Fixed Annuity Rates

Current Fixed Annuity Rates For Multi-year Guaranteed Annuities (MYGAs)
Best Fixed Rate Annuities for May 2023
Below are the highest fixed annuity rates and product guidelines for multi-year guaranteed annuities (MYGA). MYGAs are a category of fixed annuities that offer a guaranteed fixed rate of return for a set period of time, typically two to ten years. MYGAs do not have annual fees, however they are subject to a surrender charges, which is a penalty imposed on an annuity holder if they withdraw funds (above the free-withdrawal limits) from the annuity before the specified time period is over.
Top Fixed Annuity Rates By Length
Listed below are the highest fixed annuity rates available by length. The length of a MYGA represents both the length of the contract and the guaranteed rate period. Fixed annuity rates can vary from state to state and change daily. Requesting Today’s MYGA Report above is the best way to ensure you are receiving the most accurate, up-to-date rates for your state. Scroll down to view all available fixed annuity rates.
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Company | Product | Length | Minimum Premium | Interest Rate | A.M. Best Rating | |
---|---|---|---|---|---|---|
Clear Spring | Preserve MYGA | 2 Years | $250,000 | 4.60% | A- | Quote Calculator |
Sentinel Security Life | Personal Choice | 3 Years | $10,000 | 5.40% | B++ | Quote Calculator |
Americo | Platinum Assure | 4 Years | $25,000 | 5.05% | A | Quote Calculator |
Atlantic Coast Life | Safe Haven | 5 Years | $5,000 | 5.45% | B++ | Quote Calculator |
Atlantic Coast Life | Safe Harbor | 6 Years | $5,000 | 5.43% | B++ | Quote Calculator |
Nassau | MYAnnuity | 7 Years | $10,000 | 5.45% | B++ | Quote Calculator |
American National | Palladium MYG | 8 Years | $250,000 | 5.45% | A | Quote Calculator |
American National | Palladium MYG | 9 Years | $250,000 | 5.45% | A | Quote Calculator |
American National | Palladium MYG | 10 Years | $250,000 | 5.45% | A | Quote Calculator |
All Fixed Annuity Rates
Select from the length menu to see the fixed annuity rates for specific terms. Rates and availability may vary by state. Request today’s MYGA report for state specific rates and product information. Call 1-800-501-1984 for purchasing options.
Fixed Annuity Rates Explained
Fixed annuity rates refer to the interest rate paid by an insurance company when you buy a fixed annuity. The interest rate is then applied to the entire account value each year. For example, if you invest $100,000 into an annuity earning a 3% fixed annuity rate each year for 10 years, your account would be worth approximately $134,935 at the end of 10 years.
You may notice an additional $4,935 in the account value. After all, 3% of $100,000 is $3,000, so why isn’t the account value $130,000 after 10 years? The reason for this is that fixed annuity rates are compounded annually. The account value is $103,000 after year one. You will then receive the 3% fixed annuity rate on $103,000 during year two, thus increasing the overall yield.
Overview of Multi-Year Guaranteed Annuities
Fixed Annuity Rates Today
A Multi-year guaranteed annuity is the insurance industries version of a bank CD. You give the insurance company a lump sum of money and that money receives a guaranteed interest rate for a set amount of years. There are no moving parts. This means there are never any changes to the fixed annuity rate and no surprises after your purchase.
Multi-year guaranteed annuities are a subcategory of fixed annuities. They guarantee a fixed annuity rate for the entire duration of the contract. MYGAs most closely resemble the structure of a bank CD, though there are significant differences between the two. MYGAs are available with contract lengths as short as one year, up to as long as ten years. The top current fixed annuity rates are between 4.60% and 5.65%.
What happens at the end of the annuity contract?
The policy owner has several options at the end of the contract. They can take the money in a lump sum, reinvested into another annuity, or keep it in place and receive the renewal rate. In most cases, you have 30 days to inform the insurance company of your intentions. If you don’t give any instructions to the insurance company, then the annuity will automatically renew at the fixed annuity rates available at that time.
Comparing MYGAs to Traditional Deferred Annuities
Multi-Year Guaranteed Annuities are technically deferred fixed annuities. However, there are differences between MYGAs and traditional deferred annuities. The key distinction between the two is the terms of the guaranteed rate.
The fixed annuity rates of MYGAs are guaranteed for the full contract term. A seven year MYGA with a fixed annuity rate of 6% will guarantee that rate for all seven years. Traditional deferred Fixed annuities offer similar (often slightly higher) fixed annuity rates, however the rate can change up or down after the first year.
MYGAs vs. Bank CDs
The overall structure of MYGAs are similar to bank CDs and they share many features, such as a set interest rate. However, many differences exist that investors should be aware of when deciding between the two.
Annuities are sold by insurance companies
Perhaps the biggest difference is the fact that CDs are issued by banks and MYGAs are issued by insurance companies. This means that CDs are insured by the FDIC up to $100,000 for non-retirement accounts. Annuities are not FDIC insured, but they are safeguarded by individual state reserves. Annuity coverage varies state-to-state, ranging from $100,000 to $300,000.
Fixed Annuities Receive Tax Deferred Status
Rolling over an annuity to a different annuity does not trigger a tax-event. Using what’s known as a 1035 exchange, the MYGA annuity owner can transfer money from one annuity to another without showing an income. This is not possible with CDs, which generate income statements every year.
Accessing Your Funds
A third difference is that you can make partial withdrawals from a MYGA. Unlike a CD, a typical MYGA will allow you to withdrawal up to 10% of the initial investment annually. This feature is very desirable because it covers unexpected withdrawal needs. In contrast, liquidating even part of a CD requires you to cash out the whole policy and pay a sizable fee.
Other features of MYGA annuities include the ability to withdraw interest as monthly income and the 10% IRS tax penalty. The first is a positive, the second is a negative. Remember that all annuities are subject to a 10% tax penalty when liquidated prior to the age of 59.5.
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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 Fixed Annuity News
Annuity Sales Reach Record Highs in 2022
Consumers invested a record-breaking $310.6 billion in annuities in 2022, fueled by stock market instability and recession concerns, according to Limra, an insurance trade group. This 17% increase over the 2008 record of $265 billion came during the S&P 500’s worst performance since 2008, which ended the year down 19.4%.
The surge in annuity sales was influenced by a combination of the US Federal Reserve’s interest rate hikes and declining US bond performance. Consumers favored fixed-rate deferred annuities, with sales reaching $112.1 billion, more than double the previous year and breaking the 2002 record of $80.8 billion. Indexed annuity sales reached $79.4 billion, an 8% increase from its 2019 record.
Variable annuities tied to the stock market saw a drop in sales with annual sales of $61.7 billion, the lowest since 1995. Long-term growth for annuity sales is expected due to demographic trends, such as baby boomer retirements, with the average buyer being around 63 years old.
Financial advisors warn that annuities may not be suitable for everyone. They may recommend single-premium immediate annuities or deferred-income annuities for retirees seeking a guaranteed monthly income for life, but not for those who have enough money to live comfortably in retirement. The decision to invest in annuities is often emotional, providing peace of mind for those who may not have enough money but want guaranteed income. It’s important to understand the benefits and limitations of different categories of annuities before making a decision.

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.