Fixed Index Annuities (FIAs) offer principal protection with growth tied to a market index—without direct market losses. On this page, you can compare current FIA crediting rates (caps, participation, and spreads), see popular indexes and strategy types, and learn how to choose a product that fits your goals.
We update this page monthly so you always have current information. If you prefer a quick recommendation, call 855-583-1104 or email info@myannuitystore.com and we’ll help you narrow it down in minutes.
Today’s Fixed Index Annuity Rates
FIA rates vary by carrier, product, index, and surrender period. Use this snapshot as a starting point, then drill into product brochures and rate sheets before you buy.
Popular Indexes and Strategy Types
- S&P 500: Classic, widely understood baseline
- Volatility-Control Indexes (e.g., proprietary bank indexes): Smoother paths; often higher participation rates
- Multi-Asset Blends: Diversified rules-based indexes with dynamic volatility management
- Strategy Types:
- Annual Point-to-Point with Cap
- Annual Point-to-Point with Participation (No Cap)
- Annual Point-to-Point with Spread (No Cap)
- Monthly Sum/Monthly Average (less common today)
- 2-Year Strategies (may offer higher terms with longer reset)
Indexes Available in Fixed Index Annuities
How Fixed Index Annuities Work
Principal Protection
- Your premium is not invested directly in the market.
- You cannot lose principal due to index performance (market downturns don’t reduce your base).
Index-Linked Growth
- Interest credits are calculated based on an index method chosen each reset period.
- Carriers set caps, participation rates, or spreads—these can change at each renewal but not retroactively for completed terms.
Tax-Deferred Accumulation
- Interest grows tax-deferred inside the contract.
- Withdrawals are taxed as ordinary income; early withdrawals may incur penalties.
Liquidity and Surrender Charges
- Typical surrender schedules: 5, 7, or 10 years.
- Most contracts include 10% free withdrawals annually after the first year.
- Surrender charges and market value adjustments (MVA) may apply to excess withdrawals.
Caps vs. Participation vs. Spread—What’s the Difference?
Cap Rate
- The maximum annual interest credit for a capped strategy.
- Example: If the S&P 500 returns 12% and your cap is 7%, your credit is 7%.
Participation Rate (Par)
- You receive a percentage of the index gain with no explicit cap.
- Example: If par is 45% and the index returns 12%, credit is 5.4% before any spreads or fees.
Spread (Margin)
- A fixed percentage subtracted from the index gain.
- Example: If spread is 3% and the index returns 10%, your credit is 7%.
Pro tip: Often, volatility-control indexes pair with higher participation rates, which can be attractive in today’s rate environment.
Choosing the Right FIA for Your Goals
Time Horizon and Surrender Period
- Match the surrender period to your planned liquidity needs.
Risk Tolerance and Index Mix
- Blend strategies: part in S&P 500 par, part in a vol-control index.
Income Needs
- If lifetime income is a goal, compare rider fees, roll-up rates, and payout factors—not just accumulation rates.
Bonuses and Buy-Ups
- Upfront premium bonuses and buy-up strategies can improve terms but may increase fees or surrender periods.
Example Scenario:
A 60-year-old retiree wants principal protection with moderate growth and optional income later. A 7-year FIA with a diversified index allocation (50% S&P 500 par, 50% vol-control par) can offer balanced potential while preserving flexibility. If income is likely, evaluate an income rider’s cost versus deferring and using free withdrawals.
Top Fixed Index Annuity Companies & Notable Features
- Allianz: Multipe Income Rider options and increasing income options.
- Athene: Offers many unique volatility controlled indexes with uncapped crediting strategies.
- Nationwide: Income riders guarantee the highest income payments at many ages.
Read our best fixed index annuity companies of 2025 review.
Fixed Index Annuity FAQs
Are fixed index annuity rates fixed?
No. Fixed index annuity (FIA) crediting terms—caps, participation rates, and spreads—are declared by the carrier and can change at each renewal period. Once a term is completed, that credit is locked in and cannot be retroactively changed.
Can I lose money in a fixed index annuity?
Your principal and credited interest are protected from market losses. However, your contract value can decrease if you take withdrawals above the free-allowance, surrender early (surrender charges/MVA may apply), or if you pay optional rider fees.
How often do you update FIA rates?
We aim to refresh this page monthly and whenever carriers release significant rate changes. For the most current carrier-approved rate sheets, call 855-583-1104 or email info@myannuitystore.com.
What’s the difference between a cap, participation rate, and spread?
- Cap: The maximum annual interest credit for a capped strategy.
- Participation rate (par): The percentage of the index gain you receive, often with no explicit cap.
- Spread: A fixed percentage subtracted from the index gain before crediting interest.
Example: If the index returns 12% and your cap is 7%, your credit is 7%. If par is 45%, credit would be 5.4% before any spreads. If spread is 3% and the index returns 10%, credit is 7%.
Do fixed index annuities have fees?
Many accumulation-focused FIAs have no explicit annual policy fee. Optional riders (e.g., lifetime income, enhanced death benefit) may carry fees that reduce your contract value. Always review the product disclosure for details.
What liquidity do FIAs offer?
Most FIAs include free withdrawals (often up to 10% of the account value annually) after the first contract year. Withdrawals above the free amount during the surrender period may incur surrender charges and a market value adjustment (MVA), if applicable.
Which indexes and strategies are most popular?
Common choices include the S&P 500 and proprietary volatility-control indexes from major banks. Popular strategies include Annual Point-to-Point with a cap, participation rate (no cap), or spread, plus occasional 2-year strategies that may offer different terms.
Is a fixed index annuity better than a MYGA?
It depends on your goals. MYGAs offer a guaranteed multi-year fixed rate and simplicity. FIAs provide principal protection with index-linked growth potential, but credits vary by terms and index performance. If guaranteed rate is the priority, a MYGA may fit; if growth potential above a fixed rate appeals—with protection—consider an FIA.
How do I choose the right FIA?
Match the surrender period to your time horizon, confirm liquidity needs, and select a mix of strategies and indexes that align with your risk tolerance. If lifetime income is a goal, compare rider fees, roll-up rates, and payout factors in addition to accumulation terms.
How can I get personalized recommendations?
Call 855-583-1104 or email info@myannuitystore.com. We’ll confirm your state, objectives, and liquidity needs, then share carrier-approved rate sheets and best-fit products.
Compare FIA vs. MYGA vs. Fixed
- FIA: Principal protection, index-linked growth potential, variable annual interest credits
- MYGA: Guaranteed multi-year fixed rate; simpler, no index decisions
- Fixed (Traditional): Annual declared rate; typically more conservative Tip: If guaranteed rate is the priority, see our current MYGA rates page. If growth potential above a fixed rate appeals to you—with protection—FIA may fit.
Things to Consider
Available Indexes: The stock market indexes available in the index annuity. We have a list of available stock market indexes available at each insurance carrier for simplicity.
Duration: Typically, the longer contract you purchase the higher your guaranteed interest rate will be. But that is not the case, especially given the current inverted yield curve.
Liquidity: Most all fixed annuities have some type of annual free withdrawals, but the amount available varies by product. You’ll see most of the fixed annuities at our marketplace provide interest-only withdrawals annually. Others allow for 10% Free Withdrawals (10% of the previous year’s account value) annually.
Insurance Company’s Financial Rating: It is very important to consider an insurance company’s financial rating because it is an indicator of its ability to fulfill financial commitments to its policyholders. Usually, a lesser-rated insurance company will offer higher fixed annuity rates, but that is not always the case.
Compare FIA vs. MYGA vs. Fixed
- Call 855-583-1104 or email info@myannuitystore.com
- We’ll confirm your state availability, time horizon, liquidity needs, and risk preferences, then provide carrier-approved rate sheets and a short list of best-fit products.
