Fixed Annuity Rates
Today’s Best Fixed Annuity Rates for Multi-Year Guaranteed Annuities (MYGAs)
Top Fixed Rate Annuities for December 2024
Below, you’ll find the highest fixed annuity rates and product details for multi-year guaranteed annuities (MYGAs). These fixed annuities provide a guaranteed rate of return for a set period, typically ranging from two to ten years. MYGAs come with no annual fees but are subject to surrender charges. These charges are penalties for withdrawing funds beyond the free-withdrawal limits before the end of the specified term.
Top Fixed Annuity Rates by Term Length
Below, you’ll find the highest fixed annuity rates available by term length. In MYGAs, the term length represents both the contract duration and the guaranteed rate period. Keep in mind that fixed annuity rates can vary by state and may change daily. To ensure you’re accessing the most accurate and up-to-date rates for your state, request Today’s MYGA Report above. Scroll down to explore all available fixed annuity rates.
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| Company | Product | Length | Minimum Premium | Interest Rate | A.M. Best Rating | |
|---|---|---|---|---|---|---|
| AmFirst | Axonic Waypoint | 2 Years | $100,000 | 5.20% | A- | Quote Calculator |
| AmFirst | Axonic Waypoint | 3 Years | $100,000 | 5.35% | A- | Quote Calculator |
| Sagicor Life | Milestone Max MYGA | 4 Years | $75,000 | 5.20% | A- | Quote Calculator |
| AmFirst | Axonic Waypoint | 5 Years | $100,000 | 5.55% | A- | Quote Calculator |
| Sagicor Life | Milestone Max MYGA | 6 Years | $75,000 | 5.45% | A- | Quote Calculator |
| Revol One | Excelera MYGA | 7 Years | $50,000 | 5.45% | B++ | Quote Calculator |
| Oxford Life | Multi-Select | 8 Years | $20,000 | 5.20% | A | Quote Calculator |
| Liberty Bankers Life | Heritage Premier | 9 Years | $10,000 | 5.16% | A- | Quote Calculator |
| Heartland National | Secure Rate MYGA | 10 Years | $5,000 | 5.55% | B++ | Quote Calculator |
All Fixed Annuity Rates
Use the menu to select a term length and view fixed annuity rates for specific durations. Rates and availability vary by state, so request Today’s MYGA Report for state-specific rates and detailed product information. For purchasing options, call us at 1-800-501-1984.
Understanding Fixed Annuity Rates
Fixed annuity rates are the interest rates set by insurance companies when you purchase a fixed annuity. These rates apply to your entire account balance annually. For example, if you invest $100,000 in an annuity with a 3% fixed rate for ten years, your account will grow to approximately $134,935 by the end of the term.
You might wonder why the total isn’t exactly $130,000, given that 3% of $100,000 equals $3,000 annually. The additional $4,935 comes from the power of annual compounding. After the first year, your account grows to $103,000. In the second year, you earn 3% on $103,000 instead of the original $100,000. This compounding effect continues, increasing your overall yield over time.
An Overview of Multi-Year Guaranteed Annuities (MYGAs)
What Are Multi-Year Guaranteed Annuities (MYGAs)?
A Multi-Year Guaranteed Annuity (MYGA) is an insurance company product that works similarly to a bank CD. You deposit a lump sum, and the insurer guarantees a fixed interest rate for a specified term. MYGAs are straightforward, with no hidden fees or unexpected changes after purchase.
As a type of fixed annuity, MYGAs provide a guaranteed rate for the full contract period, ranging from one to ten years. Current top rates fall between 5.00% and 5.55%, depending on the term length.
What Happens When the Contract Ends?
At the end of the contract, policyholders have several options:
- Withdraw funds as a lump sum.
- Reinvest in a new annuity.
- Leave the funds in place to earn the renewal rate.
Policyholders typically have 30 days to decide. If no action is taken, the contract will automatically renew at the prevailing rate.
How Do MYGAs Compare to Other Annuities?
While MYGAs are technically deferred fixed annuities, their fixed rates are guaranteed for the entire term. For example, a seven-year MYGA with a 6% rate ensures that rate for all seven years. In contrast, traditional deferred fixed annuities might start with a similar rate but allow adjustments after the first year.
MYGAs vs. Bank CDs
Although MYGAs and bank CDs share a similar structure, they differ in several important ways:
- Issuers:
- CDs: Issued by banks and insured by the FDIC up to $250,000 for non-retirement accounts.
- MYGAs: Offered by insurance companies and backed by state guaranty associations, with coverage ranging from $100,000 to $300,000 depending on your state.
- Tax Advantages:
- MYGAs: Growth is tax-deferred, and transferring funds between MYGAs via a 1035 exchange avoids taxable events.
- CDs: Generate taxable income annually, reported via 1099-INT forms.
- Access to Funds:
- MYGAs: Allow partial withdrawals (typically up to 10% annually) without penalties.
- CDs: Require full liquidation and impose fees for early withdrawals.
Additionally, MYGAs often allow you to withdraw interest as monthly income. However, early withdrawals from any annuity before age 59.5 are subject to a 10% IRS penalty.
Key Takeaway
MYGAs provide a reliable, tax-efficient option for those seeking guaranteed returns over a fixed period. They offer greater flexibility than CDs and can complement a balanced financial strategy.
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Choosing Between A Fixed Annuity And A Bank CD
The most important consideration is age. Are you retired or close to retirement? Are you near or over the age of 59.5? If so, annuities will out-perform CDs because of their tax-deferral benefits and more competitive rates. If you’re a younger investor, go with CDs to avoid the 10% tax penalty.
As for choosing between fixed and MYGA annuities, there’s really little difference. With near identical benefits, go with whichever annuity happens to offer the higher rate. Just keep in mind that fixed annuities don’t necessarily guarantee their rate for the full term.
Guaranteed Rates
MYGA Rates remain consistent throughout the entire policy.
No Fees
There are no fees for MYGAs unless it’s surrendered early.
Tax Benefits
Annuities offer tax deferred growth.
Principal Protection
Principal is guaranteed and protected.
Latest Annuity News
3rd Quarter 2024 Annuity Sales Surge: A Deep Dive into U.S. Market Trends
According to LIMRA’s preliminary estimates, U.S. annuity sales surged by 29% in the third quarter of 2024 compared to the same period last year. Year-to-date (YTD) growth is also strong at 23%, reflecting increased demand across all annuity types. This broad growth suggests a rising interest among investors seeking stability in uncertain economic conditions.
Variable Annuities: RILAs Leading the Pack
Variable annuities showed robust growth, increasing by 25% from Q3 2023. A significant driver within this category was Registered Index-Linked Annuities (RILAs), which grew 37% year-over-year and 40% YTD. RILAs offer investors a balance between potential growth and downside protection, making them appealing in volatile markets. LIMRA’s data suggests that more investors are choosing products with capped growth and some loss mitigation, which RILAs provide.
Fixed Annuities Hold the Lion’s Share
Fixed annuities led sales across the board, particularly fixed-rate deferred and indexed annuities. Fixed-rate deferred annuities grew by 18% year-over-year, while indexed annuities saw an impressive 54% quarterly growth. This demand points to a clear trend: many investors prefer the security of fixed returns, especially as interest rates remain elevated. Fixed annuities give investors steady growth and guaranteed payouts, making them attractive in today’s economic climate.
Indexed Annuities: Gaining Traction
Indexed annuities, tied to financial indexes but without direct exposure to market losses, saw a notable rise in sales. Compared to Q3 2023, these products grew by 54%, indicating strong interest from consumers wanting moderate growth potential without risking principal. Indexed annuities’ gains are part of a larger trend toward products that blend growth and protection.
Structured Settlements and Immediate Annuities: A Stable Segment
While other categories saw higher growth, structured settlements and fixed immediate annuities remained steady. Fixed immediate annuities grew by 17% over the previous year, a sign that some investors value immediate income guarantees. Structured settlements held steady, showing no change quarter-over-quarter. These products meet the needs of investors seeking immediate income and stability, particularly in a high-rate environment.
Year-Over-Year Sales Comparisons by Annuity Type
Breaking down the data by product, variable annuities, RILAs, fixed deferred, and fixed immediate annuities all showed substantial YoY gains. Fixed deferred annuities led the charge, growing by 33% over last year, while indexed annuities closely followed. These increases reflect shifts in investor preferences, likely driven by economic uncertainty and a search for more predictable returns.
What 2025 Might Hold for Annuities
The trends of 2024 indicate potential for continued growth in products like RILAs and indexed annuities. If economic uncertainty persists, these options may remain popular due to their blend of growth and stability. Interest in fixed-rate and fixed-indexed products could stay strong if interest rates continue to hold. Investors looking to lock in steady returns may see annuities as a hedge against market fluctuations.
Frequently Asked Fixed Annuity Rates Questions
The most commonly asked questions regarding multi-year guaranteed annuities with fixed annuity rates.
Do MYGAs allow withdrawals from my annuity?
Most fixed annuities allow a specified amount to be withdrawn penalty-free. The allowable withdrawal amount will differ from company-to-company, so be sure to read the product specifics carefully. MYGA annuities allow penalty-free withdrawals of your earned interest or penalty-free withdrawals of 10% of your contract value each year.
What are the penalties for early surrender?
Multi-year guaranteed annuities have a surrender charge that declines over time. The surrender charge is as high as 10% in the first year. The surrender fee will decline each year. A surrender fee would be charged to any withdrawal greater than the penalty-free amount allowed by your specific annuity contract.
