Fidelity Annuities vs a Fixed Annuity (September 2026): The 0.25% Variable Annuity, and Fidelity's Own MYGAs
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Fees and product lineup checked on fidelity.com · Updated
Fidelity's Personal Retirement Annuity is a variable annuity with a 0.25% annual annuity charge (0.10% at $1 million or more), no surrender charges and a $10,000 minimum, plus fund expenses. It can lose value. Fidelity also sells fixed annuities, including its own 3- or 5-year MYGA, so the real choice is often Fidelity's MYGA vs another insurer's MYGA.
Correction (September 24, 2026): this page used to say Fidelity does not sell MYGAs and cited a "top MYGA 5.85%+ as of 6/8/26." Fidelity does sell MYGAs (below), and the MYGA benchmark has been updated to September 24, 2026.
Hans Goldstein is licensed to sell insurance products, not securities. He does not sell variable or registered index-linked annuities; this page describes the product from the issuer's public materials so you can ask better questions. For money you want guaranteed, he can quote fixed annuities (MYGAs) and income annuities.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge.
In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
Fidelity Personal Retirement Annuity (variable)
| Feature | Detail |
|---|---|
| Type | Variable annuity; value follows the chosen funds; can lose money |
| Annual annuity charge | 0.25% (0.10% for $1 million or more) |
| Surrender charges | None |
| Minimum investment | $10,000 |
| Fund choices | More than 65 funds |
Rates expire like milk.
The best MYGA, CD and savings rates change every few weeks. Get a short email when a rate on this page changes.
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Fidelity's fixed deferred annuities (MYGAs)
| Issuer | Product | Guarantee periods | Minimum |
|---|---|---|---|
| Fidelity Investments Life Insurance Co. | Fidelity Fixed Deferred Retirement Annuity (MVA) | 3 or 5 years | $10,000 |
| Guardian | Guardian Fixed Target Annuity | 3, 4, 5 or 6 years | $5,000 |
| MassMutual | MassMutual Stable Voyage | 3, 4 or 5 years | $10,000 |
| New York Life | Secure Term MVA Fixed Annuity IV | 3, 4, 5 or 6 years | $50,000 |
| USAA Life | USAA Protected Deferred Annuity (MVA) | 3, 4, 5 or 10 years | $50,000 |
| Western & Southern | SmartSelect (MVA) | 3, 4, 5 or 6 years | $20,000 |
Which one answers your question
| If you want | Look at |
|---|---|
| Principal protection and a known rate for 3-10 years | A MYGA. MYGA benchmark: insurers rated A or better topped out around 5.50%-6.05% on 5-year compound-interest MYGAs (public carrier rate sheets, October 14, 2026); rates vary by state, premium and carrier. |
| Lifetime income | An income annuity (SPIA/DIA); get quotes, payouts depend on age and sex |
| Tax-deferred market investing after maxing retirement accounts | A variable annuity or a taxable account; ask a securities-licensed advisor |
Current MYGA rates · MassMutual Stable Voyage review
Sources
- Fidelity Personal Retirement Annuity page
- Fidelity deferred fixed annuities comparison
- public carrier rate sheets (MYGA benchmark), October 14, 2026
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) and is not affiliated with Fidelity Investments. Figures are copied from the sources named, as of the dates shown; confirm current terms and rates with the issuer before you buy. MYGA figures are market benchmarks, not quotes.
Frequently asked questions
What does the Fidelity Personal Retirement Annuity cost?
An annual annuity charge of 0.25%, or 0.10% for contracts of $1 million or more, plus the expenses of the underlying funds. Fidelity says there are no surrender charges and the minimum investment is $10,000.
Does Fidelity sell MYGAs?
Yes. Fidelity sells its own Fixed Deferred Retirement Annuity (3- or 5-year rate guarantee, issued by Fidelity Investments Life Insurance Company) and, through the Fidelity Insurance Network, fixed deferred annuities from Guardian, MassMutual, New York Life, USAA Life and Western & Southern.
Can you lose money in the Fidelity Personal Retirement Annuity?
Yes. It is a variable annuity; the value follows the funds you choose. A fixed annuity (MYGA) guarantees principal and a rate for the term, backed by the insurer.
Is a variable annuity better than a taxable brokerage account?
Not automatically. Gains in an annuity are taxed as ordinary income when withdrawn and do not get a step-up in basis at death, while long-term gains in a taxable account are taxed at capital-gains rates. Hans is not securities-licensed and does not advise on variable annuities; talk to a securities-licensed advisor or tax professional.
Get a second opinion before you sign
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A fixed indexed annuity ties up your money for 7 to 15 years. Cap rates renew annually and can drop. Income riders have separate benefit bases that aren't cash. Get an independent review before you commit your retirement savings to a multi-year contract.
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Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.