Understand how annuity rates work, how different types of annuities compare, and where they can fit in your retirement plan.
If you're mainly here to compare annuity rates, start with today's fixed annuity (MYGA) rates or see income annuity payout examples.
An annuity is a contract with an insurance company. You give the insurer a lump sum or a series of payments, and in return the company provides either a guaranteed interest rate, a guaranteed income stream, or both. The details depend on the type of annuity you choose.
When people search for "annuity rates", they're usually asking one of two questions:
Use the resources below to understand each type of annuity and then compare today's rates side by side.
Fixed annuities, often called multi-year guaranteed annuities (MYGAs), offer a guaranteed interest rate for a specific term, like 3, 5, or 7 years. They are commonly used as a CD alternative for conservative investors who want tax-deferred growth and predictable returns.
Income annuities convert a lump sum of savings into a guaranteed stream of payments you can't outlive. Immediate annuities start paying within the first year. Deferred income annuities start later, often in your 60s or 70s, and can provide higher income in exchange for waiting.
Indexed annuities link potential interest to a market index such as the S&P 500, while still offering downside protection. They can be complex and are usually not the first choice for buyers who simply want the best available guaranteed annuity rate.
Because of that, we keep indexed annuity content in its own dedicated set of articles:
Annuities are one piece of a broader retirement strategy, usually alongside cash, CDs, bonds, and diversified stock funds. The main reason investors consider annuities is to trade some liquidity for guarantees: guaranteed rates on MYGAs, or guaranteed income from income annuities.
If you're not sure which type of annuity fits, start by looking at today's fixed annuity rates and then ask: Do I primarily need safe growth, or guaranteed lifetime income?
Once you understand the basics, the next step is to see real numbers based on your age, state, and investment amount.
We're an independent, annuity-focused firm. That means we can help you compare annuity rates and products from multiple insurers, not just one company's lineup.
