Best 2-Year Fixed Annuity Rates for June 25, 2026

A 2-year fixed annuity (MYGA) is the shortest multi-year guaranteed annuity available, which makes it the closest annuity equivalent to a short-term CD. You lock a guaranteed rate for just two years, your principal is protected, and the interest grows tax-deferred until you withdraw. Currently, the top 2-year fixed annuity rate is 5.15% from CL Life (CL Sundance 2, rated B++) – roughly 0.85% higher than the best nationally available 2-year CD.

Best 2-Year Fixed Annuity Rates Today

Every rate below is pulled live from 90+ top annuity companies and refreshes every six hours. The current top 2-year rate is 5.15% from CL Life (CL Sundance 2, AM Best B++). Products marked SI use simple interest; rates vary by state and minimum premium.

What Is a 2-Year Fixed Annuity (MYGA)?

A 2-year fixed annuity locks a single guaranteed interest rate for a 24-month term. Because the commitment is so short, surrender charges run off quickly and the product behaves much like a CD – but with tax deferral on non-qualified money and, often, a rate premium because the issuing insurer earns a credit spread that banks do not.

Who Is a 2-Year Fixed Annuity For?

A 2-year MYGA fits money you want to keep safe and liquid-ish on a short horizon: cash earmarked for a near-term goal, the front rung of an annuity or CD ladder, or funds you want to park for two years at a guaranteed rate while you decide on a longer strategy. It is not the place for money you may need at a moment’s notice – keep an emergency reserve elsewhere.

2-Year Fixed Annuity vs. 2-Year CD: Which Pays More?

At 5.15% versus about 4.30% for the best 2-year CD, the 2-year MYGA pays a higher headline rate, and on non-qualified money the tax deferral widens the gap further – a tax-equivalent yield near 6.78% for many savers. The trade-off is liquidity: a CD can be broken for a simple interest penalty, while a MYGA uses surrender charges and possibly a market value adjustment if you exit early.

What Happens When the 2-Year Term Ends?

When the 2-year term ends you get a window (often 30 days) to withdraw without surrender charges, renew into a current term, 1035 exchange to another annuity, or annuitize. If you do nothing, many contracts auto-renew – sometimes at the guaranteed minimum rate – so always act on the maturity notice.

How We Source Our Rates

Rates are sourced from AnnuityRateWatch and refreshed every six hours across the full independent market – not a curated shortlist. Our editorial floor is B+ or higher by AM Best; lower-rated products may appear in the full filterable table, always with the rating disclosed. Guarantees are backed by the claims-paying ability of the issuing insurer. State guaranty association limits apply and vary by state. Not a bank product; not FDIC insured.

2-Year Fixed Annuity Rate FAQs

What is the best 2-year fixed annuity rate right now?

Currently, the best 2-year fixed annuity rate is 5.15% from CL Life (CL Sundance 2, AM Best B++). Rates change frequently and the live table above shows current top rates by carrier.

Is a 2-year fixed annuity better than a 2-year CD?

The top 2-year MYGA at 5.15% pays more than the best 2-year CD near 4.30%, and on non-qualified money it grows tax-deferred. A CD is FDIC-insured and easier to break early; a MYGA relies on the insurer’s strength and uses surrender charges, so the right choice depends on whether you value yield and tax deferral or maximum liquidity.

Should I lock in a 2-year annuity rate now?

Fixed annuity rates are near 15-year highs but have started to drift lower as the Fed eases. If a 2-year rate meets your goal, locking now removes reinvestment guesswork; if you expect to need flexibility sooner, a shorter or laddered approach may fit better.

How is a 2-year MYGA taxed?

Interest in a non-qualified 2-year MYGA grows tax-deferred and is taxed as ordinary income only when withdrawn (earnings come out first under LIFO rules). Gains taken before age 59½ may face a 10% IRS penalty. In an IRA, normal IRA tax rules apply.

Can I withdraw money before the 2-year term ends?

Most 2-year MYGAs allow a penalty-free withdrawal of about 10% of the value each year. Larger early withdrawals during the surrender period can trigger surrender charges and a market value adjustment, so confirm the specific contract terms.

What happens when my 2-year term ends?

You receive a maturity window to withdraw penalty-free, renew, 1035 exchange, or annuitize. Many contracts auto-renew if you take no action, so read the maturity notice and compare current rates before deciding.

Who should buy a 2-year fixed annuity?

Savers who want principal protection and a guaranteed rate on a short, defined horizon – for a near-term goal, the first rung of a ladder, or a temporary parking spot – and who do not need instant access to the funds.

Are 2-year fixed annuities safe?

Guarantees are backed by the issuing insurer’s claims-paying ability, with state guaranty association coverage as a backstop (limits vary by state and are not the same as FDIC insurance). Choosing higher-rated carriers and sizing positions to coverage limits reduces risk.

Can I fund a 2-year MYGA with my IRA?

Yes. A 2-year MYGA can be held inside a Traditional, Roth, or SEP IRA, or funded from a 401(k) rollover via a direct trustee transfer. The IRA already provides tax deferral; the annuity adds a guaranteed rate and principal protection.

Do 2-year annuity rates vary by state or deposit amount?

Yes. Availability and the exact rate can differ by your state of residence, the premium amount, and whether optional liquidity features are added. The live table reflects the carriers and rates available where you live.

Who Is Behind This Page?

Jason Caudill, MBA, is the founder of My Annuity Store and has spent his career helping clients protect retirement savings with annuities from top carriers. My Annuity Store is independent and not affiliated with any single carrier, so the rankings here reflect the full market, not one company’s lineup. My Annuity Store is 100% independent and licensed in 47 states.

More on Fixed Annuity Rates

• All fixed annuity rates
• 2-year · 3-year · 4-year · 5-year · 6-year · 7-year · 8-year · 9-year · 10-year
• Fixed annuity vs. CD
• What is a MYGA? Complete guide