9-Year Fixed Annuity Rates
A 9-year fixed annuity allows you to earn a promised interest rate for nine years even if rates decline overall in the economy. You can get a guaranteed ROI with minimal risk, so fixed-rate annuities are worth exploring.
- Written by Christy Bieber
- Edited By
Michael Santiago, CRPC™
Michael Santiago, CRPC™
Senior Financial Editor
Michael Santiago, a senior financial editor, joined RetireGuide in 2023. With over 10 years of professional writing and editing experience, he brings a wealth of expertise in creating content for diverse industries, including travel and healthcare. Having traveled to more than 40 countries across five continents and lived in Europe and Asia for several years, Michael's global perspective enriches his work. He combines his strong writing skills, editorial judgment and passion for crafting accurate and engrossing content to enhance the user experience on RetireGuide.
Read More- Published: December 11, 2024
- Updated: December 12, 2024
- 7 min read time
- This page features 3 Cited Research Articles
- A 9-year fixed annuity typically offers higher interest rates than annuities with shorter terms.
- You get the benefit of knowing your rate is locked in for a full nine years.
- Your annuity is far less risky than equities since your returns are guaranteed.
You have many options when preparing for the future, including investing in a 9-year fixed annuity. A 9-year fixed annuity provides a predictable rate of return without the risks of the stock market and also offers you the benefit of deferred taxes on gains.
Read on to learn more about what a 9-year fixed annuity is, what the current rates are for this investment and how to decide if it fits into your portfolio.
What Is a 9-Year Fixed Annuity?
Fixed annuities are purchased from insurance companies and provide you with a guaranteed minimum return on investment for a set period. Terms on fixed annuities range from one year to 10 years.
When you choose a 9-year fixed annuity, your minimum rate is locked in. If you have a traditional fixed annuity, rates could change over time but can’t drop below the minimum. If you have a multi-year guaranteed annuity (MYGA), your rate will not change at all for a full nine years.
Like all annuities, 9-year fixed annuities present minimal risk and can offer tax-deferred growth. You can choose an immediate or deferred annuity depending on when you want to start receiving income and you’ll have the peace of mind of knowing you’ll earn a guaranteed rate of return for a long time. This ROI is typically higher than annuities with shorter terms, or than other similar investment options such as CDs and savings accounts.
Fixed annuities can be an ideal investment option for medium-term and long-term investment goals because of the predictable returns they offer.
How Do 9-Year Fixed Annuity Rates Work?
Interest rates fluctuate over time. With variable-rate investments, your rate can move up and down as economic conditions change.
With 9-year fixed annuities, you don’t have to worry about your ROI dropping. You have predictability regarding how much your investment will earn so you can ensure you achieve your financial goals. The stability this investment offers can give you peace of mind and allow you to avoid constantly having to keep tabs on your investments.
Nine-year fixed annuities typically pay you a higher rate than shorter-term fixed annuities because you are rewarded for being willing to commit your money for a longer period. Rates are closely linked to 10-year treasury yields, but annuities tend to be more flexible and customizable than treasury bonds. The ROI offered by a 9-year fixed annuity also tends to be higher than the ROI CDs offer, and there are few options for 9-year or 10-year CDs available.
You should shop around among insurers offering 9-year annuities to find which ones provide the best yields since there is variation among providers offering these financial products.
Learn More About Your Annuity Options
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Current 9-Year Fixed Annuity Rates
Here are 9-year fixed annuity rates as of October 22, 2024 from some top annuity providers.
| Provider + Product | Rate |
|---|---|
| American National Insurance Company Palladium MYG | 4.90% |
| Guaranty Income Life Insurance Company Guaranty Rate Lock | 4.70% |
| Oxford Life Multi-Select | 4.95% |
| Liberty Bankers Life Bankers Elite 9 | 4.80% |
The rates offered on new annuities can and do change over time. You may be offered a higher or lower rate when you make your investment. However, once you have invested, your rate can’t drop below the promised minimum.
Benefits of a 9-Year Fixed Annuity
- Your rate of return is guaranteed for nine years
- Your rate will be locked in for a longer period than most CDs or fixed annuities offer. You'll have the peace of mind of knowing how much your money will earn over time. Unlike variable rate savings accounts, your rate also won't trend downward due to changing economic conditions.
- Your principal is protected
- With your insurer and state guaranty agencies guaranteeing the annuity, you don't have to worry about losing any of your principal balance -- unlike if you invested in the stock market.
- You'll benefit from higher interest rates
- Your ROI should be higher than the returns you would earn on annuities with a shorter term or other investments such as CDs.
Risks of a 9-Year Fixed Annuity
You should also be aware that there are disadvantages to adding 9-year fixed annuities to your portfolio. Here are some of the biggest downsides.
- Inflation risk
- A surge in inflation during the nine years when your money is locked up in your annuity could mean that you don't earn enough to keep pace with inflation. You could lose buying power if the returns you earn are below year-over-year price increases.
- Limited liquidity
- Locking up your money for nine years is a long time. You will not be able to access your money without incurring penalties and fees, even if your financial situation changes and you need the funds.
- Insurer risk
- Since you need your insurer to be able to pay your promised returns, you must make certain the insurance company that issues your annuity remains financially viable for nearly a decade. That's a long time for things to go wrong, so it will be critical to find an insurer with solid financial strength ratings.
Although you can’t eliminate these risks, there are ways to mitigate them, including carefully researching insurers and evaluating your long-term financial goals before purchasing your annuity.
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Choosing the Best 9-Year Fixed Annuity Provider
With many different annuity providers, finding the right one is crucial to making a successful investment. Here are a few key things to look for to help ensure you select the provider that’s right for you.
- Interest Rates: Look at both the minimum interest rate and whether your annuity comes with a multi-year rate guarantee. This would lock in at your initial rate for the entire annuity period. Compare these rates among different annuity providers to find a 9-year annuity that provides the best ROI.
- Fees: Canceling your annuity or withdrawing money ahead of schedule comes with penalties, as giving up liquidity is part of the deal. Find out how much you'll pay if your circumstances change and you must access your money early.
- Financial Strength: Check the insurer's AM Best and S&P Global ratings to find out if the insurer has demonstrated solid financial strength. You don't want to buy an annuity from an insurer that's at risk of failing and being unable to pay as promised.
You should get quotes from multiple annuity providers online and be sure to consider all of these factors. A financial advisor can help you to evaluate your options and to ensure you understand all of the implications of your choice.
Is a 9-Year Fixed Annuity Right for You?
A 9-year fixed annuity requires you to tie up your money for nearly a decade, so you’ll need to make sure this is a smart financial move in line with your investment goals and risk tolerance.
If you are nearing retirement and don’t want to put too much money into equities where the risk of loss is greater, a 9-year fixed annuity may be the best choice for you. This is especially true if you think interest rates will continue to decline in the coming decade.
You should consider the big picture, including your long-term financial goals and the other assets in your investment portfolio, to decide if a 9-year fixed annuity makes sense for you.
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3 Cited Research Articles
- Guaranty Income Life Insurance Company. (2024, November 1). Interest Rate Bulletin. Retrieved from https://image.s12.sfmc-content.com/lib/
- Oxford Life Insurance Company. (2024, November 1). Current Rates. Retrieved from https://oxfordlife.com/agent/tools/current-rates/
- Liberty Bankers Insurance Group. (n.d.). Products. Retrieved from https://myportal.lbig.com/products-bankers9elite.php
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