Top 5-Year Annuities for December 2024
Securing a stable and predictable return on your savings has never been more important, particularly in today’s dynamic economic landscape. Multi-Year Guaranteed Annuities (MYGAs) are a popular choice for those seeking guaranteed returns, offering a fixed interest rate over a specified period—typically 3 to 10 years. These products combine reliability with competitive rates, making them an excellent option for conservative investors looking to grow their wealth without market risk.
In this article, we present the top 5, 5-year MYGAs for December 2024, ranked from the highest to the lowest interest rate. Each selection is accompanied by detailed information about the product and a brief overview of the issuing company, helping you make an informed decision for your financial future.
Best 5 Year Annuity Rates
1. AmFirst Insurance Company (AM Best Rating: A-) – Axonic Waypoint MYGA High-Band
Product Details
The Axonic Waypoint MYGA High-Band offers an industry-leading interest rate of 5.55%, making it the top choice for December 2024. This product is designed for high-net-worth individuals, with a minimum premium of $100,000 required to qualify. While it doesn’t allow for free withdrawals in the first year or subsequent years, the competitive rate and financial security it provides make it an attractive option for those who can commit their funds for the full 5-year term. Additionally, the annuity caters to investors up to 89 years old, ensuring flexibility for older savers.
Company Overview
AmFirst Insurance Company, headquartered in Ridgeland, Mississippi, is a wholly owned subsidiary of AmFirst Holdings, Inc. Since its establishment in 1998, the company has achieved consistent growth through its commitment to delivering innovative insurance products and superior personal service. With a focus on utilizing cutting-edge technology, AmFirst ensures that its offerings meet the evolving needs of its customers. AM Best has affirmed AmFirst’s Financial Strength Rating of A- (Excellent), reflecting its stability and reliability (Source).
2. Baltimore Life Insurance Company (AM Best Rating: B++) – Iqumulate
Product Details
The Iqumulate MYGA from Baltimore Life Insurance Company offers a competitive interest rate of 5.50%, positioning it just below the top offering. This annuity requires a modest minimum premium of $5,000, making it accessible to a broad range of investors. While it does not permit free withdrawals during the term, the attractive rate ensures consistent growth over the 5-year period. With a maximum qualifying age of 90, it accommodates individuals planning their retirement income strategy.
Company Overview
Founded in 1882 as the Baltimore Mutual Aid Society of Baltimore City, Baltimore Life Insurance Company has a rich history of providing financial protection to families and businesses. Today, the company serves over 300,000 individuals, families, and businesses across 49 states and the District of Columbia. Now headquartered in Owings Mills, Maryland, the company specializes in offering products like fixed annuities, designed to provide financial security to the middle-income segment of the U.S. population. Baltimore Life holds an AM Best Rating of B++ (Good), indicating a stable financial outlook (Source).
Best 5 Year Annuity Rates
3. SBLI – Savings Bank Life Insurance Company of Massachusetts (AM Best Rating: A) – ECAccumulate
Product Details
The ECAccumulate MYGA from SBLI offers a competitive interest rate of 5.40%, positioning it as one of the top options for December 2024. This annuity requires a minimum premium of $25,000, making it accessible to a wide range of investors. Unlike some competitors, it allows for 5% free withdrawals starting in the second year, providing added liquidity during the term. With a maximum qualifying age of 85, the product caters to a broad spectrum of retirement savers looking for guaranteed growth over the next 5 years.
Company Overview
The Savings Bank Mutual Life Insurance Company of Massachusetts (SBLI) has been a trusted provider of life insurance and annuity products since its founding in 1907 by Supreme Court Justice Louis Brandeis. In 2017, SBLI transitioned to a mutual insurance company owned by its policyholders. Headquartered in Massachusetts, SBLI is known for its customer-focused approach and strong financial stability. The company holds an AM Best Rating of A (Excellent), reflecting its robust financial position (Source).
4. Revol One Insurance Company (AM Best Rating: B++) – Excelera MYGA
Product Details
The Excelera MYGA from Revol One Insurance Company offers a competitive interest rate of 5.40%, tying it with other leading options for December 2024. This product requires a minimum premium of $50,000 for non-qualified funds or $25,000 for qualified funds, providing flexibility based on investment type. While free withdrawals are not permitted during the 5-year term, the attractive rate and security make it an excellent choice for those seeking a fixed, reliable return. The maximum qualifying age for this product is 90, accommodating a wide range of retirement investors.
Company Overview
Revol One Insurance Company, formerly known as Pavonia Life Insurance Company of Michigan, has been operating since 1980 and was acquired by Axar Capital in 2022. Under its new ownership, Revol One has focused on annuity growth, offering innovative products like fixed indexed annuities and multi-year guaranteed annuities. The company’s management team brings over 20 years of industry experience at top-tier organizations, ensuring expertise and reliability in its offerings. Revol One holds an AM Best Rating of B++ (Good), indicating a stable financial outlook (Source).
5. Nassau Life and Annuity Company (AM Best Rating: B++) – Nassau MYAnnuity
Product Details
The Nassau MYAnnuity offers an interest rate of 5.40%, tying it with several other top options for December 2024. With a minimum premium of $10,000, this product is accessible to a wide range of investors. While it does not provide free withdrawal options during the 5-year term, its competitive rate ensures steady growth for individuals seeking a reliable and fixed return. The product accommodates a maximum qualifying age of 85, making it suitable for many retirement savers.
Company Overview
Nassau Life and Annuity Company is a subsidiary of Nassau Financial Group (NFG), a Hartford, Connecticut-based financial services company. Nassau Financial Group focuses on growth and innovation, with three interconnected business lines: insurance, asset management, and reinsurance. Through Nassau Life, the company offers a diverse portfolio of products, including fixed-rate and fixed indexed annuities, designed to provide flexible and effective solutions for retirement planning. Nassau Life holds an AM Best Rating of B++ (Good), demonstrating a stable financial foundation (Source).
Conclusion
Choosing the right Multi-Year Guaranteed Annuity (MYGA) can be a critical part of a well-rounded retirement strategy. The five MYGAs highlighted here stand out for their competitive interest rates, flexible features, and the financial strength of their issuing companies. These products offer a secure way to grow your savings while avoiding the volatility of the market, making them a strong option for conservative investors.
When selecting an annuity, it’s important to consider factors such as the interest rate, minimum premium requirements, withdrawal provisions, and the financial stability of the issuing company. Tools like AM Best ratings can provide valuable insight into a company’s financial health and ability to meet its obligations.
Why MYGAs Are a Great Option for Retirement Planning
MYGAs offer a unique combination of security and predictability. Unlike other investment options, these annuities provide a fixed return over the contract term, ensuring your money grows steadily. This makes them particularly appealing for individuals nearing retirement who are looking for guaranteed income to supplement other savings or Social Security benefits.
Compared to other fixed-income products like certificates of deposit (CDs), MYGAs often provide higher interest rates and offer tax-deferred growth. Additionally, MYGAs are not subject to early withdrawal penalties from the issuing insurance company after the initial surrender charge period ends, giving them an edge over some traditional savings vehicles.
Final Thoughts
The top 5-year annuities listed here for December 2024 represent some of the best options available in today’s market. By locking in these competitive rates, you can take a significant step toward securing your financial future. Whether you’re a conservative saver or someone looking for a reliable addition to your portfolio, a MYGA could be the perfect fit for your needs.
Before making a decision, consider consulting with a financial advisor to ensure the product aligns with your broader financial goals. Additionally, always request a personalized quote to understand how current rates and terms apply to your specific situation.
With the right MYGA, you can enjoy the peace of mind that comes with knowing your financial future is on a stable and predictable path.