Fixed Annuity Rates
Current Fixed Annuity Rates For Multi-year Guaranteed Annuities (MYGAs)
Best Fixed Rate Annuities for November 2024
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 | |
|---|---|---|---|---|---|---|
| AmFirst | Axonic Waypoint | 2 Years | $100,000 | 5.10% | A- | Quote Calculator |
| AmFirst | Axonic Waypoint | 3 Years | $100,000 | 5.20% | A- | Quote Calculator |
| Oceanview | Harbourview MYGA | 4 Years | $80,000 | 5.10% | A | Quote Calculator |
| Revol One | Excelera MYGA | 5 Years | $50,000 | 5.40% | B++ | Quote Calculator |
| Oceanview | Harbourview MYGA | 6 Years | $100,000 | 5.50% | 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 |
| Oxford Life | Multi-Select | 9 Years | $20,000 | 5.10% | A | Quote Calculator |
| Heartland National | Secure Rate MYGA | 10 Years | $5,000 | 5.55% | B++ | 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 represent the interest rate an insurance company pays when you purchase a fixed annuity. This rate applies to your entire account balance each year. For instance, if you invest $100,000 in an annuity with a 3% fixed rate over ten years, your account will grow to approximately $134,935 by the end of that period.
You may wonder why the account isn’t exactly $130,000 after ten years, given that 3% of $100,000 is $3,000. The additional $4,935 comes from annual compounding. At the end of the first year, the account grows to $103,000. In year two, you earn 3% on $103,000, leading to a compounding effect that boosts your overall yield over time.
Overview of Multi-Year Guaranteed Annuities
A Multi-Year Guaranteed Annuity (MYGA) is similar to a bank CD but offered by insurance companies. You deposit a lump sum with the insurer, and they provide a guaranteed interest rate over a set number of years. MYGAs have no complex terms or moving parts. Their rates are fixed, with no changes or surprises after purchase.
MYGAs are a type of fixed annuity, offering a guaranteed rate for the entire contract term. They most closely resemble the structure of a bank CD, although there are key differences. MYGAs are available with terms from as short as one year to as long as ten years. The top rates currently range from 5.00% to 5.55%.
What Happens at the End of the Contract?
When the contract ends, the policy owner has options. They can withdraw their funds as a lump sum, reinvest in a new annuity, or leave the funds in place to receive the renewal rate. Typically, policyholders have 30 days to inform the insurance company of their choice. If no instructions are given, the contract automatically renews at the prevailing rate.
Comparing MYGAs to Traditional Deferred Annuities
MYGAs are technically deferred fixed annuities but differ in how rates are set. With MYGAs, the fixed rate is guaranteed for the entire contract term. For example, a seven-year MYGA with a 6% rate will guarantee that rate for all seven years. In contrast, traditional deferred fixed annuities may have a similar rate initially, but the rate can change after the first year.
MYGAs vs. Bank CDs
While MYGAs and bank CDs share a similar structure, there are important differences to consider.
- Issuers: CDs are issued by banks, while MYGAs are issued by insurance companies. This affects their guarantees. CDs are FDIC-insured up to $250,000 for non-retirement accounts, while MYGAs are backed by state guaranty associations, with coverage ranging from $100,000 to $300,000, depending on the state.
- Tax Treatment: MYGAs offer tax-deferred growth. Transferring funds from one MYGA to another using a 1035 exchange does not trigger a taxable event, unlike CDs, which generate taxable income statements annually.
- Accessing Funds: MYGAs allow for partial withdrawals, typically up to 10% of the initial investment each year, without penalties. CDs, however, generally require full liquidation and impose fees for early withdrawals.
Other features of MYGAs include the option to withdraw interest as monthly income. However, be aware that early withdrawals from any annuity before age 59.5 are subject to a 10% IRS tax penalty.
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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.
