Best 5-Year Fixed Annuity Rates for April 2026

Best 5-Year Fixed Annuity Rates for April 2026

The top 5-year fixed annuity (MYGA) rate today is 6.30% APY, compared with roughly 4.65% for a comparable bank CD. A $200,000 deposit locked in at 6.30% for five years grows to about $271,000, and the interest compounds tax-deferred until you take it out.

Use the live rate table below to filter by state, premium amount, and A.M. Best rating. Rates refresh every 30 minutes through our Annuity Rate Watch data feed. Want a personalized quote? Call 855-583-1104 or request a quote online.

What Is a 5-Year Fixed Annuity (MYGA)?

A 5-year fixed annuity, also called a 5-year multi-year guaranteed annuity (MYGA), provides a guaranteed interest rate for a full five-year term. For a comparison across all term lengths, see our main fixed annuity rates page, or jump directly to 3-year MYGA rates or 7-year MYGA rates. Your money earns a fixed rate each year, and the insurance company guarantees that rate will not change during the 5 years.

5-year fixed annuities work similarly to certificates of deposit (CDs), but they are issued by an insurance company, not a bank.

My Annuity Store does not charge a fee, and none of the annuities we offer charge a fee; unless you withdraw your funds early, in which case you may be assessed a surrender charge.

• You agree to leave your money in the annuity for the full term
• The insurance company credits a fixed interest rate that is locked-in for all  5 years
• Early withdrawals above any free-withdrawal amount may be subject to surrender charges and possible tax penalties
• Interest you earn in a fixed annuity grows tax-deferred, so you won’t have to deal with a 1099 each year

What Happens at the End of an Annuity Contract?

It is important to note that there is a 30-day window at the end of an annuity contract in which you will need to make a decision. If you do nothing, your annuity will renew for another term at whatever annuity rate is being offered at that time. You will have several options at the end of your annuity contract, and we’ve listed them below.

• You can rollover the funds into another annuity to continue tax-deferred growth (via a 1035 exchange).
• You can rollover to an income annuity to secure a new income stream.
• You can also initiate withdrawals, systematically or as a lump sum.

You should be aware of possible tax implications. Tax considerations and potential ramifications will vary based on your annuity contract and situation. My Annuity Store recommends you carefully assess your options and consult a financial advisor to align your decision with your financial objectives.

What Affects 5-Year Fixed Annuity Rates?

5 year fixed annuity rates can vary based on several factors, including:

• State of residence – Not all products and rates are available in every state.
• Premium amount – Some carriers offer higher rates for larger deposit levels.
• Tax status and product – IRA vs non-qualified funds, and specific MYGA product features, such as free withdrawal amounts, can influence the rate offered.
• Carrier pricing – Insurance companies adjust MYGA rates based on interest rates, portfolio yields, and their own business goals.
• Insurance Company Financial Ratings – Companies with lower financial ratings usually have higher fixed annuity rates than companies with higher AM Best ratings.

How to See the Most Accurate Fixed Annuity Rates

For the most accurate and relevant 5-year fixed annuity (MYGA) rates for your situation:

1. Filter rates by your state of residence to see products and rates available where you live.
2. Enter your desired premium amount to view any rate breaks or deposit tiers.
3. Review product details for each annuity, including surrender schedule, free-withdrawal provisions, and carrier rating.

If you’d like help comparing options or confirming your exact rate before you apply, call us at 855-583-1104 or request a personalized quote.

Best 5 Year Annuities by Category

Compare the annuities with the best 5 year fixed annuity rate overall, the best rate with liquidity, and the best rate for a company rated A- or higher.

Best Rate

Anchor MYGA 5

Provider: American Gulf • AM Best: B++

Annuity rate
6.30%
Term
5 years
Free withdrawals
0% in year 1; after year 1: 0%
Minimum investment
$10,000
Get a quote
Call 855-583-1104
Brochure

Best for Liquidity

Mountain Life

Provider: Alpine Horizon • AM Best: B

Annuity rate
6.15%
Term
5 years
Free withdrawals
0% in year 1; after year 1: 5%
Minimum investment
$5,000
Get a quote
Call 855-583-1104
Brochure

Best A- Rated+

Waypoint 5 MYGA

Provider: Axonic Insurance Services • AM Best: A-

Annuity rate
5.70%
Term
5 years
Free withdrawals
0% in year 1; after year 1: 10%
Minimum investment
$100,000
Get a quote
Call 855-583-1104
Brochure

Compare	Best Rate Anchor MYGA 5 American Gulf • AM Best: B++	Best for Liquidity Mountain Life Alpine Horizon • AM Best: B	Best A- Rated+ Waypoint 5 MYGA Axonic Insurance Services • AM Best: A-
Annuity rate	6.30%	6.15%	5.70%
Free withdrawals	After year 1: 0% free / year	After year 1: 5% free / year	After year 1: 10% free / year
AM Best rating	B++	B	A-
Term	5 years	5 years	5 years
Minimum investment	$10,000	$5,000	$100,000
Brochure	Brochure	Brochure	Brochure
Next step	Get a quote Call	Get a quote Call	Get a quote Call

Disclosure: Rates, withdrawal provisions, and carrier ratings are subject to change and may vary by state and issue age.
This table is for educational comparison only and is not a guarantee of availability or approval. Confirm all details before purchase.

Comparing Fixed Annuity Rates

When shopping for the best fixed annuity rate, it is important to look past the highest rate and consider all features of each annuity.

Key Features to Consider:

• Insurance Company’s financial ratings
• Free withdrawal privileges
• Surrender charges
• Options at the end of the annuity contract

Simple vs Compound Interest

When evaluating the best 5 year fixed annuity rates, you will likely see that the majority of MYGAs, or multi-year guarantee annuities, offered by insurance companies use compound interest. Knighthead Life’s Staysail MYGA takes a more straightforward approach with simple interest.

Let’s compare two five-year fixed annuities with an initial deposit of $100,000.

The simple interest MYGA pays a rate of 5.95%, and compound interest MYGA pays a crediting rate of 5.35% annually. As you can see from the table of values below, both individuals have the same accumulated value after five years, making the products rate-equivalent.

The Difference: Income
What if you’d like to use your MYGA for income purposes and take interest-only withdrawals annually to cover certain living expenses? See how the compound and simple interest MYGAs compare over five years of annual, interest-only withdrawals. Use our simple vs. compound interest calculator

The simple interest option generates $29,750 versus the compound interest total of $26,734. That’s 11.5% more income. When it comes to income, the simple interest MYGA provides more value.

Free Withdrawal Options

Many 5 year fixed annuities allow you to withdraw the interest earned, or up to 10% of your account value annually, without penalty. While some fixed annuities have no free withdrawal options. Example: If you have $100,000 in your annuity, you could withdraw up to $10,000 in year two without facing surrender charges.

If you do not want or need any free withdrawal options, it may be wise to consider annuities with no free withdrawal provisions because they typically pay a higher guaranteed rate.

Surrender Charges

A surrender charge is a fee applied by an insurance company when you withdraw money from an annuity during the “surrender period,” which is during the 5 year annuity contract.
Surrender charges are applied as a percentage of your annuity’s account value and decrease over time.

They reduce the total cash value you receive and are typically highest at the start, often becoming zero after 7-8 years, with some contracts allowing small penalty-free withdrawals annually.

Fixed Annuities vs. CDs vs. Bonds

Fixed annuities, bonds, and CDs are all worth considering if you are looking for a safe and steady way to grow your retirement savings. They each offer predictable returns and safety of principal, but there are differences among them.

The table below compares and contrasts the differences.

Fixed Annuity Advantages:

• Higher rates: 1.5-2% more than CDs
• Tax-deferred growth: Pay taxes only when you withdraw
• No annual 1099s: Unlike CDs and bonds
• Competitive with bonds: Without interest rate risk

When to Choose CDs Instead:

• Need FDIC insurance specifically
• Want maximum liquidity
• Uncomfortable with the insurance company backing annuities

When to Choose Bonds Instead:

• Want government backing
• Need to sell before maturity (secondary market)
• Building a bond ladder

2026 Annuity Rate Trends

What’s Happening Now: The Fed began cutting rates in late 2024. While annuity rates have held strong, they’re starting to edge downward. 2026 Outlook: Most projections show continued Fed rate cuts. Waiting could mean locking in rates 1-1.5% lower than today. Bottom Line: Today’s rates remain historically attractive. If a rate meets your goals, locking in now beats gambling on a downward trend. When analyzing your options, the best 5 year fixed annuity rates should be at the forefront of your considerations.

Who Should Consider a 5 Year Fixed Annuity?

A 5-year fixed annuity isn’t right for everyone. Here’s who benefits most from these products.

Pre-retirees in their 50s and early 60s who want to protect a portion of their retirement savings from market volatility while earning guaranteed returns. If you’re five to ten years from retirement, you don’t have time to recover from a major market crash. Putting some of your portfolio in a 5 year fixed annuity creates a safety net.

Recent retirees who need to preserve capital while earning more than savings accounts offer. If you’ve just retired with a lump sum from a 401(k) rollover, placing a portion in a 5 year guaranteed annuity ensures that money will be there when you need it, grown by a predictable amount.

Conservative investors who lose sleep over market fluctuations. If checking your investment balance during market downturns causes anxiety, fixed annuities offer peace of mind. The guaranteed rate means you never see a negative return, which is psychologically valuable for risk-averse individuals.

People with large cash positions exceeding FDIC insurance limits who want safe alternatives to spreading money across multiple banks. If you have $500,000 in cash, you could put $250,000 in FDIC-insured accounts and $250,000 in highly-rated fixed annuities for similar safety with potentially better returns.

Those seeking CD alternatives who want higher rates and tax deferral. If you’re already comfortable with CDs, fixed annuities are a natural next step, offering better returns in exchange for similar commitment.

On the flip side, 5-year fixed annuities probably aren’t right for you if you’re young with decades until retirement (you can afford more market risk for higher returns), if you might need the money before five years (liquidity is limited), or if you’re comfortable with market volatility and want maximum growth potential.

Case Study: Buying a 5-Year Fixed Annuity

Sarah

Age: 62

Location: Indianapolis, Indiana

Amount Invested: $200,000

Sarah plans to retire at age 67 in five years. She had been diligent about saving throughout her 30-year career as a school administrator and was satisfied with her financial situation. However, her $200,000 CD ladder was only earning 4.5%, and her bank was offering even less for renewals.

She didn’t want to risk losses in the stock market with money she’d need in just five years, but she knew she could do better than what her bank was offering.

However, with just a few years to go, she was interested in finding somewhere to put her money that offered predictable growth without market risk. She discovered a 5-year fixed annuity offering an annuity rate of 6.30% that was also tax-deferred.

This intrigued her for two reasons: the annuity would grow more effectively than a 5-year CD since the interest would not be taxed each year, and she would be in a lower tax bracket when she retires and withdraws the funds.

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Sarah’s Choice: American Gulf Anchor MYGA

Why this product fit her situation:

• ✅ Higher guaranteed rate: 6.30% vs. 4.5% on her CDs
• ✅ Tax-deferred growth: No annual 1099 forms like her CDs
• ✅ Perfect timing: 5-year term matures at age 67, right at retirement
• ✅ Emergency access: 10% free withdrawal provision
• ✅ Strong backing: B++ AM Best rating with Indiana state guaranty protection

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The Results

Sarah’s $200,000 investment comparison:

Year	CD Ladder (4.5%)	American Gulf MYGA (6.30%)	Extra Earnings
Year 1	$9,000	$12,600	+$3,600
Year 2	$9,405	$13,194	+$3,789
Year 3	$9,828	$13,825	+$3,997
Year 4	$10,270	$14,498	+$4,228
Year 5	$10,732	$15,215	+$4,483
Total Interest	$49,235	$69,332	+$20,097
Final Value	$249,235	$269,332	+$20,097

Additional tax benefit: By deferring taxes until withdrawal at age 67 when she’ll be in a lower bracket, Sarah saves an estimated additional $3,500-$5,000 compared to paying taxes annually on CD interest.

Total advantage: Over $23,000 more in her pocket compared to renewing her CD ladder.

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Sarah’s Experience

“I was nervous about moving money out of my bank, but the team at My Annuity Store walked me through everything. They explained the AM Best rating, the state guaranty protection, and how the 10% free withdrawal worked.”

“The best part? I don’t get a 1099 every year anymore. My CDs were creating a tax headache even though I wasn’t spending the interest. Now everything grows tax-deferred until I actually need it.”

“I tell all my teacher friends about this. We worked too hard to settle for 4% at the bank when 6%+ guaranteed is available.”

---

Could This Work for You?

Sarah’s situation is common among pre-retirees:

• ✅ Money in low-yield CDs or savings accounts
• ✅ 5-10 years from retirement
• ✅ Want guarantees without market risk
• ✅ Could benefit from tax deferral
• ✅ Don’t need immediate income

Disclaimer: This case study represents an actual client experience, but individual results will vary based on amount invested, state of residence, age, and product selected. Rates shown are subject to change. Client name changed for privacy.

How to Buy An Annuity at My Annuity Store

Common 5-Year MYGA Questions

1) What is a 5-year fixed annuity (MYGA)?

A 5-year fixed annuity–often called a MYGA (Multi-Year Guaranteed Annuity)–is a fixed annuity that credits a guaranteed interest rate for 5 years. In exchange, you agree to keep most of the money in the contract during the surrender-charge period.

2) Are the “best 5-year fixed annuity rates” the same for everyone?

Not always. The best rate available can vary based on your state, premium amount, timing, and the carrier’s current pricing. Some carriers also price differently for IRA vs. non-qualified funds.

3) How often do 5-year fixed annuity rates change?

Rates can change frequently–sometimes weekly or even daily–because carriers adjust pricing based on market yields and demand. If you’re rate-shopping, it’s smart to confirm the rate the day you apply and again when the application is accepted (carrier process varies).

4) What should I compare besides the interest rate?

Rate matters, but it’s not the only thing. Compare:

• Surrender charge schedule (length and percent)
• Free withdrawal provisions (often up to a percent annually)
• Renewal terms at year 5 (what happens after the guarantee)
• Financial strength ratings and carrier reputation
• MVA (Market Value Adjustment) (if included)

5) What is an MVA?

MVA (Market Value Adjustment) may apply if you withdraw more than the free amount or surrender early. It can increase or decrease what you receive depending on interest rates at the time of surrender. If liquidity is a priority, you’ll want to specifically compare MVA vs. no-MVA options.

6) Can I withdraw money during the 5-year term without penalties?

Most 5-year fixed annuities allow limited access via penalty-free withdrawals (commonly up to a stated percentage each contract year). Withdrawals above that amount may trigger surrender charges, and if you’re under 59½, taxable withdrawals may also face a 10% IRS penalty.

7) How is a 5-year fixed annuity taxed?

For non-qualified money, interest typically grows tax-deferred until you take withdrawals. Distributions are generally taxed as ordinary income to the extent of gains. If it’s inside an IRA/qualified account, taxation follows the rules of that account.

8) What happens when the 5-year term ends?

At the end of the guarantee period, you typically get a window to:

• Renew (roll into a new term at the then-current renewal rate),
• Withdraw/transfer funds during the penalty-free window, or
• 1035 exchange to another annuity (if appropriate).

9) Is a 5-year fixed annuity safe?

A fixed annuity is backed by the insurer’s claims-paying ability. Many consumers also like that MYGAs offer a guaranteed rate (no market downside), but you still want to evaluate the carrier and the contract terms carefully.

10) What’s the best way to lock in a top 5-year fixed annuity rate?

Start with a side-by-side comparison for your state and deposit amount, then pick the contract that balances rate + surrender terms + liquidity + MVA + carrier strength. The “best” choice is usually the best fit–not just the highest number.

i
Sources & Citations

We regularly update this page and cite primary sources, carrier filings, and regulator guidance:

1. National Association of Insurance Commissioners (NAIC).
   Buyer’s Guide for Deferred Annuities
2. Financial Industry Regulatory Authority (FINRA).
   Investor Education: Annuities
3. Federal Deposit Insurance Corporation (FDIC).
   Deposit Insurance: Know Your Risk
4. Internal Revenue Service (IRS).
   Publication 575 (2024): Pension and Annuity Income
5. National Association of Insurance Commissioners (NAIC).
   Consumer Resources
6. Northwestern Mutual.
   How is an Annuity Taxed?
7. Bankrate.
   Did You Inherit an Annuity? Beware of the 5-Year Rule
8. Internal Revenue Service (IRS).
   Publication 939 (12/2024): General Rule for Pensions and Annuities

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Disclosures

Fixed annuity (multi-year guaranteed annuity, or MYGA) rates displayed on this page are provided for informational purposes only. They are not guaranteed until your application is approved, and the insurance company issues the annuity contract. Rates and product availability are subject to change at any time without notice.

All guarantees are backed solely by the financial strength and claims-paying ability of the issuing insurance company. My Annuity Store, Inc. does not guarantee the performance or obligations of any insurance company or annuity contract.

My Annuity Store, Inc. sources fixed annuity and MYGA rate data through Annuity Rate Watch via an API integration. While we believe this information to be reliable, we cannot guarantee its accuracy, completeness, or that all rate changes are reflected immediately. Insurance companies may change rates or withdraw products at any time. Before you purchase an annuity, your licensed agent will confirm the current rate, product details, and state availability directly with the carrier.

Not all products, rates, or features are available in every state or to every client. Actual rates and product options may vary based on your state of residence, premium amount, issue age, tax status, and other factors specific to your situation.

My Annuity Store, Inc. is an independent annuity brokerage and is not owned by or affiliated with any insurance company. If you choose to purchase an annuity through us, we are paid a commission by the issuing insurance company. This compensation is paid by the insurer and does not reduce your annuity’s credited rate, account value, or contractual guarantees.

Annuities are long-term insurance contracts and may include surrender charges, market value adjustments, and tax penalties for early withdrawals. Withdrawals of taxable amounts are subject to ordinary income tax, and if taken before age 59½, may be subject to an additional 10% federal tax penalty. You should consult your own tax advisor regarding your individual circumstances.

Nothing on this page should be interpreted as individualized tax, legal, or investment advice. The information provided is general in nature and may not be appropriate for your specific situation. You should consult your own tax advisor, attorney, and/or financial professional before making any decision about purchasing an annuity or implementing any financial strategy.

5-Year Fixed Annuity vs. 5-Year CD: Which Pays More?

The most common alternative to a 5-year MYGA is a 5-year bank CD. Both lock in a rate for five years. But they are taxed differently, insured differently, and pay differently – and right now the rate gap is unusually wide.

On a $100,000 deposit, the after-tax difference is significant. At the 24% bracket, a 5-year CD at 4.65% grows to roughly $122,400 after taxes. A 5-year MYGA at 6.30% grows to approximately $135,970 gross – after paying taxes on the $35,970 gain at withdrawal, you keep about $125,161. That’s $2,700 more in your pocket, and the gap widens at higher tax brackets or larger deposits.

The CD makes more sense if you are under 59½ (the IRS 10% penalty eliminates the MYGA’s advantage) or if you need absolute FDIC certainty on amounts under $250,000. For everyone else, the math generally favors the MYGA.

What $200,000 in a 5-Year Fixed Annuity Actually Looks Like

Concrete numbers make this easier. Robert is 64, recently retired, and has $200,000 sitting in a savings account earning 4.3%. He is in the 22% federal tax bracket and does not need this money for at least five years.

Option A – Keep it in the savings account at 4.3%:

• Annual interest: $8,600, taxed at 22% = $6,708 net per year
• After 5 years (net, after annual taxes): approximately $233,500

Option B – 5-year MYGA at 6.30%:

• Annual interest compounds tax-deferred – no 1099 each year
• Balance after 5 years: $270,700
• Taxes owed at withdrawal on $70,700 gain (22%): $15,554
• After-tax value: $255,146

Robert keeps $21,646 more with the MYGA. He also has the option to roll it into a new annuity via 1035 exchange at maturity – continuing to defer taxes – rather than taking a taxable lump sum.

How Do 5-Year MYGA Rates Compare to Fidelity Fixed Annuities?

Fidelity offers fixed deferred annuities through its platform, displaying rates from several major carriers. Their available rates are competitive but come from a curated set of insurers Fidelity has vetted and chosen to feature – not the full independent market.

As of April 2026, Fidelity’s 5-year fixed annuity offerings typically range from 5.00% to 5.65% from carriers like MassMutual, New York Life, and Western National. Those are solid rates from highly-rated companies.

The difference: independent brokerages like My Annuity Store access the full independent market – including carriers like Midland National, Athene, American Equity, and others that consistently appear at the top of rate comparisons but do not distribute through Fidelity’s platform. That is how independent agents are frequently able to quote rates 0.50% to 0.75% higher on equivalent quality products.

The best approach: use Fidelity’s rates as a benchmark, then compare to the broader market through an independent source. If you are already a Fidelity customer, that convenience has real value – but it is worth knowing what you are leaving on the table.

Are 5-Year Fixed Annuity Rates Going Up or Down?

5-year MYGA rates peaked in late 2023 and have gradually declined as the Federal Reserve began cutting rates in the second half of 2024. However, the decline has been slower than many expected – rates that hit 6.50% in late 2023 are still 6.30% in April 2026, a decline of just 20 basis points over roughly 18 months.

The reason rates have held: insurance companies invest predominantly in investment-grade corporate bonds with 7-12 year durations. Those bond portfolios are rolling over slowly, which means the higher-yield bonds purchased in 2022-2023 are still generating strong returns – and carriers are passing some of that through to MYGA crediting rates.

The projection: most rate forecasts suggest 5-year MYGA rates will decline another 0.25% to 0.75% over the next 12-18 months as older bond positions mature and get replaced at lower current yields. If you are considering a 5-year MYGA, the window for the current rate level is narrowing – not closing, but narrowing.

That said, nobody times annuity markets perfectly. A 6.30% guaranteed rate for five years is objectively strong by any historical standard. Waiting for a hypothetical return to 6.50% while rates drift to 5.75% would cost you more than the 0.20% you were waiting for.

Frequently Asked Questions: 5-Year Fixed Annuity Rates