Today’s Best Fixed Annuity Rates
As of July 2026, the best fixed annuity rates range from roughly 5.5% to 6.5% APY, depending on the term you choose and the issuing insurance company. The table below shows the single highest fixed annuity (MYGA) rate available right now for each contract length, from 2 years out to 10. Rates update daily from AnnuityRateWatch and reflect the 90+ top annuity companies we work with, so what you see is what you’d get if you bought today.
| Term | Carrier | Product | Rate | AM Best | |
|---|---|---|---|---|---|
| 2-Year | CL Life | CL Sundance 2 | 5.15% | Get Quote | |
| 3-Year | Farmers Life Insurance Company | Farmers Safeguard Plus 3 | 5.65% | Get Quote | |
| 4-Year | Clear Spring Life | Preserve MYGA 4 | 5.30% | Get Quote | |
| 5-Year | Knighthead Life | Staysail 5 (Simple Interest) SI | 6.30% | Get Quote | |
| 6-Year | American Gulf | Anchor MYGA 6 | 6.00% | Get Quote | |
| 7-Year | Knighthead Life | Staysail 7 (Simple Interest) SI | 6.50% | Get Quote | |
| 8-Year | EquiTrust Life Insurance Company | Certainty Select 8 | 5.40% | Get Quote | |
| 9-Year | Royal Neighbors of America | MYGA 9 Year CA | 5.45% | Get Quote | |
| 10-Year | Farmers Life Insurance Company | Farmers Safeguard Plus 10 | 6.05% | Get Quote |
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). Logos are property of their respective insurers; shown for educational platform availability only and do not imply endorsement.
Best Fixed Annuity Rates by Term
Fixed annuity rates are usually tied to the contract term. A 3-year annuity may offer one rate, while a 5-, 7-, or 10-year annuity may offer a different one. Longer terms often (but not always) pay higher yields.
Best 3 Year Fixed Annuity Rates
Today’s best 3-year fixed annuity rate is 5.65% in Farmers Life’s Farmers Safeguard Plus 3. A 3-year MYGA locks in a guaranteed rate for a short commitment, making it a popular choice for savers who want competitive growth without tying up their money for long. It’s often used as a safe parking spot for cash you’ll need in the near term.
| Carrier | Product | Rate | AM Best | |
|---|---|---|---|---|
| Farmers Life Insurance Company | Farmers Safeguard Plus 3 | 5.65% | Get Quote | |
| Knighthead Life | Staysail 3 (Simple Interest) SI | 5.60% | Get Quote | |
| Revol One Financial | DirectGrowth 3 | 5.55% | Get Quote | |
| CL Life | CL Sundance 3 | 5.50% | Get Quote |
Best 5 Year Fixed Annuity Rates
Today’s best 5-year fixed annuity rate is 6.30% in Knighthead Life’s Staysail 5 (Simple Interest). 5-year annuities accounted for 37% of My Annuity Store’s sales in 2025, making them the most popular duration, with 7-year contracts second at 22%. The 5-year term strikes a balance between a strong guaranteed rate and a reasonable surrender period.
| Carrier | Product | Rate | AM Best | |
|---|---|---|---|---|
| Knighthead Life | Staysail 5 (Simple Interest) SI | 6.30% | Get Quote | |
| Knighthead Life | Staysail 5 CA (Simple Interest) SI | 6.20% | Get Quote | |
| American Gulf | Anchor MYGA 5 | 6.00% | Get Quote | |
| Farmers Life Insurance Company | Farmers Safeguard Plus 5 | 6.00% | Get Quote |
Best 7 Year Fixed Annuity Rates
Today’s best 7-year fixed annuity rate is 6.50% in Knighthead Life’s Staysail 7 (Simple Interest). A 7-year MYGA typically offers a higher guaranteed rate in exchange for a slightly longer commitment, rewarding savers willing to lock in their money for the medium term. It’s a solid fit if you want stronger compounding without going all the way to a decade.
| Carrier | Product | Rate | AM Best | |
|---|---|---|---|---|
| Knighthead Life | Staysail 7 (Simple Interest) SI | 6.50% | Get Quote | |
| Knighthead Life | Staysail 7 CA (Simple Interest) SI | 6.40% | Get Quote | |
| Ibexis | MYGA Plus 7 (Simple Interest) SI | 6.15% | Get Quote | |
| Knighthead Life | Staysail 7 With Liquidity (Simple Interest) SI | 6.15% | Get Quote |
Best 10 Year Fixed Annuity Rates
Today’s best 10-year fixed annuity rate is 6.05% in Farmers Life’s Farmers Safeguard Plus 10. A 10-year MYGA locks in today’s rate for a full decade, often delivering some of the highest guaranteed yields available and shielding your money from future rate drops. It’s well suited for savers with a longer time horizon who value certainty above all.
| Carrier | Product | Rate | AM Best | |
|---|---|---|---|---|
| Farmers Life Insurance Company | Farmers Safeguard Plus 10 | 6.05% | Get Quote | |
| Revol One Financial | DirectGrowth 10 | 6.00% | Get Quote | |
| Revol One Financial | DirectGrowth 10 Enhanced Death Benefit | 5.90% | Get Quote | |
| Revol One Financial | DirectGrowth 10 Free Partial Surrender | 5.90% | Get Quote |
Compare Another Term
Looking for a term we didn’t break out above? Jump straight to any term’s dedicated rates page, from 2 years out to 10.
See what your money grows to
Enter a deposit and term. We apply today’s top guaranteed rate for that term — fully tax-deferred, with no market risk.
Illustration assumes interest compounds annually and is held for the full term. Actual rates change daily and vary by carrier, state, and deposit amount.
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How Fixed Annuities Work
A fixed annuity is a contract with an insurance company that pays a guaranteed interest rate for a set term, most commonly 3, 5, 7, or 10 years. Every fixed annuity moves through two distinct phases, and understanding both is the foundation for every other decision you’ll make about the product.
Fixed annuities are often called “CD-type” annuities for their similarity to certificates of deposit. Want to filter and sort every product yourself? Browse the full annuity rate marketplace to compare all 500+ contracts by state, deposit, term, and AM Best rating.
In the accumulation phase, your deposit earns the guaranteed rate and grows tax-deferred until the term ends. When the contract reaches the distribution phase (also called the payout phase), you decide how to take your money, as the diagram below shows: a lump sum, a tax-free 1035 exchange into a new annuity, a renewal with the same carrier, or a stream of guaranteed lifetime income.
Key contract features to compare
- Principal protection. Your original investment is shielded from market downturns.
- Tax-deferred growth. You won’t owe taxes on earnings until you withdraw, letting your money compound without annual tax drag.
- Surrender schedule. A surrender charge applies to withdrawals beyond the annual free amount during the surrender period. Schedules vary; some are steep.
- Free withdrawal provisions. Most MYGAs allow up to 10% of account value each year penalty-free.
- Market Value Adjustment (MVA). Adjusts surrender value for early withdrawals based on prevailing rates. Can work for or against you.
- Minimum premium. Some products require $2,500; others start at $25,000 or more.
- Insurer financial strength. Your guarantee is only as strong as the insurer behind it.
Simple Interest vs Compound Interest
Most fixed annuities pay compound interest, which means you earn interest on your interest. A smaller number of fixed annuities pay simple interest, which means you only earn interest on your initial deposit. This means a lower compound rate can pay you more money over time than an annuity with a higher simple interest rate.
PRO TIP: If you are going to withdraw your interest every month or year, then you can compare a simple interest rate to a compound rate apples to apples. Depending on market conditions, an annuity with simple interest will likely pay you more if you plan to use free withdrawals of interest. Try our compound vs simple interest calculator here.
| Year | Compound Interest | Simple Interest |
|---|---|---|
| Year 1 | $105,900 | $105,900 |
| Year 2 | $112,148 | $111,800 |
| Year 3 | $118,765 | $117,700 |
| Year 4 | $125,772 | $123,600 |
| Year 5 | $133,193 | $129,500 |
| Total Gain | $33,193 | $29,500 |
$100,000 at 5.90% over 5 years. Compounding produces $3,693 more, a gap that widens significantly over longer terms.
What Affects Fixed Annuity Rates?
Rates are driven by a mix of market conditions, insurer strategy, and product design. The factors below explain why one contract pays 6.50% while another pays 5.20% on the same term.
- Interest rates and Treasury yields. Insurers invest premiums in bonds, so when yields rise, annuity rates rise8.
- Contract term length. Longer terms usually pay more, but lock you in longer.
- Insurer pricing strategy. Some carriers compete aggressively on rate; others offer slightly lower yields with stronger ratings.
- Financial strength and risk profile. Lower-rated carriers often lead the rate tables.
- State availability. A contract offered in Florida may not be approved in New York.
- Premium amount. Deposits of $100,000+ typically earn higher tier rates.
- Optional features and liquidity. Enhanced free withdrawals and riders trade base rate for flexibility.
How to Choose a Fixed Annuity
The best fixed annuity for you is not always the one with the single highest rate. Two contracts with similar yields can still differ on surrender terms, liquidity, and the strength of the company behind the guarantee. Work through the questions below before you sign.
Before You Buy: Your Annuity Shopping Guide
New to shopping for an annuity? Work through these six questions in order. Each answers something buyers want to know before they sign.
Is now a good time to buy?
For most savers, the best time to buy a fixed annuity is when you have money you want to protect and grow without market risk, and right now rates remain attractive compared to much of the past decade. Because a fixed annuity locks in your rate for the entire term, buying while rates are strong means you keep that guaranteed yield even if rates fall later.
After bottoming out at historic lows in 2021, 5-year MYGA rates rebounded sharply and have stayed elevated in the years since. For buyers looking to lock in guaranteed long-term returns, today’s rates mark one of the most favorable windows in recent memory.
Fixed Annuities vs CDs
Fixed annuities (MYGAs) are often compared to bank CDs because both offer a defined return with limited market risk. The differences in tax treatment, liquidity, and how your principal is protected are what set them apart.
| Term | MYGA Rate | Top CD Rate | Tax-Equivalent Yield* |
Annuity | CD | Annuity Edge |
|---|---|---|---|---|---|---|
| 2-Year | 5.15% CL Life | 4.30% National Best | 6.78% | $110,565 | $108,785 | +$1,780 |
| 3-Year | 5.65% Farmers Life Insurance Company | 4.20% National Best | 7.43% | $117,926 | $113,137 | +$4,789 |
| 4-Year | 5.30% Clear Spring Life | 4.10% National Best | 6.97% | $122,946 | $117,436 | +$5,509 |
| 5-Year | 6.30%SI Knighthead Life | 4.25% National Best | 8.29% | $131,500 | $123,135 | +$8,365 |
*Tax-Equivalent Yield shows the pre-tax CD rate a saver in the 24% federal bracket would need to match the annuity rate on a tax-deferred basis (formula: annuity rate ÷ (1 − bracket)). Actual after-tax results depend on your full tax situation, state tax, and timing of withdrawals.
Sources: Annuity rates: July 6, 2026 · AnnuityRateWatch. CD rates: May 1, 2026 · Bankrate.com. Annuity values use compound interest at the stated rate; products marked SI use simple interest. 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).
A CD is issued by a bank and insured by the FDIC up to $250,000 per depositor6. A fixed annuity is issued by an insurance company, backed by that carrier’s financial strength and your state’s guaranty association. On rate alone, MYGAs have generally paid 1.0% to 1.75% more than top CDs at the same term over the last 24 months, and the gap widens as the term lengthens.
Tax treatment is the bigger story. A CD issues a 1099-INT every year and you owe ordinary income tax on the interest even if you never touch the money. A fixed annuity defers that tax until you withdraw, so every dollar of interest compounds untouched for the full term. For a full breakdown, see our fixed annuity vs CD comparison guide or run your numbers through our CD vs annuity calculator.
Types of Fixed Annuities
“Fixed annuity” is an umbrella term. The contracts below all guarantee principal and a stated rate, but they differ in how that rate is set and how long it’s locked.
| Type | How the rate works | Best for |
|---|---|---|
| MYGA (multi-year guarantee) | One guaranteed rate locked for the full term (3 to 10 years) | Savers who want certainty for a set period; the CD alternative |
| Traditional fixed (declared rate) | Rate guaranteed for 1 year, then reset annually by the insurer above a floor | Buyers who want flexibility and don’t mind a moving rate |
| Fixed annuity with MVA | Guaranteed rate, but early surrenders are adjusted up or down with market rates | Savers who accept a market-value adjustment in exchange for a slightly higher rate |
| Fixed indexed annuity (FIA) | Principal protected; interest credited on an index with a cap or participation rate | Buyers who want some market-linked upside with no downside |
Most of the rates on this page are MYGAs, the closest annuity equivalent to a CD. If market-linked growth interests you, compare fixed index annuity cap rates instead.
Fixed Annuity Rate FAQs
What is the best fixed annuity rate right now?
As of July 2026, the best fixed annuity rates run from about 5.5% to 6.5% APY depending on term and carrier. The single highest available rate for each term is shown in the rate table at the top of this page, updated daily from 90+ annuity companies.
Are fixed annuity rates better than CD rates?
Over the last 24 months, MYGAs have generally paid 1.0% to 1.75% more than top CDs at the same term, and the annuity defers taxes on the interest while a CD is taxed every year. The trade-off is that a CD is FDIC insured and fully liquid at maturity, while an annuity is backed by the insurer and has a surrender period.
How is a fixed annuity taxed?
Interest compounds tax-deferred inside the contract, so you receive no 1099-INT each year. You owe ordinary income tax only when you withdraw earnings. If you withdraw gains before age 59½, the IRS adds a 10% penalty7. Principal comes back tax-free.
Can I lose money in a fixed annuity?
Your principal and credited interest cannot fall with the market. The main way to lose money is to surrender early and pay a surrender charge (and possibly a market value adjustment) on amounts above your annual free-withdrawal limit. The guarantee also depends on the issuing carrier’s solvency, backstopped by your state guaranty association.
What happens when my fixed annuity matures?
You typically have four options: renew with the same carrier for a new term, transfer the funds tax-free to a better-paying carrier through a 1035 exchange, take a lump-sum withdrawal (taxable on the gains), or annuitize for a stream of income payments. We handle 1035 exchange paperwork for clients at no cost.
What is the minimum to buy a fixed annuity?
Minimums vary by carrier. Some contracts start as low as $2,500, while others require $25,000 or more. Deposits of $100,000+ often qualify for a higher tier rate.
How much does a $100,000 fixed annuity pay?
At a 5.90% compound rate over 5 years, $100,000 grows to about $133,193, a gain of $33,193. The exact figure depends on the rate, term, and whether interest is compound or simple. Use our calculators to model your own deposit.
What is a MYGA?
A MYGA, or multi-year guaranteed annuity, is the most common type of fixed annuity. It guarantees a set interest rate for a fixed number of years — typically 3, 5, 7, or 10 — much like a bank CD, but issued by an insurance company with tax-deferred growth.
What is the best fixed annuity rate for a 5-year term?
As of July 2026, the best 5-year MYGA rates sit in the low-to-mid 6% range, and 5-year contracts are the most popular term we place — a balance of a strong guaranteed rate and a moderate surrender period. See the 5-year rate table above for today’s single highest rate, and note that some leading products use simple interest, so the effective compound yield is slightly lower.
Are there any 7% annuities?
Not among today’s fixed (MYGA) annuities — as of July 2026, the highest guaranteed fixed rates top out in the mid-6% range. Advertised “7%+” figures usually refer to fixed indexed annuities, where the number is a premium bonus or an income-rider rollup rate rather than a guaranteed yield on your money. Those products work very differently, so compare them carefully.
Are fixed annuities safe?
Fixed annuities are one of the more conservative ways to grow savings. Your principal is protected from market downturns, and the guarantee is backed by the issuing insurer’s financial strength plus your state’s guaranty association5, up to its limits. We recommend carriers rated A− or better by AM Best3 for added confidence.
What is a surrender charge?
A surrender charge is a penalty for withdrawing more than the contract’s penalty-free amount before the surrender period ends. It usually starts at a set percentage and declines each year until it reaches zero at the end of the term. Most MYGAs let you withdraw up to 10% of the account value each year without triggering it.
What is a market value adjustment (MVA)?
An MVA is an adjustment applied to early withdrawals above the free amount, tied to how interest rates have moved since you bought the contract. If rates have risen, the MVA reduces your surrender value; if rates have fallen, it can increase it. It applies only during the surrender period and only to amounts above your penalty-free withdrawal.
Can I withdraw money early from a fixed annuity?
Usually yes, within limits. Most MYGAs allow penalty-free withdrawals of up to 10% of the account value each year. Taking more than that during the surrender period triggers a surrender charge and possibly a market value adjustment, and withdrawals before age 59½ may face a 10% IRS penalty.
Is B++ a good AM Best rating for an annuity?
B++ falls in AM Best’s “Good” category — investment-grade and considered financially secure, but a notch below the “Excellent” (A−/A) and “Superior” (A+/A++) tiers. Lower-rated carriers often lead the rate tables, so a B++ company can be a reasonable choice for the right buyer; just weigh the higher rate against the carrier’s strength and your own comfort level.
Where can I buy a fixed annuity online?
You can compare and buy fixed annuities online through an independent marketplace like My Annuity Store, where you work directly with a licensed specialist — not a call center or a lead form sold to multiple agents. Most carriers offer e-applications, and every contract includes a 10- to 30-day free-look period4 to review and cancel penalty-free.
How My Annuity Store Works
My Annuity Store works with 90+ top annuity companies and does not charge a fee for our service. You work directly with a licensed employee, never a call center and never a lead-generation form sold to the highest bidder. The process takes 15 to 30 minutes and looks roughly the same at every carrier:
- Step 1: Compare live rates. Use the table at the top of this page or request a personalized rate report with your state, age, and deposit amount.
- Step 2: Review carrier financials. Check AM Best, S&P, and Moody’s ratings. We recommend A- or better.
- Step 3: Complete the application. Most carriers offer e-application. You will need ID, beneficiary info, and a funding source.
- Step 4: Fund the contract. Transfer from a bank, another annuity (1035), or an IRA rollover.
- Step 5: Free-look period. Every state gives you 10 to 30 days to review the issued contract and cancel penalty-free.
If a different carrier offers a better rate when your contract matures, a 1035 exchange moves the money tax-free, and we handle that paperwork for clients at no cost. Request a personalized rate report or call 855-583-1104.
Methodology
The rates on this page are not a curated shortlist. They are pulled from the full independent market and refreshed automatically so the numbers stay current.
- Rate data. Live fixed annuity (MYGA) rates are sourced from AnnuityRateWatch2 and refresh multiple times per day across the 90+ carriers we are appointed with. The “best rate by term” figures reflect the single highest available rate for each contract length at the time of refresh.
- Sales and market-share data. Carrier sales figures and industry rankings come from LIMRA’s U.S. Individual Annuity Sales Survey for full-year 20251.
- Financial-strength ratings. Carrier ratings are AM Best financial-strength grades, current as of the last update.
- What we don’t do. We do not accept payment to rank a carrier higher, and we don’t hide lower-rated carriers that lead on rate. We show the market and explain the trade-offs.
Last updated July 2026.
Fixed Annuity Rates by Insurer Rating
Prefer to shop by the issuing carrier’s financial strength? Compare today’s top fixed annuity (MYGA) rates grouped by AM Best rating. The strongest-rated insurers (A++ / A+) emphasize long-term safety, while some lower-rated carriers pay higher rates, so weigh both before you buy.
Tiers reflect AM Best financial-strength grades and change over time. Not sure which rating fits your goals? Get a quote or call 855-583-1104.
Annuity Rates by State
Annuity rates and product availability vary by state. Every insurer must be licensed where you live, and many carriers file different products and rates state by state. Choose your state for the best annuity (MYGA) rates available to you, plus state-specific tax treatment and guaranty coverage.
Availability and rates vary by state and are subject to change. Don’t see your state or need help comparing? Get a quote or call 855-583-1104.
Sources
This page is built from primary industry and regulatory sources. Figures are current as of the last update.
