Fixed Annuity Rates – Compare Today’s Best MYGA Rates

How Fixed Annuity Rates Work

A fixed annuity, often called a multi-year guaranteed annuity (MYGA), pays a guaranteed interest rate for a set number of years. The term you choose — usually between 2 and 10 years — determines how long the rate stays locked in. This makes MYGAs a popular choice for people who want predictable growth without stock market risk.

Factors That Influence Today’s Annuity Rates

Insurance companies set MYGA rates based on prevailing interest rates, bond yields, and the financial strength of the carrier. When interest rates rise, annuity rates usually increase as well. Rates also vary by state and can change daily, which is why it’s important to compare multiple products before you buy.

Choosing the Right Term Length

Shorter-term annuities (2–3 years) provide flexibility if you expect rates to increase further. Longer-term contracts (7–10 years) usually offer higher yields in exchange for committing your money for a longer period. A balanced retirement portfolio often mixes different term lengths to provide both liquidity and higher guaranteed returns.

Why Compare Fixed Annuity Rates Online

Annuity rates are not standardized. Local agents may only represent a handful of carriers, while a nationwide comparison shows dozens of insurers side by side. Our rate tables are updated regularly, giving you direct access to the best options available in your state. This transparency helps you make an informed decision without guesswork.

Fixed Annuities vs. Bank CDs

Fixed annuities, also called MYGAs, are often compared to certificates of deposit (CDs). Both offer a guaranteed rate of return for a set term and protect your principal. The key differences come down to yield, flexibility, and insurance backing.

• Higher Yields: MYGAs typically pay higher interest rates than bank CDs of the same term.
• Liquidity: CDs may allow early withdrawal with a bank penalty. MYGAs allow annual penalty-free withdrawals, but larger amounts can trigger surrender charges.
• Insurance: CDs are backed by the FDIC. Fixed annuities are backed by the issuing insurance company and further protected by state guaranty associations (up to certain limits).

For savers who want the strongest yield on safe money, MYGAs can be an attractive alternative to CDs — especially in a higher interest rate environment. CDs, on the other hand, may work better for those who want shorter commitments or FDIC insurance.

Learn more in our full guide: Annuities vs. CDs: Which is Better for Retirement?

Fixed Annuity FAQ

How often do fixed annuity rates change?

Rates are updated daily and can change based on interest rate conditions and insurer pricing.

What is a multi-year guaranteed annuity (MYGA)?

A MYGA is a fixed annuity that locks in a guaranteed interest rate for a specific number of years, typically between 2 and 10.

Do MYGAs have annual fees?

MYGAs generally have no annual fees. Surrender charges can apply if you withdraw more than the free allowance during the term.

Are fixed annuities FDIC insured?

No. Fixed annuities are contracts issued by insurance companies. They are backed by the insurer’s financial strength and further protected by state guaranty associations up to certain limits.

What happens when a MYGA term ends?

At the end of the guarantee period, you can withdraw your funds, renew into a new rate period, or exchange the annuity for another product. If you do nothing, some contracts automatically roll into a one-year renewal period.

Can I withdraw money early from a MYGA?

Most MYGAs allow penalty-free withdrawals of up to 10% per year. Larger withdrawals may trigger surrender charges during the term.

How are fixed annuities taxed?

Interest grows tax-deferred until withdrawn. Distributions are subject to ordinary income tax, and withdrawals before age 59½ may also face a 10% IRS penalty.

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