Goldstein Scorecard: B+ (dated October 4, 2026). See how it is graded.
USAA Fixed Indexed Annuity Review: 9.5% Cap, 7 Years (October 2026)
Written & reviewed by Hans Goldstein, Independent Licensed Insurance Producer · CA license 4273294 · NPN 20602398Facts verified against usaa.com's annuity rates and fixed index annuity pages (rates effective October 4, 2026) and USAA Life's company strengths sheet on October 4, 2026 · Updated
The USAA Fixed Indexed Annuity is a 7-year FIA issued by USAA Life Insurance Company. With rates effective October 4, 2026, usaa.com lists a 9.5% annual S&P 500 cap at 100% participation, a 4.0% fixed account and a $100,000 minimum. Surrender charges start at 9% (8% in California) and fall to 3% in year 7, with 10% free withdrawals a year after year 1. USAA publishes no minimum cap. It is not available in New York.
Correction (October 4, 2026): an earlier version of this page was titled "USAA Life Cornerstone FIA". USAA does not sell a product by that name. The product is the USAA Fixed Indexed Annuity, issued by USAA Life Insurance Company, and this page now reviews it from usaa.com's annuity rates page (rates effective October 4, 2026). Earlier ratings (S&P AA+, Moody's Aaa, Fitch AAA, Weiss, COMDEX) and the statement that USAA membership is required were not supported by USAA's documents and have been removed. USAA lists S&P AA and Moody's Aa1, and says membership is not required for its life and annuity products.
USAA Fixed Indexed Annuity current rates (effective October 4, 2026)
| Rate type | Rate | How it works |
|---|---|---|
| S&P 500 cap rate | 0% to 9.5% | Highest interest you can earn for the crediting period; declared annually at USAA's sole discretion |
| Participation rate | 100% | You get all of the index gain up to the cap |
| Fixed account rate | 4.0% | Declared annually; never below the contractual minimum |
| Rate lock | 30 days | Cap is the higher of the rate on your signed application date or contract date if USAA receives your money within 30 days |
Contract basics (verified)
| Feature | USAA Fixed Indexed Annuity |
|---|---|
| Issuer | USAA Life Insurance Company, San Antonio, TX |
| Term (surrender period) | 7 years |
| Minimum to open | $100,000 |
| Surrender charge, all states except California | 9%, 8%, 7%, 6%, 5%, 4%, 3% in years 1 to 7 |
| Surrender charge, California | 8%, 8%, 7%, 6%, 5%, 4%, 3% in years 1 to 7 |
| Free withdrawals | Up to 10% once a year after the first year; withdrawals in year 1, or above 10% later, pay the surrender charge |
| Market value adjustment | Not stated on usaa.com: not publicly disclosed |
| Minimum guaranteed cap | Not stated on usaa.com: not publicly disclosed |
| Minimum guaranteed interest rate when the annuity ends (USAA table) | Fixed indexed, 2 to 14 years: 1.7%. 15 years or longer: 3.0%. Re-determined at the end of any guaranteed period, except California and New York contracts, where it is fixed at issue |
| Income option | Transfer all or part of the balance, at least $20,000, into a USAA immediate annuity |
| Funding | Direct rollover, IRA transfer, indirect rollover, 1035 exchange or cash transfer |
| States | Not available in New York; USAA says its FIA material is not intended for residents of Idaho, North Dakota or Oregon |
| Contract forms | ICC2399755 06-23, ASP504431ST 07-23, ASP504389FL 07-23, ASP504351CA 07-23 |
| USAA membership | Not required for life and annuity products, per USAA Life's company strengths sheet |
Get an independent read on USAA Fixed Indexed before you sign.
Send your email and I'll send you what this product actually guarantees, what the surrender schedule really costs you, and the two or three carriers paying more for the same guarantee. If it's already a good fit, I'll tell you that.
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USAA's own fixed annuity, same company, same day
| Product | Rate, $100,000 to $249,999 | Surrender charge |
|---|---|---|
| USAA FGG, 3-year | 5.0% (New York 4.7%) | 9%, 8%, 7% |
| USAA FGG, 5-year | 5.6% (New York 4.9%) | 9%, 8%, 7%, 6%, 5% |
| USAA Fixed Indexed Annuity, fixed account | 4.0% (reset annually) | 9% to 3% over 7 years |
USAA's 5-year fixed annuity declares 5.6% for its whole term. The FIA's fixed account pays 4.0% and resets each year, on a 7-year schedule. The FIA only comes out ahead if the S&P 500 account averages more than the declared fixed annuity rate after the cap.
Goldstein Scorecard (dated October 4, 2026)
| Dimension | Grade | Basis (sourced fact) |
|---|---|---|
| Financial strength | A+ | AM Best A++ (Superior), Moody's Aa1, S&P AA, as of June 1, 2025, per USAA Life's company strengths sheet (form 5862572.3.0625). |
| Rate or cap competitiveness | B | 9.5% cap at 100% participation (October 4, 2026); the 4.0% fixed account is below USAA's own 5.6% 5-year fixed annuity and the 5.80% to 6.00% 5-year MYGA benchmark (September 24, 2026). |
| Guaranteed floor | Incomplete | No minimum cap is published. USAA does publish a 1.7% minimum guaranteed interest rate table for fixed indexed annuities of 2 to 14 years. |
| Liquidity | B | 7 years, 9% (8% in California) down to 3%; 10% free withdrawals a year after year 1, none in year 1. |
| Costs | A- | No rider or strategy fee is listed; the cost sits in the cap. |
| Transparency | B+ | Cap, fixed rate, surrender schedule and minimum rate table are published on a dated public page; the minimum cap is not. |
| Guaranteed minimum cap | Not publicly disclosed | USAA posts the current S&P 500 cap but no minimum cap (checked October 4, 2026). |
| Overall | B+ | A strongly rated issuer with a simple, published product; the open question is the cap floor. |
How these contract minimums compare across products: guaranteed minimum caps across FIAs (October 2026).
Get the current numbers for your amountor call 213-414-2808
Pros and cons
| Pros | Cons |
|---|---|
| AM Best A++, Moody's Aa1, S&P AA per USAA (June 1, 2025). | One index (S&P 500) and one 7-year term. |
| 9.5% cap with 100% participation, and no rider fees listed. | No published minimum cap; renewal caps are at USAA's sole discretion. |
| Rates, surrender schedule and minimum rate table are public and dated. | $100,000 minimum. |
| 10% free withdrawals a year after year 1. | No free withdrawal in year 1. |
| USAA membership not required for its annuities. | Not available in New York; FIA material not intended for Idaho, North Dakota or Oregon residents. |
Who it's for, and when to look elsewhere
Fits: a buyer with $100,000 or more who wants S&P 500 linked growth without index losses, from a very strongly rated issuer, and can leave the money for 7 years.
Look elsewhere if:
- You need access in year 1. There is no free withdrawal until after the first year.
- You want a written cap floor before you buy. USAA does not publish one; ask for the contract minimum in writing.
- You mainly want a known rate. A MYGA locks a declared rate for the term, backed by the claims-paying ability of the issuing insurer. USAA's own 5-year Fixed Guaranteed Growth annuity paid 5.6% on $100,000 or more (effective October 4, 2026). For comparison, A-rated-or-better insurers were paying about 5.80% to 6.00% on 5-year MYGAs and the best nationally available 5-year CDs about 4.35% to 4.50% APY on September 24, 2026 (AnnuityRateWatch carrier data; DepositAccounts). Current rates: MYGA rates.
Run the numbers: annuity surrender charge calculator and annuity calculator. Related reading: Thrivent Security Preference FIA review, Athene Performance Elite 7, FIA cap rates in 2026 and how annuity crediting actually works.
Questions to ask your agent
- What is the minimum guaranteed cap in my contract, and the minimum guaranteed rate on the fixed account? Please give them to me in writing.
- Confirm the surrender schedule for my state (9% to 3%, or 8% to 3% in California), whether any market value adjustment applies, and how the 10% free withdrawal works after year 1.
- What caps have in-force USAA Fixed Indexed Annuity contracts received at renewal since the product launched?
- Why this FIA instead of USAA's 5-year Fixed Guaranteed Growth annuity at 5.6%?
- How is the person selling this paid? Compensation comes from the insurer and is built into the product's pricing, not deducted from my premium. Is it a commission or a salary and bonus, and does a longer term pay more? (Background: how annuity commissions work.)
From my desk
When I review a USAA Fixed Indexed Annuity contract, I look for the minimum cap first. USAA publishes the current cap and a minimum interest rate table, but not the cap floor, and that floor is the only cap number that holds after year one.
The number buyers misread most is the "0% to 9.5%" cap. It is the ceiling for one year, not an expected return. In a flat year the account earns what the index earned, and in a down year it earns 0%.
Against a MYGA, I put the 4.0% fixed account next to a declared multi-year rate for a similar term. USAA's own 5-year fixed annuity at 5.6% is the first comparison, then the 5-year MYGA benchmark above.
Hans Goldstein, independent licensed insurance producer, CA license 4273294, NPN 20602398. No carrier paid for this review.
Frequently asked questions
Is there a USAA Life Cornerstone FIA?
No. USAA does not sell a product by that name. Its fixed indexed annuity is the USAA Fixed Indexed Annuity, a 7-year FIA issued by USAA Life Insurance Company.
What are the USAA Fixed Indexed Annuity rates?
With rates effective October 4, 2026, usaa.com lists a 0% to 9.5% S&P 500 cap with 100% participation and a 4.0% fixed account rate. Actual rates depend on your state of residence.
What are the surrender charges?
9%, 8%, 7%, 6%, 5%, 4% and 3% in years 1 to 7 in all states except California, where year 1 is 8%. After the first year you can withdraw up to 10% once a year without a surrender charge.
Do I need to be a USAA member to buy it?
No. USAA Life's company strengths sheet says USAA membership is not required for its life and annuity products.
Where is the USAA Fixed Indexed Annuity available?
It is not available in New York, and USAA says its FIA material is not intended for residents of Idaho, North Dakota or Oregon. The minimum to open is $100,000.
What is USAA Life's financial strength rating?
USAA Life's company strengths sheet lists AM Best A++ (Superior), Moody's Aa1 and S&P AA, as of June 1, 2025. Contract values depend on the claims-paying ability of USAA Life Insurance Company.
Sources (checked October 4, 2026)
- USAA, annuity rates and surrender charges page, rates effective October 4, 2026 (FIA cap, participation and fixed rates, FIA surrender charges, FGG rates, minimum guaranteed interest rates table, state notes and form numbers).
- USAA, USAA Fixed Indexed Annuity page, rate effective October 4, 2026 (7-year term, $100,000 minimum, 10% free withdrawals, funding options, $20,000 immediate annuity transfer).
- USAA Life Insurance Company, company strengths sheet (form 5862572.3.0625): ratings as of June 1, 2025; membership not required for life and annuity products.
- MYGA and CD benchmark: AnnuityRateWatch carrier data and DepositAccounts, September 24, 2026.
Get a second opinion before you sign
Talk to Hans Goldstein, a licensed independent insurance producer.
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.
Send your details. Within one business day you get a written review of your quote, a side-by-side with two alternatives, and a 15-minute call only if you want one.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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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.