Best Fixed Annuity Rates for April 2026

Compare Fixed Annuity Rates by Term

Fixed annuity rates usually vary by contract length. In some market environments, longer terms pay more because insurers can invest your premium for a longer period. In other cases, shorter or mid-range terms may be surprisingly competitive.

That is why it helps to compare rates by term instead of focusing only on the single highest offer on the paMost buyers begin by deciding how long they are comfortable locking in their money. A 3-year or 5-year term may fit someone who wants a solid guaranteed return without committing too far into the future. A 7-year or 10-year contract may make more sense for someone who values locking in a strong rate for as long as possible.

As you compare term lengths, consider:

• how long you can leave the money in place
• whether you may need access to principal before the surrender period ends
• how important tax-deferred growth is to your overall plan
• whether you may want to ladder annuities over time rather than commit everything at once

Best 3-Year Fixed Annuity Rates

A 3-year fixed annuity can be a good fit for conservative savers who want a guaranteed rate but do not want to lock up their money for too long. These contracts may appeal to buyers who are waiting to see where interest rates move next, building an annuity ladder, or setting aside a portion of retirement savings for near-term planning.

When comparing the best 3-year fixed annuity rates, pay attention to the guaranteed rate, the insurer’s AM Best rating, surrender charges, free withdrawal provisions, and minimum premium requirements.

Best 5-Year Fixed Annuity Rates

For many buyers, the 5-year MYGA is the sweet spot. It often offers a solid balance of yield and commitment. This makes it a popular choice for retirees and near-retirees.It provides guaranteed growth without a long surrender schedule.

Because 5-year products are so popular, buyers compare more than the top rate. They also look at the insurer’s strength and the contract’s flexibility. A slightly lower rate from a stronger carrier may be a better long-term choice, depending on your goals.
A better withdrawal provision may also be a good long-term choice.

Best 7-Year Fixed Annuity Rates

A 7-year fixed annuity can make sense for someone willing to commit for longer in exchange for a potentially higher guaranteed rate. These contracts are commonly used by people who want to lock in today’s yield environment and reduce reinvestment risk for a longer stretch of retirement.

Before choosing a 7-year contract, weigh whether the additional rate justifies the longer surrender period, how much liquidity you may need during the contract term, and whether a laddering strategy might provide more flexibility.

Best 10-Year Fixed Annuity Rates

A 10-year fixed annuity is typically chosen by buyers who want to lock in a guaranteed rate for as long as possible. These contracts often offer some of the highest advertised fixed annuity rates. This appeals to savers who value certainty. It also appeals to those who are comfortable with a long holding period.

Before selecting a 10-year product, look beyond the top rate and review the insurer’s financial strength, market value adjustment provisions, penalty-free withdrawal features, and suitability within your larger retirement income plan.

Pros and Cons of Fixed Annuities

Fixed annuities offer a combination of safety and predictability that appeals to conservative savers, but they are not the right fit for every situation. Here is a straightforward look at the tradeoffs.

Pros

• Guaranteed rate locked in for the full contract term, regardless of market conditions
• Principal protection from stock market losses
• Tax-deferred growth, meaning you do not pay taxes on gains until you withdraw
• No annual fees on most MYGA contracts
• No contribution limits for non-qualified (after-tax) funds, unlike IRAs or 401(k)s
• State guaranty association coverage provides an additional safety net (typically $250,000 or more depending on your state)

Cons

• Limited liquidity during the surrender period; early withdrawals may trigger penalties
• Opportunity cost if interest rates rise significantly after you lock in
• 10% IRS penalty on gains withdrawn before age 59 1/2
• Not FDIC insured; guarantees depend on the issuing insurer’s claims-paying ability
• Gains taxed as ordinary income when withdrawn, not at the lower capital gains rate

How Fixed Annuity Rates Work

A fixed annuity offers a guaranteed interest rate for a stated period of time. In most cases, when people search for fixed annuity rates, they are looking at multi-year guaranteed annuities (MYGAs). You place a lump sum with an insurance company, and the insurer guarantees a rate for the length of the contract. During that period, your money grows on a tax-deferred basis with no exposure to stock market losses.

The quoted rate is only one part of the contract. Two annuities may show similar yields but differ in surrender charges, free withdrawal provisions, market value adjustment rules, minimum premium requirements, and insurer financial strength. That is why the best fixed annuity is not always the one with the single highest rate.

What Affects Fixed Annuity Rates

Fixed annuity rates do not move randomly. Understanding how annuity rates are set can help you compare offers more effectively.

Market conditions and insurer strategy

Insurance companies invest premium dollars in bonds and other fixed-income assets. When Treasury yields rise, insurers have more room to offer higher annuity rates. Longer-term annuities often pay more because the insurer can invest your premium for a longer period. Some carriers compete aggressively on rate while others emphasize stronger ratings or broader withdrawal features.

Personal factors that affect your rate

Your rate can also depend on factors specific to you. State of residence matters because products are approved state by state. Premium amount can affect pricing, as higher deposits may qualify for enhanced rate tiers. Some products also vary by issue age. That is why two people shopping the same day may see different offers.

How To Compare Fixed Annuities Beyond the Highest Rate

The highest fixed annuity rate can get your attention, but it should not make the decision on its own. For a step-by-step walkthrough, see our guide on how to buy an annuity. A practical comparison comes down to four questions:

1. How strong is the insurer? Review the company’s AM Best rating. Guarantees are only as reliable as the carrier behind them.
2. How long is your money committed? The surrender schedule tells you how long early withdrawal charges apply and how steep they are.
3. How much access do you have? Most contracts allow annual penalty-free withdrawals of 5-10% after year one. Some also include a market value adjustment.
4. Does this fit your plan? The right annuity supports your broader goals, whether that is preserving principal, creating tax-deferred growth, or positioning money for future income.

Fixed Annuities vs CDs and Treasury Bonds

Fixed annuities, FDIC-insured CDs, and U.S. Treasury bonds all appeal to conservative savers. They share the goal of protecting principal, but the tax treatment, liquidity rules, and long-term growth potential are different.

In many market environments, fixed annuities offer higher rates than CDs or Treasuries, especially on longer terms. The biggest advantage is tax deferral: you do not pay taxes on gains each year, which allows your money to compound more efficiently. Try our CD vs. Annuity Calculator to see the difference for your situation.

The tax-deferred advantage becomes even clearer when you compare the tax-equivalent yield. For a saver in the 24% federal bracket, a 5.50% MYGA produces the same after-tax return as a 7.24% taxable CD or Treasury. The higher your bracket, the wider the gap.

Fixed annuities may be a better fit for retirement dollars you can leave in place for 3+ years, especially if you want tax-deferred growth and higher guaranteed rates. CDs may be a better fit for short-term cash you may need soon with the comfort of FDIC insurance. Treasuries may be a better fit for portfolio diversification and government-backed liquidity. Many savers use a combination of all three. For more detail, see our full fixed annuity vs. CD comparison and our annuity vs. Treasury bonds guide.

Are Fixed Annuity Rates Expected To Go Up or Down?

No one can predict future fixed annuity rates with certainty. Rates generally move in response to interest-rate trends, bond yields, and insurer pricing decisions, which means they can change quickly when market conditions shift. For current context, see our how annuity rates are set overview.

A better approach than trying to time the market is to focus on whether today’s available rates are attractive relative to your goals. If a current rate helps you secure guaranteed growth and fits your timeline, it may be worth serious consideration even if rates move somewhat afterward. See our guide on the best time to buy an annuity for more perspective.

Annuity laddering: a smarter approach to rate risk

For buyers concerned about timing, laddering can be a smart strategy. Instead of placing all of your money into one contract at once, you spread purchases across multiple terms.

For example, instead of buying a single $150,000 annuity, Jim invests $50,000 each in a 3-year, 5-year, and 7-year fixed annuity. When his first annuity becomes liquid in 2029, it will have grown to roughly $58,600. That money is now penalty-free. He could withdraw it, transfer tax-free to another annuity via a 1035 exchange, or let it renew at his insurance company’s new money rates. His other two contracts continue compounding tax-deferred, untouched.

This is a smart strategy because it diversifies your interest rate risk and provides more liquidity throughout your retirement. Every few years, a contract matures and gives you a decision point without triggering surrender charges.

What Happens When Your Fixed Annuity Matures?

When a fixed annuity reaches the end of its guarantee period, you typically have several options:

• Renew with the same carrier at whatever new rate they offer. This is the default if you do nothing, but the renewal rate is often lower than competitive new-money rates.
• Transfer to a new annuity via a 1035 exchange. This lets you move your full balance, including all gains, to a different carrier tax-free.
• Withdraw the money in full. You will owe ordinary income tax on the gains, and if you are under 59 1/2, a 10% IRS early withdrawal penalty may apply.
• Annuitize the contract to convert the balance into a stream of guaranteed income payments.

The most common choice is a 1035 exchange into a new MYGA at the best available rate. That is why many buyers build annuity ladders: each contract matures on a staggered schedule, giving you regular decision points without penalty.

Who Should Consider a Fixed Annuity?

A fixed annuity may be worth considering if you are nearing retirement and want to reduce volatility, want a portion of your savings in a guaranteed product, are comparing annuities to CDs or bonds, want tax-deferred growth, or value stability over market upside. For a broader look at how annuities fit into your plan, read our complete annuity guide.

How We Source and Update Our Fixed Annuity Rates

We regularly update our fixed annuity rate tables to reflect current offers available through participating insurance companies. Rates may vary based on state availability, premium amount, issue age, product rules, and whether the contract is available at the time of your request. Because annuity rates can change without notice, the rates shown on this page should be treated as current examples rather than a guarantee of future availability.

If you want help reviewing current availability or narrowing the list to products that fit your goals, request a free quote or call us at 855-583-1104. For a deeper look at our process, see how we get our rates and our review methodology.

Frequently Asked Questions About Fixed Annuity Rates