Today’s Best Annuity Rates
- 1-Year: 4.15%
- 2-Year: 5.65%
- 3-Year: 6.01%
- 4-Year: 5.85%
- 5-Year: 6.00%
- 6-Year: 6.00%
- 7-Year: 6.05%
- 8-Year: 5.90%
- 9-Year: 5.80%
- 10-Year: 6.00%
- 20-Year: 4.90%
Key Takeaways:
- Insurance companies set annuity rates and establish a guaranteed minimum rate valid for the contract duration.
- Annuity rates haven’t just outpaced savings account and certificate of deposit interest rates–they’ve left them in the dust.
- Annuities are insurance contracts that come with some tax benefits and typically lower risks. Your return from investing in an annuity depends on how you want to receive your income streams (lump sum or a series of payments).
What Is An Annuity Rate?
An annuity rate is a percentage by which an annuity grows each year. The annuity provider sets the rate, usually an insurance company that issues the contract. The provider guarantees an interest rate for a set period of two to 10 years. This growth rate is different from an annuity payout rate, which refers to the payment amounts of regular distributions.
For MYGA and fixed annuity rates, the interest rate is fixed like a CD rate. However, the guaranteed rates make it easy to understand how much money you will get back.
Variable, income, and fixed index annuities are a little more complicated. They do not have a fixed interest rate like other types of annuities. That means people will not find the rates for those products when searching for the best kinds of annuities.
Best Guaranteed Annuity Rates For December 2023
The guaranteed interest rates for traditional deferred high-yield annuities and MYGAs make it easy to understand how much interest you will earn and the potential return on investment these products can provide over time.
It’s important to know that the rates for fixed annuities and MYGAs are not static and change regularly.
Multi-year guaranteed annuities (MYGAs) are fixed annuities that guarantee a set interest rate for any term between two and 20 years. As with regular fixed annuities, MYGAs may come with surrender charges – fees someone must pay if they cancel the account before the term is up. However, MYGAs do offer limited liquidity during the term to withdraw income.
The best MYGA rate is 5.45% for a 10-year surrender period, 5.40% for a seven-year surrender period, 5.60% for a five-year surrender period, 5.55% for a three-year surrender period, and 4.70% for a two-year surrender period. MYGA rates change daily.
Best 2-Year Annuity Rates
The following table illustrates the best fixed deferred annuity rates for a 2-year product. A 2-year annuity rate is the rate of return an investor would earn if they invest in an annuity for two years. After two years, the owner may transfer the funds without penalty. This rate is guaranteed and backed by the claims-paying ability of the issuing insurance company.
| Company | Rate |
|---|---|
| Americo | 5.05% |
| Oceanview | 5.65% |
Best 3-Year Annuity Rates
The following table illustrates the best rates for a 3-year annuity contract. A 3-year annuity rate is the rate of return an investor would earn if they invest in an annuity for three years. After three years, the owner may transfer the funds without penalty. This rate is guaranteed and backed by the claims-paying ability of the issuing insurance company.
| Company | Rate |
|---|---|
| Delaware Life | 5.70% |
| F&G | 5.70% |
Best 4-Year Annuity Rates
The following table illustrates the best rates for a 4-year contract. A 4-year annuity rate is the rate of return an investor would earn if they invest in an annuity for four years. After four years, the owner may transfer the funds without penalty. This rate is guaranteed and backed by the claims-paying ability of the issuing insurance company.
| Company | Rate |
|---|---|
| Clear Spring | 5.85% |
| Americo | 5.85% |
Best 5-Year Annuity Rates
The following table illustrates the best rates for a 5-year deferred fixed annuity contract. A 5-year annuity rate is the rate of return an investor would earn if they invest in an annuity for five years. After five years, the owner may transfer the funds from the savings accounts without penalty. This rate is guaranteed and backed by the claims-paying ability of the issuing insurance company.
| Company | Rate |
|---|---|
| Americo | 5.95% |
| Clear Spring | 5.90% |
Best 6-Year Annuity Rates
The following table illustrates the best rates for a 6-year contract. A 6-year annuity rate is the rate of return an investor would earn if they invest in an annuity for six years. After six years, the owner may transfer the funds without penalty. This rate is guaranteed and backed by the claims-paying ability of the issuing insurance company.
| Company | Rate |
|---|---|
| Americo | 5.95% |
| Oceanview | 5.90% |
Best 7-Year Annuity Rates
The following table illustrates the best rates for a 7-year contract. A 7-year annuity rate is the rate of return an investor would earn if they invest in an annuity for seven years. After seven years, the owner may transfer the funds without penalty. This rate is guaranteed and backed by the claims-paying ability of the issuing insurance company.
| Company | Rate |
|---|---|
| Americo | 5.95% |
| F&G | 5.90% |
Best 10-Year Annuity Rates
The following table illustrates the best rates for a 10-year contract. A 10-year annuity rate is the rate of return an investor would earn if they invest in an annuity for ten years. After ten years, the owner may transfer the funds without penalty. This rate is guaranteed and backed by the claims-paying ability of the issuing insurance company.
| Company | Rate |
|---|---|
| Equitrust | 6.00% |
| Delaware Life | 5.85% |
Immediate annuity payout rates vary based on your upfront payment to the insurance company. Specific contract terms, gender, age, and other factors can also impact this payout rate. You can use an annuity calculator to estimate monthly income payments or contact us to help you compare quotes. This does not include deferred income annuities or a qualified longevity annuity contract (QLAC).
Rates are based on a $100,000 annuity. Immediate Annuity payouts are annuitized annual payments. Income annuity rates change weekly. Contact us to estimate monthly payments.
| Payout | Age 60 | Age 65 | Age 70 |
|---|---|---|---|
| Single Life | $5,661 | $6,600 | $7,562 |
| Life With A 10-Year Period Certain | $5,697 | $6,533 | $7,275 |
| 10-Year Period Certain | $10,515 | $10,515 | $10,515 |
| 20-Year Period Certain | $6,053 | $6,053 | $6,053 |
Best Premium Bonus Annuity Rates For May 2023
The following table illustrates the best bonuses. Deferred annuities can offer a guaranteed sign-on bonus called a premium bonus. In addition, when new annuity owner purchases their deferred annuity, they may receive a guaranteed rate of return.
| Product | Bonus (Up To) |
|---|---|
| Athene Performance Elite | 20% |
| American Select Bonus | 18% |
| F&G Performance Pro | 15% |
| North American Secure Horizon Plus | 15% |
| Midland IndexBuilder | 20% |
Best Fixed Index Annuity Rates For December 2023
Fixed index annuity rates are slightly more complicated than a traditional fixed annuity or MYGA. Index annuities allow annuity owners to choose how they earn interest, a fixed interest rate, or the performance of an index like the S&P 500 or a combination of both.
Fixed-indexed annuities are not stock market investments and do not directly participate in an index. Instead, they are insurance policies for retirement and can not lose money in a stock market crash.
These fixed-indexed annuity strategies illustrate the highest hypothetical historical rates of return (2010 – 2020). These are non-guaranteed returns. Contact us about the products with these strategies.
Best Index Annuity Rates
| Annuity Company | Fixed Indexed Annuity |
|---|---|
| AIG | Power Select Builder |
| Athene Annuity | Performance Elite 15 Plus |
| Midland National | RetireVantage Annuity |
| Nationwide | Peak 10 |
Best Illustrated Fixed Indexed Annuity
The following indexes illustrate a hypothetical annuity return among index annuities. Of course, rates of Return are not guaranteed.
| Product | Rate of Return |
|---|---|
| 2-Year Dimensional US Foundations PTP Enhanced Participation Rate Tier 2 | 19.36% |
| 2-Year Nasdaq FC PTP Participation Rate | 19.21% |
| 1-Year Dimensional US Foundations PTP Enhanced Participation Rate Tier 2 | 18.34% |
Best Lifetime Annuity Rates For December 2023
Lifetime annuities provide annuity owners a guaranteed income for the rest of their lives or the rest of the annuity owner’s and spouse’s lives, even if the annuity has run out of money.
Fixed-income annuity rates are based on a $100,000 annuity. The retirement income start dates will be immediate, after five or ten years. Annuity payouts are annual payments.
| Age | Immediate | 5 Years | 10 Years |
|---|---|---|---|
| 60 | $6,813 | $10,255 | $15,688 |
| 65 | $7,375 | $11,265 | $16,986 |
| 70 | $7,750 | $12,197 | $18,420 |
Best Short-Term Annuity Rates For December 2023
Deferred annuity terms can be as short as two years in length. Here are the best short-term annuity rates from 2 to the best 5-year annuity rates.
| Company | Term | Rate |
|---|---|---|
| Oceanview | 2 Years | 5.65% |
| F&G | 3 Years | 5.70% |
| Americo | 4 Years | 5.85% |
| Americo | 5 Years | 5.95% |
Annuities Comparison Rates
It can be challenging to compare annuity rates because traditional fixed annuities guarantee an interest rate for a set number of years. In contrast, variable annuities don’t have guaranteed interest rates–their earnings depend on the stock market. Another type of annuity, the fixed index annuity, has a fixed interest rate and unique crediting methods based on how well stocks perform. This makes a direct comparison of annuities challenging.
Next Steps
Finding the best-guaranteed annuity rates, immediate annuity rates, premium bonus annuity rates, and more can be challenging. But that’s where we come in – we’re here to help you compare quotes from some of the top life insurance companies and find the perfect plan for your retirement savings needs. Use our annuity rate calculator to get an estimate today, then request a quote and see how much you could save!
Request Annuity Rates
Frequently Asked Questions
What is an annuity rate?
Annuity rates are the percentage by which an annuity increases each year. Insurance companies set annuity rates. The return rate for annuities is determined by how much money is invested, the interest rate, and the length of the contract.
Are annuity rates going up?
Yes, annuity rates are going up. This is due to a few different factors. First, the Federal Reserve has recently raised interest rates. This means that banks and other financial institutions can charge more for loans, which include annuities.
What is today’s best annuity rate?
After researching 1,107 annuities, today’s best annuity rates include a three-year annuity guaranteeing 6.01% APY. For a five-year, it’s 6.00%; for a 10-year annuity, it’s 6.00%.
What is the average interest rate on an annuity?
Interest rates depend on the type of annuity you buy. Fixed annuities offer guaranteed returns ranging between 3% and 5.25%, while the interest rates of variable annuities depend on the performance of a connected investment portfolio. Annuities with higher interest rates also carry a greater risk of losing money.
What is the rate of return on an annuity?
Annuities typically offer a fixed rate of return, meaning that your investment will earn a guaranteed interest rate over the annuity’s life. However, some annuities offer variable rates of return, which means that your investment’s interest rate will fluctuate along with the market. Variable annuities generally offer higher potential returns than fixed annuities but have higher risks.
What are the highest paying annuities?
Fixed index annuities pay more than fixed annuities. On the other hand, variable annuities pay more than fixed index but come with the highest risks.
What is the safest type of annuity?
The safest type of annuity is a fixed annuity. Fixed annuities offer guaranteed returns, meaning you will earn a set interest rate regardless of market performance. However, fixed annuities typically offer lower potential returns than other annuities.
What is the annuity rate today?
The best MYGA rate is 6.00% for a 10-year surrender period, 6.05% for a seven-year surrender period, 6.00% for a five-year surrender period, 6.01% for a three-year surrender period, and 5.65% for a two-year surrender period.
What is a reasonable interest rate on an annuity?
A reasonable interest rate on an annuity will depend on several factors, including the type of annuity, the insurer, and the individual’s financial situation. However, as a general rule of thumb, most experts agree that an interest rate of around 3-5% is suitable for an annuity.
Which annuity pays the highest interest?
Athene Maxrate Annuity currently pays the highest annuity rate, at 6.15%.
Will annuity rates rise in 2023?
Yes, annuity interest rates are rising in 2023 and will continue to rise for at least the rest of the year.
What is a good rate for a three-year annuity?
A good interest rate on a three-year annuity will again depend on several factors, but as a general rule of thumb, most experts agree that an interest rate of around 4-5% is considered a good rate.
What is the average return on an annuity?
The average return on an annuity will depend on the type and the individual’s financial situation. However, as a general rule of thumb, most experts agree that an interest rate of around 3-5% is considered a good rate on a fixed annuity, 5-6% on a fixed indexed annuity, and over 6% for a variable annuity.
How are annuity rates calculated?
The interest rate is calculated using many factors, including the current market conditions, the length of the annuity term, and the insurer’s claims-paying ability. Ultimately, the goal is to set the interest rate high enough to cover the insurer’s costs while providing a competitive return for the investor.
How often do annuity rates change?
Annuity rates can change daily, monthly, or annually, depending on the type of annuity and the insurer for new buyers. However, most annuities will have a set interest rate for the length of the contract after the purchase has been made.
What is the best annuity company?
The best annuity company can provide a competitive interest rate while maintaining high financial stability, customer service, and satisfaction. When choosing an annuity company, it is vital to research and ensure that you are comfortable with the company you are doing business with.
Will annuity rates rise as interest rates rise?
Yes, as interest rates rise, so will annuity rates. This is because annuities are directly tied to the interest rate market. When interest rates go up, so do annuity payouts. Conversely, when interest rates go down, annuity payouts will also decrease.
What affects annuity rates?
Several factors can affect annuity rates, including the type of annuity, the insurer, and the individual’s financial situation. However, annuity rates are directly tied to the interest rate market. When interest rates go up, annuity rates go up. Conversely, when interest rates go down, annuity rates go down.
Where are the best annuity rates?
The best annuity rates can be found by shopping around and comparing different insurers. The Annuity Expert currently provides the largest selection of annuities in the United States. However, it is essential to check annuity rates regularly to ensure you get the best possible rate.
At what point can I start receiving interest payments in an annuity?
Interest payments can start immediately or after a chosen deferral period.
Is there 30-year annuity rates?
30-year annuity rates measure the interest rates offered on annuities with a fixed term of 30 years. To calculate the rates, divide your investment by 30 and add 1.5% interest earned annually.
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- How Much Does a $250,000 Annuity Pay?
- How Much Does a $500,000 Annuity Pay?
- How Much Does a $1,000,000 Annuity Pay?
- How Are Annuity Rates Calculated?
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- Estimate Savings Growth With Our Retirement Calculator
As a seasoned financial expert with extensive knowledge of annuities, I'd like to delve into the key concepts and information provided in the article on annuity rates.
Annuity Rates Overview:
Annuity rates represent the percentage by which an annuity grows each year. These rates are crucial for investors considering annuities as part of their retirement strategy. The rates listed in the article are determined by insurance companies, specifically those issuing annuity contracts.
Guaranteed Minimum Rate and Insurance Companies:
Insurance companies set annuity rates and establish a guaranteed minimum rate valid for the contract duration. The rates mentioned, ranging from 1-year to 20-year periods, highlight the various options available to investors. It's important to note that these rates are not static and change regularly.
Types of Annuities:
-
MYGAs (Multi-Year Guaranteed Annuities):
- Fixed annuities guarantee a set interest rate for a specified term.
- Surrender charges may apply if the contract is canceled before the term ends.
- MYGA rates, ranging from 2 to 20 years, provide options for investors.
-
Fixed Deferred Annuities:
- The article outlines rates for 2, 3, 4, 5, 6, 7, and 10-year contracts.
- The interest rates are fixed, akin to CD rates, offering predictability.
-
Immediate Annuity Payout Rates:
- Payout rates vary based on factors such as age, gender, and contract terms.
- Annuity calculator or professional advice can help estimate income payments.
-
Premium Bonus Annuities:
- Some annuities offer bonuses upon purchase, enhancing the overall return.
-
Fixed Index Annuities:
- These annuities allow owners to choose how they earn interest, combining fixed rates and index performance.
- They provide a level of protection against market downturns.
Lifetime Annuities and Deferred Annuities:
-
Lifetime Annuities:
- Provide guaranteed income for the annuity owner's life or the joint lives of the owner and spouse.
- Rates are outlined for immediate, 5-year, and 10-year start dates.
-
Short-Term Annuities:
- Deferred annuity terms, as short as 2 years, with rates provided for up to 5 years.
Annuity Comparison Challenges:
Comparing annuities can be complex due to variations in types and features:
- Traditional fixed annuities have guaranteed rates.
- Variable annuities depend on market performance.
- Fixed index annuities blend fixed rates with market indices.
FAQ Highlights:
The article answers common questions about annuities, including:
- Factors influencing annuity rates.
- The impact of interest rate changes on annuity rates.
- Safety of different types of annuities.
- Strategies for finding the best annuity rates.
Additional Information:
- Historical hypothetical rates of return for fixed-indexed annuities.
- Premium bonus annuity rates and sign-on bonuses from various companies.
- Rates for different index annuities and their unique features.
Conclusion:
Navigating the world of annuities requires a nuanced understanding of guaranteed rates, contract terms, and the variety of annuity types available. For personalized advice and accurate comparisons, consulting a financial professional or using an annuity calculator is recommended.
For further assistance or specific inquiries, feel free to ask for tailored information based on your financial goals and preferences.
