Compare the best fixed annuity rates (MYGA) for 2–10 year terms — updated every business day. View top current rates, insurer financial strength, and withdrawal features below. Want personalized help? Get a custom quote or sign up for rate alerts
As of August 19, 2025, the best fixed annuity rate is 6.60% simple interest for 7 years.
| Term | Insurer | Company | Annuity | Rate | AM Best | Free withdrawals | Application |
|---|---|---|---|---|---|---|---|
| 2 Years | 
| Axonic | Skyline Growth | 5.55% | A- | none yr 1 10% yrs 2 | Apply |
| 3 Years | 
| Mountain Life | Alpine Horizon | 6.00% | B+ | 10% | Apply |
| 4 Years | 
| Nassau | Simple Annuity | 5.50% | B++ | 5% | Apply |
| 5 Years |
| Mountain Life | Alpine Horizon | 6.15% | B+ | none yr 1 5% yrs 2+ | Apply |
| 6 Years |
| Nassau | Nassau Simple Annuity | 5.75% | B++ | 5% | Apply |
| 7 Years | 
| Knighthead Life | Staysail Annuity | 6.60% Simple | A- | None | Apply |
| 8 Years | 
| EquiTrust | Certainty Select | 5.65% | B++ | Interest Only | Apply |
| 9 Years | 
| Clear Spring Life | Preserve MYGA | 5.40% | A- | None Yr 1 10% Yrs. 2-9 | Apply |
| 10 Years | 
| Revol One | DirectGrowth MYGA | 6.00% | B++ | None | Apply |
*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.
Today’s best 3-year fixed annuity rate is 6.00% as of August 19, 2025.
| Term | Insurer | Review | Annuity | Rate | AM Best | Apply |
|---|---|---|---|---|---|---|
| 3 Years |
| Mountain Life | Alpine Horizon | 6.00% | B+ | Apply |
| 3 Years |
| Revol One | DirectGrowth MYGA | 5.65% | B++ | Apply |
| 3 Years | 
| CL Life | CL Sundance | 5.65% | B++ | Apply |
| 5 Years |
| Knighthead Life | Staysail Annuity | 5.45% | A- | Apply |
| 3 Years | 
| American Life | American Classic 3 | 5.35% | B++ | Apply |
| 3 Years | 
| Ibexis | Synergy Choice 3 | 5.22% | A- | Apply |
“Rates shown are for informational purposes only and subject to change before contract issue. Guarantees are backed by the claims-paying ability of the issuing insurer. State variations may apply.”
Knighthead Life has the best 5-year fixed annuity rate today at 6.45% simple interest. Use the comparison table below to compare the top 5-year fixed annuity rates available today.
| Term | Insurer | Annuity Company | Annuity | Rate | AM Best | Apply |
|---|---|---|---|---|---|---|
| 5 Years |
| Knighthead Life | Staysail Annuity | 6.45% Simple | A- | Apply |
| 5 Years |
| Mountain Life | Alpine Horizon | 6.15% | B+ | Apply |
| 5 Years |
| DirectGrowth MYGA | DirectGrowth MYGA | 5.85% | B++ | Apply |
| 5 Years |
| DirectGrowth MYGA | DirectGrowth MYGA | 5.75% | B++ | Apply |
| 5 Years |
| Nassau | MyAnnuity | 5.75% | None | Apply |
| 5 Years | 
| Farmers Life | Safeguard Plus | 5.60% | B++ | Apply |
| 5 Years |
| Nassau | MYAnnuity | 5.55% | B++ | Apply |
“Rates shown are for informational purposes only and subject to change before contract issue. Guarantees are backed by the claims-paying ability of the issuing insurer. State variations may apply.”
Knighthead Life offers the best 7-year fixed annuity rate at 6.60% simple interest.
| Term | Insurer | Company Details | Annuity | Rate | AM Best | Apply |
|---|---|---|---|---|---|---|
| 7 Years |
| Knighthead Life | Staysail Annuity | 6.60% Simple | A- | Apply |
| 7 Years |
| Revol One | DirectGrowth MYGA | 5.85% | B++ | Apply |
| 7 Years |
| Nassau | MyAnnuity 7 | 5.80% | B++ | Apply |
| 7 Years | 
| Ibexis | MYGA Plus | 5.95% Simple | A- | Apply |
| 7 Years |  | Aspida | Synergy Choice | 5.65% | A- | Apply |
“Rates shown are for informational purposes only and subject to change before contract issue. Guarantees are backed by the claims-paying ability of the issuing insurer. State variations may apply.”
The best 10-year fixed annuity rate is 6.00% offered by Revol One Life Insurance Company.
| Term | Insurer | Review | Annuity | Rate | AM Best | Application |
|---|---|---|---|---|---|---|
| 10 Years |
| Revol One | DirectGrowth MYGA | 6.00% | B++ | Apply |
| 10 Years | 
| Sentinel Security | Personal Choice | 5.90% | B++ | Apply |
| 10 Years |
| Equitrust | Certainty Select | 5.75% | B++ | Apply |
| 10 Years |
| Farmers Life | Safeguard Plus | 5.65% | B++ | Apply |
“Rates shown are for informational purposes only and subject to change before contract issue. Guarantees are backed by the claims-paying ability of the issuing insurer. State variations may apply.”
Simple interest is like stacking equal-sized bricks each year. Compound interest is like letting each brick grow little buds that become new bricks next year.
Quickly see the difference compounding can make over time. Adjust inputs, compare totals, then use the insight to position annuity growth conversations.
| Year | Simple Balance | Compound Balance | Contribution This Year | Cumulative Contributions | Simple Interest Earned | Compound Interest Earned |
|---|
Educational illustration only; not a projection or guarantee. Real annuity values may differ based on product features, crediting methods, caps, spreads, fees, and surrender schedules.
Multi-Year Guaranteed Annuity (MYGA)
Multi-Year Guaranteed Annuity Rates (MYGA) are set for the length of your contract. Most annuities provide some liquidity but not all; so that is something to keep in mind.
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
As the name suggests, a single premium immediate annuity provides a steady stream of income shortly after an investor purchases a contract, usually within 30 days, and always within 13 months.
Traditional Fixed Annuity Rates
Traditional fixed annuity rates do not guarantee a set interest rate for the entire length of the annuity contract. The first years rate is specified and a new rate is set on each anniversary.
Fixed Index Annuity Rates
Fixed index annuity rates combine elements of both fixed and variable annuities. They offer a minimum guaranteed interest rate, similar to fixed annuities, but also provide the potential for additional earnings based on the performance of a stock market index.
The Federal Reserve and Annuity Rates
Annuity rates are influenced by US Treasury rates because insurance companies invest much of their assets in high-quality bonds and U.S. Treasuries. This is why current annuity rates often mirror the interest rates available in other fixed-income investments, primarily bonds and U.S. Treasuries. When bond rates increase, annuity rates usually go up as well.
When the Federal Funds Rate goes down, likely, annuity rates will also likely go down. The Fed left the federal funds rate unchanged at 4.25%–4.50% for a fourth consecutive meeting in June 2025.
The interest you earn in an annuity grows tax-deferred, which means you don’t have to pay taxes on the interest your annuity earns until you make a withdrawal from your annuity. Generally, earnings from annuities are taxed at your ordinary income tax rate using the LIFO (last in, first out) method.
Ultimately, how your annuity earnings will be taxed depends on the type of funds you use to purchase the annuity.
Below is an example showing how tax deferral could increase your earning power. Consider someone whose Federal Tax bracket is 32% who owns an annuity that earns 4.50%. To match those same earnings in a taxable investment, they would have to earn 6.62% instead.
Under current law, annuities grow tax-deferred. An annuity is not required for tax deferral in qualified plans. Annuities may be subject to taxation during the income or withdrawal phase. Neither My Annuity Store, Inc. nor any financial professionals acting on its behalf should be viewed as providing legal, tax, or investment advice. You should be advised to rely on your qualified tax professional.
The table below lists the top 10 Annuity Companies for 2024 based on total U.S. Individual fixed annuity sales. To learn more about these companies, visit our annuity company directory.
| Rank | Insurance Company | 2024 Fixed Annuity Sales ( |
|---|---|---|
| 1 | Athene Annuity & Life | 21,155,879 |
| 2 | Massachusetts Mutual Life | 16,071,784 |
| 3 | Corebridge Financial | 13,043,253 |
| 4 | New York Life | 9,460,746 |
| 5 | Global Atlantic Financial Group | 7,605,065 |
| 6 | Fidelity & Guaranty Life | 5,052,034 |
| 7 | American National Insurance | 4,782,840 |
| 8 | Western Southern Group | 4,771,770 |
| 9 | Delaware Life | 4,736,445 |
| 10 | Reliance Standard Life Insurance | 4,021,995 |
| Top 20 | $120,551,930 | |
| Total industry | $153,200,000 | |
| Top 20 share | 79% |
Compare today’s fixed (multi‑year guaranteed) annuities with bank CDs. Both protect principal and offer a guaranteed rate, but taxation, liquidity provisions, beneficiary treatment, and long‑term accumulation potential differ. Use the quick matrix below, then run the mini calculator to see the after‑tax impact of tax deferral.
| Feature | Fixed (MYGA) Annuity | Bank CD |
|---|---|---|
| Typical 2025 Multi‑Year Rates* | Approx. 4.8% – 6.1% (term & insurer dependent) | Approx. 4.2% – 5.4% (national online averages) |
| Interest Taxation Timing | Tax‑deferred; gain taxed when withdrawn (ordinary income) | Taxed annually (Form 1099‑INT) |
| Effective After‑Tax Growth | Compounds pre‑tax until distribution; deferral may boost net accumulation | Each year’s interest reduced by taxes before compounding further |
| Early Access Costs | Surrender charges & possible market value adjustment (MVA) during surrender period | Bank early withdrawal penalty (e.g., 3–12 months of interest) |
| Free Liquidity Allowance | Often 10% of account value annually after year 1 (varies) | No partial “free” withdrawals; penalty applies if redeemed early |
| Guarantees / Coverage | Backed by insurer’s claims‑paying ability; state guaranty association coverage (limits, not all states; not FDIC) | FDIC or NCUA insured up to applicable limits per depositor |
| Rate Lock Mechanics | Rate locked at issue once funds received within hold period | Rate locked at account opening/funding date |
| Compounding Method | Interest compounds tax‑deferred inside contract | Interest may compound, but net growth reduced by annual taxation |
| Beneficiary Transfer | Passes to named beneficiaries; avoids probate | Part of estate unless TOD/POD or trust titling arranged |
| Death Proceeds Timing | Generally paid promptly upon claim; ordinary income on gain | Distributed per account titling; probate delays possible |
| Use in Rollover / 1035 / IRA | Yes (1035 exchange, IRA transfer / rollover) | IRA CDs available; no 1035 concept |
| Suitability / Oversight | Insurance suitability standards; disclosure forms | Bank CIP / deposit compliance; no insurance suitability review |
| Minimum Premium / Deposit | Often $10k–$25k (some lower) | Often $500–$2,500 (online banks frequently lower) |
| Principal Guarantee | Yes, by insurer (subject to claims‑paying ability) | Yes, by bank; FDIC/NCUA insurance to limits |
| Partial 1035 / Ladder Strategy | MYGA ladders for future rate resets & liquidity staggering | CD ladders widely used for reinvestment flexibility |
| Typical Use Cases | Tax‑efficient accumulation, IRA funding, conservative diversification | Short/known time horizon cash reserves, laddering for liquidity |
| Withdrawal Prior to 59½ | May incur 10% IRS penalty on taxable portion (non‑IRA) | No 10% penalty (it’s interest income), just bank penalty |
| RMD Compatibility | Yes (coordinate distributions in IRA) | Yes (IRA CDs can satisfy RMD when matured or withdrawn) |
| Inflation Risk | Fixed nominal rate; multi‑year commitment | Fixed nominal rate; usually shorter average terms |
Compare today’s fixed (multi‑year guaranteed) annuities with bank CDs. Both protect principal and offer a guaranteed rate, but taxation, liquidity provisions, beneficiary treatment, and long‑term accumulation potential differ. Use the quick matrix below, then run the mini calculator to see the after‑tax impact of tax deferral.
There are various avenues through which you can buy annuities.
Explore common scenarios where a Multi-Year Guaranteed Annuity (MYGA) may be considered versus doing nothing, buying a CD, or using other fixed-income instruments. Expand each panel for: the situation, why a MYGA might fit, alternatives, and key evaluation cautions.
This educational comparison is hypothetical and not personalized advice. MYGAs are long-term insurance products with surrender periods and possible market value adjustments (if applicable). Withdrawals of taxable gains before age 59½ (non-qualified) may incur a 10% IRS penalty. Rates, features, free withdrawal provisions, and carrier financial strength vary; guarantees rely on the insurer’s claims-paying ability. State guaranty association coverage differs from and is not a substitute for FDIC insurance. Evaluate liquidity needs, tax implications, and suitability prior to purchase.
Below are the questions real clients ask us before (and after) purchasing a Multi-Year Guaranteed Annuity. Expand any topic. Nothing here is personalized advice—always evaluate your own liquidity needs, time horizon, tax situation, and overall plan.
Disclaimer: This FAQ is general education—not individualized tax, legal, or investment advice. Guarantees are subject to the issuing insurer’s financial strength. State guaranty association protections vary and are not a substitute for FDIC insurance. Review the contract, disclosure documents, and your own financial plan before purchasing or exchanging an annuity.
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.
(1) Rates shown are annual effective yields unless labeled “simple.”
(2) Product availability and rates may vary by state and underwriting date; subject to change prior to contract issue.
(3) AM Best ratings current as of August 2025 and may change.
(4) Tax examples assume non-qualified funds, no partial withdrawals, and current federal tax law; consult your tax professional.
(5) Guarantees rely on the issuing insurer’s financial strength; not insured by FDIC or any federal agency.
