Fixed Annuity Rates: What You Are Actually Being Quoted
Written & reviewed by Hans Goldstein, EA, Independent Licensed Insurance Producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Last reviewed 2026-10-07
Short answer
What are the highest fixed annuity rates today?
On the carrier rate sheets this site tracks, the highest A-rated multi-year guaranteed rates were 6.15% for 7 years and 6.05% for 5 years (Athene MaxRate, $100,000+, most states, rate card effective October 14, 2026); across A-rated-or-better insurers, 5-year MYGAs paid about 5.50% to 6.05% (public carrier rate sheets, October 14, 2026). Lower-rated insurers can quote more.
Make sure the rate is guaranteed for the whole term. A MYGA locks it for 3 to 10 years; a traditional fixed annuity may guarantee only the first year and then reset. Rates vary by state and premium and change weekly; the guarantee is backed by the claims-paying ability of the issuing insurer.
Two different products get sold under the phrase “fixed annuity rate,” and the difference between them is the whole story.
The two products
A multi-year guaranteed annuity (MYGA) guarantees one rate for the full term. 5% for five years means 5% in year five. A traditional fixed annuity may guarantee a rate for the first year only and then reset annually at the carrier's discretion, floored by a contractual minimum that is often 1% to 3%.
Both are legitimate. But a quoted “5.4% fixed annuity” means something very different depending on which one you are looking at, and the second is where people are surprised in year two. If certainty is the reason you are here, you want the MYGA. See MYGA rates.
What the guaranteed minimum actually protects
Every fixed annuity carries a guaranteed minimum interest rate. It is a floor against catastrophe, not a promise of a competitive rate. A contract crediting 5.4% in its first year with a 1.5% guaranteed minimum can legally credit 1.5% at renewal. That is the number to find in the contract before you sign, not after.
New money versus renewal
| New-money rate | Renewal rate | |
|---|---|---|
| Who gets it | New deposits | Existing contracts at term end |
| How it is set | Competitively, to win the deposit | At the carrier's discretion, above the contractual floor |
| Typical gap | n/a | Frequently well below the new-money rate |
| Your move | Shop it | Renew, cash out, or 1035 to a better carrier tax-free |
Carriers are not required to phone you at maturity. Calendar the date when you fund the contract. A 1035 exchange moves the money to a new carrier without triggering tax, which is the lever most people never use.
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.
We’ll email you when a rate on this page changes. Hans Goldstein · NPN 20602398.
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What moves the rate you are offered
- Term. Longer usually pays more, but not always. The curve is not straight, and a 5-year sometimes beats a 7.
- Deposit band. Many carriers pay more above $100,000. Landing just under a break costs real yield.
- State. Product availability and rates differ by state; the best national rate may not be for sale where you live.
- Carrier rating. The top of any rate sheet is usually a smaller carrier. You are trading some financial strength for the extra yield.
- Riders. Anything added (income riders, enhanced death benefits) is paid for out of the credited rate.
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.
How to shop a quote: 12 questions to get answered in writing
One proposal from one agent is not the market. Get at least three proposals, from two or more agents who place business through different marketing organizations, and put each one through the same sheet:
| Area | Ask | What a good answer looks like |
|---|---|---|
| Carrier | AM Best, S&P and Moody’s ratings? | A- or better, or a clear reason you accept less |
| Carrier | Guaranty association limit in my state? | A number for your state ($250,000 is common; New York is $500,000) |
| Carrier | Service record? | Something concrete, not “they’re great” |
| Rate | MYGA: the rate credited every year of the term, not just year one? | One rate for the full term, in writing |
| Rate | FIA: the minimum cap written into the contract? | The floor from the contract, not the headline cap |
| Rate | Renewal rate history on in-force contracts? | Documents, or an honest “I don’t have it” |
| Surrender | Surrender period and the year-by-year schedule? | Equal to the rate term on a MYGA |
| Surrender | Free withdrawal in year 1 and later years? | A percentage, including whether it is 0% |
| Surrender | Is there a market value adjustment? | Yes or no, and how it moves with rates |
| Riders | Income rider fee per year? | A percentage of the benefit base, or “none” |
| Riders | Benefit base vs account value? | Which number you can actually withdraw |
| Fees | Any other ongoing charges? Your commission? | Disclosed without a fight |
Traps the worksheet catches:
- Headline rate vs the rate for the whole term. A big first-year rate that steps down can average far less than a flat MYGA. Ask for the yield over the full term. Example.
- Surrender longer than the rate term. A “6-year” rate on a contract whose surrender charges run longer.
- 0% free withdrawal. Common on B+ and B++ contracts: any early cash pays the full surrender charge.
- Bonus vesting. A premium bonus that vests over years is partly or fully lost on an early surrender.
- Benefit base presented as cash. It only drives rider income; the surrender value is the account value.
- Cap resets and proprietary indices. Ask for a projection at the minimum cap and for the index’s actual credited history.
Two questions separate honest agents from pitch artists fast: “What other two or three products did you consider, and why not those?” and “What is your commission on this one?” An honest agent answers both without flinching.
Comparing against what you already hold
Most people arrive here holding a CD, a money market fund or a high-yield savings account. The honest comparison is after tax and after liquidity, not headline to headline. A fixed annuity defers the tax; a CD and an MMF do not. A savings account is liquid tomorrow; a fixed annuity is not for several years. Read annuity vs CD before deciding, and check the current HYSA and money market numbers so you are comparing against today's alternative rather than last year's.
Related reading
Want my independent take on whether this fits your situation?
I'm Hans Goldstein, an independent licensed insurance producer (NPN 20602398), appointed with multiple A-rated carriers. I run side-by-side comparisons against CDs, MYGAs, Treasuries, and MMFs every week for retirees and pre-retirees. Tell me what you're considering and I'll send back a written comparison.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
- Hans Goldstein, Enrolled Agent, admitted to practice before the IRS
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- Independent, not a captive agent: appointed with multiple A-rated carriers
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Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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FAQ
What is the current fixed annuity rate?
As of October 14, 2026, A-rated-or-better carriers were paying about 5.50% to 6.05% on 5-year MYGAs (public carrier rate sheets); lower-rated carriers can quote more. The best nationally available 5-year CDs paid 4.70% to 5.00% APY (Bankrate and Popular Direct, October 18, 2026). Traditional fixed annuities that reset annually generally credit less, because you are paying for flexibility.
Is a fixed annuity rate guaranteed for life?
Only for the guarantee period stated in the contract. After that the carrier sets a renewal rate, subject to a contractual guaranteed minimum that is usually far below market. The renewal is where most of the disappointment happens.
What is the difference between a fixed annuity and a MYGA?
A MYGA is a fixed annuity where the rate is guaranteed for the entire surrender term. A traditional fixed annuity may guarantee a rate for only the first year and reset after that. Same family, very different certainty.
Are fixed annuity rates negotiable?
The rate is not, but the product is. Carriers publish different rates by term, deposit band and state, and changing any of those can noticeably change the rate you are offered.