Best Current Fixed Annuity Rates

Written by
Lindsey Crossmier
Lindsey Crossmier
Financial Writer
Lindsey Crossmier is an accomplished writer with experience working for The Florida Review and Bookstar PR. As a financial writer, she covers Medicare, life insurance and dental insurance topics for RetireGuide. Research-based data drives her work.
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Edited By
Lamia Chowdhury
Lamia Chowdhury
Financial Editor
Lamia Chowdhury is a financial content editor for RetireGuide and has over three years of marketing experience in the finance industry. She has written copy for both digital and print pieces ranging from blogs, radio scripts and search ads to billboards, brochures, mailers and more.
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Financially Reviewed By
Brandon Renfro, Ph.D., CFP®, RICP®, EA
Brandon Renfro, Ph.D., CFP®, RICP®, EA
Retirement and Social Security Expert
Brandon Renfro is a Retirement and Social Security Expert and financial planner. He focuses on helping clients create a secure financial future in retirement and co-owns Belonging Wealth Management. He is also a former finance professor and writes for several publications.
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Published: June 3, 2020
Updated: May 17, 2024
6 min read time
This page features 4 Cited Research Articles

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Key Takeaways

Annuity rates fluctuate weekly, and multi-year guaranteed annuities change daily. Choose how you want to receive payments and when, then you can get a general idea of a good interest rate range.
It's equally important to consider the company selling the annuity as it is the rate of the annuity. A high-interest rate won't matter if that company becomes insolvent.
In addition to rates, you should consider potential fees, inflation and investment protection when considering an annuity.

Best Annuity Rates This Week

Multi-year guaranteed annuities, also known as MYGAs, are a fixed annuity that locks in a stable interest rate for a specified time period. Surrender periods usually last three to 10 years.

Because MYGA rates change daily, RetireGuide and its partners update the following tables below frequently. It’s important to check back for the most recent information.

Below are examples of the best annuity rates as of May 2024.

Term	Rate	Provider	Product	AM Best Rating
1-Year	6.00%	GBU Financial Life Insurance Company	Future Flex 8	A-
2-Years	5.70%	Aspida Life Insurance Company	Aspida Advisory MYGA	A-
3-Years	6.05%	Aspida Life Insurance Company	Aspida Advisory MYGA	A-
4-Years	5.70%	Oceanview Life and Annuity Company	Harbourview Multi-Year Guaranteed Annuity	A-
5-Years	6.25%	Atlantic Coast Life	Safe Harbor Bonus Guarantee	B+
6-Years	6.30%	Atlantic Coast Life	Safe Harbor Bonus Guarantee	B+
7-Years	6.50%	Atlantic Coast Life	Safe Harbor Bonus Guarantee	B+
8-Years	5.50%	EquiTrust Life Insurance Company	Certainty Select	B++
9-Years	5.45%	American National Insurance Company	Palladium MYG	A
10-Years	6.90%	Atlantic Coast Life	Safe Harbor Bonus Guarantee	B+

Understanding Annuity Rates

Current annuity rates can mirror long-term bond interest rates. When bond rates increase, annuity rates also tend to rise. That’s because insurance companies invest most of their client’s capital in fixed income securities, such as conservative bonds.

The Federal Reserve predicts interest rates as high as 5.6% before the end of 2023, which could keep annuity rates on the higher end.

Olivia S. Mitchell of the Wharton School of the University of Pennsylvania offered RetireGuide her expert take on annuity rates. When asked if she predicts whether annuity rates will continue to rise in 2023, Mitchell told RetireGuide “Probably so, since it appears that the Federal Reserve will keep raising rates, seeking to squelch inflation.”

Interest Rate Predictions

2023
5.6%
2024
4.6%
2025
3.4%

These interest rate predictions, which can correlate with annuity rates, suggest that 2023 could be a good time to purchase an annuity with higher-than-average rates.

Remember that the best annuity rates today may be different tomorrow. It’s important to check with insurance companies to confirm their specific rates.

Several factors determine the rate you’ll receive on an annuity. Annuity rates tend to be higher when the general level of all interest rates are higher.

— Brandon Renfro, Ph.D., CFP®, RICP®, EA

The Best Annuity Companies and Providers of 2023

Comparing Annuity Rates

When comparing annuity rates, it’s important to conduct your own research and not solely pick an annuity simply for its high rate.

Annuities can be complex, each with their own benefits and risks that affect their rates.

Things To Remember When Comparing Annuity Rates:

Consider the type of annuity.: Each annuity type has a different range of average interest rates. For example, a 4-year fixed annuity could have a higher rate than a 10-year multi-year guaranteed annuity (MYGA).
Only compare annuity rates from financially strong insurance companies.: Annuities are not backed by the FDIC like other financial products. If that company goes broke or bust, you could lose money. However, it is important to note that most annuities are covered by state guaranty associations. Check a company’s financial strength by consulting nationally recognized impartial rating agencies, like AM Best. Most experts recommend only considering insurers with a rating of A- or above for long-term annuities.
Remember that your age and health affect your annuity rate.: Annuity income rises with the age of the purchaser because the income will be paid out in fewer years, according to the Social Security Administration. Don’t be surprised if your rate is higher or lower than someone else’s, even if it’s the same annuity type.

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What Determines the Average Return on Annuities?

The average return on annuities varies based on several factors, including whether they are fixed annuities, variable annuities or equity-indexed annuities.

Average Return Factors Based on Annuity Type

Fixed Annuity: For fixed annuities, the average return depends on the annuity’s term. Typically, the longer the term, the higher the rate of return.
Variable Annuity: The return on a variable annuity depends on the performance of the investment options you choose, and it may be similar to the rates you’d see with an index fund. The average return for a variable annuity fluctuates depending on how your investments perform. As of August 2023, New York Life’s variable annuities’ return rates hover around 6% to 8%.
Fixed-Indexed Annuity: Fixed-indexed annuities, also known as equity-indexed annuities, provide benefits of both fixed and variable annuities. They’re tied to the performance of a specific index — such as the S&P 500 or Dow Jones Industrial Average. The average return can be higher than the average fixed annuity return. However, equity-indexed annuities also provide a guaranteed minimum return even if the stock market falters. Unlike a variable annuity, you don’t get the full effect of a stock market boom. The maximum return is also capped at a certain percentage. This helps pay for the guaranteed return during downturns.

What would a 10-year annuity look like? - Featuring Josh Curtis — Learn more about the structure of a 10-year annuity from Josh Curtis, founder and lead investment advisor of Clarity Financial LLC.

Other Considerations Beyond Annuity Rates

Annuity rates are just one factor to consider when buying an annuity. Ideally, you want to look for a high rate but also for a low minimum investment amount, low fees and an annuity that’s backed by a company with a history of financial stability.

What To Consider in Addition to Annuity Rates

Fees: Understand the fees you’ll have to pay for administering your annuity and if you cash it out. These costs can hit you all at once if you cash out — up to 10% of the value of your annuity, according to the Wisconsin Office of the Commissioner of Insurance. Or they can add up over time in the case of administrative fees. Make sure you calculate the cost as part of your overall return.
Inflation: Inflation can eat up your annuity’s value over time. You could consider an inflation-adjusted annuity that boosts the payouts over time. Understand, though, that it will significantly reduce your initial payouts. This means less money early in retirement but more as you age.
Protection: Unlike savings accounts, annuities are not insured by the federal government. However, your payouts are protected by your state’s guaranty association. The amount that’s guaranteed varies from state to state. The National Organization of Life & Health Insurance Guaranty Associations can help you find out how protected your investment is. Also, research the financial stability and history of an insurer before buying your annuity.

Beat the Bank With Fixed Annuity Rates As High As 6%

Start with a zero-commitment conversation to learn how annuities can help fund your retirement.
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Frequently Asked Questions About Annuity Rates

Can I get out of my annuity if my interest rates decrease?

In most cases, no, you cannot surrender your annuity if your interest rate decreases. However, there may be rare exceptions. Contact your insurer and review your contract to confirm your annuity’s rules.

Who sets annuity rates?

Insurance companies oversee setting and updating annuity rates.

Should you buy an annuity when interest rates are high or low?

It could be in your best interest to buy an annuity when interest rates are high. Annuity rates are known to be higher when interest rates are up.

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Last Modified: May 17, 2024

Lindsey Crossmier joined the RetireGuide team in 2022 as a writer to promote long-lasting financial literacy. She leverages her creative writing background, editorial experience and financial education from Yale to write retirement-focused financial content for those ready to prepare for their futures. Making complex information simple and accessible for all is her specialty.

Special focus on content about life insurance, Social Security, Medicare and certificates of deposits (CDs)
Research-based data drives her work
Bachelor’s degree in English from the University of Central Florida

Edited By

Financially Reviewed By

4 Cited Research Articles

U.S. Securities and Exchange Commission. (2023). Annuities. Retrieved from https://www.investor.gov/introduction-investing/investing-basics/glossary/annuities
New York Life. (2023). Variable Annuities. Retrieved from https://www.nylannuities.com/new-york-life-annuities/variable-annuities/#rates
Wisconsin Office of the Commissioner of Insurance. (2018, February). Consumer’s Guide to Understanding Annuities. Retrieved from https://oci.wi.gov/Documents/Consumers/PI-214.pdf
Social Security Administration. (2017, May 1). Social Security Retirement Benefits and Private Annuities: A Comparative Analysis. Retrieved from https://www.ssa.gov/policy/docs/issuepapers/ip2017-01.html

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