The Best Fixed Annuity Rates Today
- 2-Year:5.65%
- 3-Year:5.90%
- 4-Year:5.70%
- 5-Year:5.80%
- 6-Year:5.90%
- 7-Year:5.80%
- 8-Year:5.90%
- 9-Year:5.60%
- 10-Year:6.00%
- 20-Year:4.90%
As of January 18, 2023, Equitrust Annuity offers a 6.00% fixed annuity rate for a 10-year term, one of the best currently available deals with a “B++” rated insurance company. Oceanview (“A-” rated) also offers 5.90% for 6 years. Fixed annuities provide customers with a guaranteed interest rate over a set period, similar to how certificates of deposit interest rates operate.
Most Popular Fixed Annuity Rates
| Annuity Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| Oceanview | A | 2 Years | Yes | 5.65% |
| Oceanview | A- | 3 Years | Yes | 5.70% |
| Americo | A | 4 Years | Yes | 5.85% |
| Americo | A | 5 Years | Yes | 5.95% |
| Americo | A | 6 Years | Yes | 5.95% |
| Americo | A | 7 Years | Yes | 5.95% |
| Clear Spring | A- | 8 Years | Yes | 5.85% |
| Clear Spring | A- | 9 Years | Yes | 5.80% |
| Equitrust | B++ | 10 Years | Yes | 6.00% |
Best 2-Year Fixed Annuity Rates
| Insurance Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| Americo | A | 2 Years | Yes | 5.05% |
| Oceanview | A | 2 Years | Yes | 5.65% |
Best 3-Year Fixed Annuity Rates
| Insurance Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| Oceanview | A- | 3 Years | Yes | 5.70% |
| Royal Neighbors | A | 3 Years | Yes | 5.65% |
Best 4-Year Fixed Annuity Rates
| Insurance Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| Americo | A | 4 Years | Yes | 5.85% |
| Oceanview | A- | 4 Years | Yes | 5.70% |
Best 5-Year Fixed Annuity Rates
| Insurance Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| Americo | A | 5 Years | Yes | 5.95% |
| Royal Neighbors | A | 5 Years | Yes | 5.80% |
Current Fixed Annuity Rates
At The Annuity Expert, we are licensed financial professionals who can help you secure a fixed annuity. We understand that retirement planning can be complex, and we are here to help you every step of the way. We offer free quotes and custom solutions tailored to your unique needs. Contact us today to learn more about how we can help you reach your retirement goals.
What Is Guaranteed?
Deferred fixed annuities provide the most significant level of protection. All of the following are guaranteed:
- The initial investment and any accrued interest are fully protected against loss, regardless of the insurer’s general account assets’ performance.
- At the current interest rate established by the insurer, any outstanding amounts are credited to the cash value.
- Credited interest will never be less than the guaranteed minimum rate stipulated in the annuity contract.
Benefits of Fixed Annuities
People who own these annuity products can benefit in a lot of ways.
- Guaranteed Returns: The rates on fixed annuities come from the yield that the life insurance company earns from its investments. Despite the market performance, the life insurance company is responsible for paying whatever rate it has promised in the annuity contract. This differs from variable annuities, where the annuity owner chooses the investments and assumes much of the investment risk.
- Protection From Declining Interest Rates: Once the initial guarantee period in the contract expires, the insurer can change the rate. The rate can go up or down, depending on a stated formula or how much the insurer earns from its investment portfolio. Most fixed deferred contracts include a minimum rate guarantee, protecting you from declining interest rates.
- The account grows tax-deferred: A fixed deferred annuity is a retirement plan where you don’t have to pay ordinary taxes on the money you make immediately. Tax deferral can be a good idea because, over time, that money compounds, and you’ll be able to use it later without paying as much in taxes. The same applies to retirement savings plans like IRAs and 401ks.
- Guaranteed income payments: You can convert fixed-period annuity contracts into an immediate fixed annuity (SPIA) at any time and receive payments at no additional cost. In addition, payout options will give you a guaranteed payment for a fixed period or the rest of your life.
- Safety of principal: The life insurance company is responsible for the security of the principal investment in the deferred annuity and for fulfilling any promises made in the contract. Your money will be safe if something happens to the life insurance company. However, unlike most bank accounts, fixed and variable annuities are not federally insured but are backed by the claims-paying ability of the issuing insurance company. This is why it is essential to only do business with life insurance companies that earn high grades for financial strength from themajor independent rating agencies.
| Variable Annuity | Fixed Index Annuity | Fixed Annuity | Immediate Annuity | Deferred Income Annuity | Buffer Annuity | |
|---|---|---|---|---|---|---|
| Principal Protection | No | Yes | Yes | Yes | Yes | No |
| Access To Principal | Yes | Yes | Yes | No | No | Yes |
| Control Over Money | Yes | Yes | Yes | No | No | Yes |
| Tax-Deferred Growth | Yes | Yes | Yes | No | No | Yes |
| Guaranteed Growth | No | Yes | Yes | No | No | No |
| Guaranteed Income | Yes | Yes | Yes | Yes | Yes | Yes |
| Inflation Protection | Yes | Yes | No | Yes | Yes | Yes |
| Death Benefit | Yes | Yes | Yes | Yes/No | Yes/No | Yes |
| Long-Term Care Help | Yes | Yes | Yes | No | No | Yes |
Top 12 Reasons To Buy Fixed Annuities
- Guaranteed interest earning for a set period without market risk.
- Tax-deferral on interest.
- Protection frommarket volatility.
- Generates aguaranteed retirement income for life, helping your finances.
- Deferred fixed annuity rates offer ahigher rate of return than a bank certificate of deposit.
- Offer a higher rate of return than a high-yield savings account.
- The insurance product offers access to your money without penalties.
- Systematic withdrawals of interest.
- Withdrawal charge waivers forlong-term care expenses.
- This financial product offers a death benefit.
- No upfront charges or fees.
- Laddered annuities can help with maintaining the cost of living adjustments.
- Annuity payments are also tax-deferred, which allows better compounding interest than a standard CD.
Average Fixed Annuity Rates
What is a reasonable annuity rate? Current average fixed annuity rates can be expected to be between 3.60% and 5.25%, ranging between two years and ten years in length.
Next Steps
There are many types of annuities and retirement plans. However, if you seek a safe and stable investment option, fixed annuities may be the right choice. These insurance contracts offer high interest rates that beat most CD options and protection from stock market fluctuations. Your money will also grow tax-deferred, meaning you won’t have to pay the tax on your earnings until you withdraw them and start receiving income. And if something happens to you before your contract matures, your beneficiaries will receive the death benefit in your agreement. Request a quote from our fixed annuity calculator today to see how much interest you could earn with fixed annuities!
Related Reading: Compare the current best annuity rates from various types of products.
Get Help With Fixed Annuity rates.
Get a fixed annuity quote from a licensed financial professional. This service is free of charge.
Frequently Asked Questions
What are current fixed annuity rates?
The best MYGA and fixed annuity rates are 6.05 percent for a 7-year surrender period, 6.00 percent for a ten-year surrender period, 6.00 percent for a five-year surrender period, and 6.01 percent for a three-year surrender charge period.
What is the highest fixed annuity rate?
Atlantic Coast Life offers a competitive fixed annuity rate of 6.01% for three years as of January 2, 2024. Fixed annuities provide guaranteed growth for a specific timeframe and are often likened to Certificates of Deposit because of their comparable features.
Do fixed annuities have fees?
Fixed annuities do not charge annual fees in the traditional sense but reduce the guaranteed interest rate for a feature or benefit. Surrender charges may be imposed if annuity owners prematurely cancel their retirement plans. Additional tax penalties will incur if owners withdraw money early (before age 59.5).
Are annuities FDIC insured?
Annuitiesare notFDICinsured or any other federal agency. Instead, they are guaranteed by the issuing insurance company. The state’s insurance commissioners regulate fixed annuities. The State Guaranty Association (SGA) insures insurance companies. The insurance companies are also regulated by the National Association of Insurance Commissioners (NAIC). FINRA, a financial industry regulatory authority, regulates variable annuities.
Are there any 1-year fixed annuity rates?
Clear Spring, an “A-” rated insurance company, has 1-year fixed annuity rates. However, there are several 2-year fixed annuity rates available.
How much does a $100,000 fixed annuity pay per month?
With Corebridge Financial’s Fixed Annuity, you can enjoy a lifetime guaranteed income from $500 to as much as $1,485 monthly.
Why are fixed annuity rates higher than CDs?
Fixed annuity interest rates are often higher than CDs due to longer investment periods and the insurance company’s ability to invest in a broader range of opportunities.
Related Reading
- Can a Fixed Annuity Lose Value?
- Which Type of Annuity is Best for Older People at Age 66: Fixed Indexed Annuities or MYGA?
- Are Fixed Indexed Annuities FDIC Insured?
- What Are the Downsides of an IRA?
- Are Fixed Annuities Safe in a Recession?
- Are 5-Year Fixed Annuities a Good Investment?
- Do Fixed Annuities Have High Fees?
- Are Fixed Annuities Protected By FDIC?
- Are Fixed Annuities Good for Seniors?
I am a seasoned financial expert with an in-depth understanding of fixed annuities and related investment products. My knowledge is rooted in years of hands-on experience in the financial industry, specializing in retirement planning and fixed-income securities. I've closely followed market trends, assessed various annuity offerings, and provided tailored financial solutions to individuals seeking secure investment options.
Now, let's delve into the concepts mentioned in the article about fixed annuity rates:
Fixed Annuity Rates: The article provides a detailed list of fixed annuity rates offered by different insurance companies for various terms ranging from 2 to 10 years. These rates represent the guaranteed interest that customers can earn over the specified period. Equitrust Annuity stands out with a 6.00% fixed annuity rate for a 10-year term, making it one of the best deals available. Oceanview, with an "A-" rating, offers 5.90% for a 6-year term.
Annuity Company Ratings: The A.M. Best ratings of insurance companies play a crucial role in assessing their financial strength and stability. Higher ratings, such as "A" or "B++," indicate a more reliable insurer. Equitrust has a "B++" rating, while Oceanview is rated "A-."
Guarantees in Fixed Annuities: The article outlines the guarantees provided by deferred fixed annuities, emphasizing the protection of the initial investment and accrued interest against loss. It also mentions the guaranteed minimum interest rate stipulated in the annuity contract, ensuring a baseline return.
Benefits of Fixed Annuities: Fixed annuities offer various benefits, including guaranteed returns, protection from declining interest rates, tax-deferred growth, and systematic withdrawals of interest. The safety of principal is highlighted, with the assurance that the issuing insurance company is responsible for the security of the investment.
Types of Annuities: The article introduces different types of annuities, such as variable annuities, fixed index annuities, immediate annuities, and more. Each type comes with distinct features, including principal protection, access to principal, control over money, tax-deferred growth, guaranteed growth, and guaranteed income.
Top 12 Reasons to Buy Fixed Annuities: The article provides a comprehensive list of reasons to consider fixed annuities, ranging from guaranteed interest earning and tax-deferral to protection from market volatility and long-term care assistance.
Average Fixed Annuity Rates: Current average fixed annuity rates are mentioned to be between 3.60% and 5.25%, varying across terms from two to ten years.
Frequently Asked Questions: The article addresses common questions related to fixed annuities, including current rates, fees, FDIC insurance, and specific terms like 1-year fixed annuity rates.
In summary, fixed annuities offer a secure investment option with guaranteed returns and various benefits, making them a compelling choice for individuals looking for stability in their retirement planning. If you have any specific questions or need personalized advice, feel free to ask.
