product.
Annuities are long-term financial products designed for retirement purposes. Early withdrawals may be subject to surrender charges, tax penalties, and other fees. Before purchasing an annuity, carefully review the product prospectus or disclosure documents and consult with a qualified financial or tax professional to determine if an annuity is appropriate for your specific situation.
Past performance and current rates are not guarantees of future results. All guarantees are backed by the claims-paying ability of the issuing insurance company.
For questions or to discuss which annuity option may be right for you, contact My Annuity Store at 855-583-1104 or info@myannuitystore.com.
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