If you’re shopping for the best fixed annuity rates right now, you’re in good company. Millions of retirees and near-retirees across the country are moving cash out of bank accounts and into multi-year guaranteed annuities (MYGAs) — and for good reason. Top MYGA rates have been running well above comparable bank CD rates for the past two years, and the tax-deferred growth adds a layer of value that a CD simply can’t match.
This page explains how fixed annuity rates work, what’s driving them in 2026, how to compare carriers intelligently, and what questions to ask before you sign anything. For personalized product recommendations, always speak with a licensed annuity agent who can review your full financial picture.
What Is a Fixed Annuity Rate — and What Is a MYGA?
A fixed annuity rate is the contractual interest rate an insurance carrier agrees to pay you for a set period in exchange for your premium deposit. The umbrella term “fixed annuity” covers a few different product types, but the one most buyers are looking for today is the multi-year guaranteed annuity (MYGA).
A MYGA locks in a single rate for the entire contract term — two years, five years, seven years, or longer. Your principal and the credited interest are backed by the claims-paying ability of the issuing insurance company, and growth accumulates tax-deferred until you withdraw it. You are not buying a bank product, and MYGAs are not FDIC insured, but state guaranty associations provide a layer of protection (limits vary by state — check your state’s association for specifics).
A traditional declared-rate fixed annuity, by contrast, typically only guarantees its rate for the first year and then resets annually at the carrier’s discretion. For buyers who want predictability, MYGAs are almost always the better fit.
Today’s Best Fixed Annuity Rates by Term
The table below reflects representative top-of-market MYGA rates as of early August 2026. Rates change frequently — sometimes weekly — so treat these as a directional snapshot rather than a live quote. A licensed agent can pull current rates for your state and deposit amount.
| Term | Approximate Top Rate | Notes |
|---|---|---|
| 3-Year MYGA | ~6.10% | Short-term option; roughly 1.0–1.3 pts above top bank CDs |
| 5-Year MYGA | ~6.80% | Most popular term; strong balance of yield and flexibility |
| 7-Year MYGA | ~7.20% | Highest fixed yields available; best for money you won’t need soon |
| 10-Year MYGA | ~6.25% | Common inside IRAs; useful as an anchor in a laddering strategy |
Rates shown are illustrative of current market conditions and are subject to change without notice. Availability varies by state and carrier. Guarantees are backed by the claims-paying ability of the issuing insurer. Not a bank product. Not FDIC insured. State guaranty association limits apply.
What Drives Fixed Annuity Rates?
Understanding what moves MYGA rates helps you make a smarter decision about when to lock in — and which carrier to trust with your premium.
1. Treasury Yields and Federal Reserve Policy
Insurance carriers invest your premium primarily in long-duration, investment-grade bonds — U.S. Treasuries and high-quality corporate debt. The yield those bonds generate sets the ceiling for what a carrier can pay you and still cover its operating costs and profit targets. When the 10-year Treasury trades near 4.5%, a 7-year MYGA paying a point or more above it is sustainable. When Treasury yields fall toward 3.5%, those rates become difficult to maintain and carriers pull them quickly.
Federal Reserve decisions ripple through the entire Treasury curve, which is why Fed meeting dates are closely watched by anyone shopping for fixed annuity rates. As of mid-2026, the Fed has shifted to a holding pattern after its rate-hike cycle, and the 10-year Treasury has settled in a 4.2%–4.5% range — keeping top MYGA rates near multi-decade highs.
2. Carrier Financial Strength and Investment Strategy
Not all carriers price the same way. A carrier with a conservative bond portfolio and heavy reinsurance will typically offer lower rates than one with a more flexible investment mandate — sometimes 50 to 80 basis points lower on the same term. This is why the highest rates on any rate table often come from newer or private-equity-backed carriers rather than the largest household names.
That doesn’t mean you should always chase the top rate. Carrier financial strength matters. Look at AM Best ratings and Comdex scores alongside the rate itself. A 7.00% rate from a carrier with a Comdex score of 55 is a different proposition than a 6.40% rate from a carrier with a Comdex score of 90. A licensed agent can walk you through what those scores mean for your specific situation.
3. Surrender Period and Product Design
The longer you agree to leave your money with the carrier, the higher the rate it can offer. A 10-year MYGA from the same carrier will typically pay 50 to 100 basis points more than a 3-year MYGA. Surrender charges — the fee for withdrawing more than the free-withdrawal allowance during the contract term — allow the carrier to commit to higher-yielding, longer-duration bonds because it knows most policyholders won’t exit early.
Most MYGAs allow a free withdrawal of 10% of the account value per year after the first contract year, which gives you more liquidity than many buyers expect. Always read the full contract terms before signing.
Fixed Annuity Rates vs. CD Rates vs. Treasury Bonds
The most common question from buyers is: “Why not just use a CD?” It’s a fair question. Here’s how the three main safe-money options compare at current market levels:
- Bank CDs (3-year): Top rates around 4.45%. Interest is taxable in the year it’s earned, even if you leave it in the CD.
- U.S. Treasuries (5-year): Yielding roughly 4.25%. Exempt from state income tax but fully taxable at the federal level.
- 5-Year MYGA: Top rates near 6.80%. Interest grows tax-deferred and is only taxed when you withdraw it.
The rate spread is only part of the story. On a $200,000 deposit over five years, the combination of a higher rate and tax deferral can produce meaningfully more after-tax growth than a CD at the same term — the exact difference depends on your federal and state tax brackets. A licensed agent or tax advisor can run those numbers for your specific situation.
One important distinction: CDs are FDIC insured up to applicable limits. MYGAs are insurance contracts backed by the issuing carrier’s claims-paying ability and, secondarily, your state’s guaranty association. These are different protection mechanisms, and understanding both matters before you decide.
Are Fixed Annuity Rates Going Up or Down in 2026?
As of August 2026, MYGA rates have drifted slightly below their 2024 peaks but remain elevated by historical standards. The Fed’s current holding pattern has kept Treasury yields — and therefore MYGA rates — relatively stable for most of the year.
What changes the picture is the Fed’s next meaningful move. If the Fed cuts rates aggressively in the second half of 2026, top 5-year MYGA rates could fall back below 6.00% within a quarter. If the Fed holds or signals a more restrictive stance, current rates should remain near their present levels.
The practical takeaway: trying to time the top of the fixed annuity rate market is difficult and often counterproductive. If today’s rate fits your retirement income plan, locking it in now removes the risk of rates moving lower before you act. That said, this is a decision best made with a licensed agent who understands your full financial picture — not based on rate-chasing alone.
Why Rates Vary Between Carriers
On any given day, the spread between the highest and lowest MYGA rate for the same term can be 100 to 150 basis points. That gap reflects real structural differences:
- Financial strength: The highest-rated carriers (AM Best A++ or A+) rarely lead rate tables. They compete on stability and brand, not yield. Higher rates often come from carriers with more aggressive investment portfolios.
- Distribution costs: Carriers that sell through independent agents typically have lower acquisition costs than those with large captive sales forces. Those savings can flow through as higher rates for buyers.
- Product features: Some high-rate MYGAs include market-value adjustments (MVAs), tighter free-withdrawal provisions, or longer surrender schedules. A higher headline rate with a restrictive MVA may not be the better deal once you account for the full contract terms.
A useful rule of thumb: if two carriers have similar financial strength ratings and comparable product features, the higher rate is the better choice. If one carrier’s Comdex score is significantly lower, the extra yield may not be worth the trade-off. A licensed agent can help you weigh those factors objectively.
Fixed Annuity Rates by Term: What Each Term Is Best For
3-Year Fixed Annuity Rates
Three-year MYGAs suit buyers who want a short, predictable return on cash they may need access to within a few years. Current top rates near 6.10% run well above comparable bank CD rates. Minimum deposits start as low as $2,500 with some carriers, and the standard 10%-per-year free-withdrawal provision adds meaningful liquidity.
5-Year Fixed Annuity Rates
The 5-year MYGA is the most popular fixed annuity term for a reason. It balances yield and flexibility in a way that works well as a CD alternative or as a fixed-income bucket inside a broader retirement plan. At current top rates near 6.80%, a $200,000 deposit compounds to roughly $271,000 at maturity — though your actual result will depend on the specific rate and contract terms you qualify for.
7-Year Fixed Annuity Rates
Seven-year MYGAs currently offer the highest fixed yields available, with top rates near 7.20%. The extra yield over a 5-year term becomes meaningful on larger deposits compounded over the full term. This term works best for money you’re confident you won’t need for at least seven years.
10-Year Fixed Annuity Rates
Ten-year MYGAs are commonly used inside IRAs and for longer-horizon accumulation strategies. Because the yield curve has flattened, 10-year rates don’t always exceed 7-year rates, but they provide durable rate protection and work well as the anchor position in an annuity laddering strategy.
Fixed Index Annuities: A Different Kind of Rate
Fixed index annuities (FIAs) work differently from MYGAs. Instead of a flat credited rate, a FIA links your interest credits to the performance of a market index — such as the S&P 500 — subject to a cap rate or participation rate. If the index rises, you earn up to the cap. If the index falls, you typically credit 0% for that year rather than losing principal.
Current top FIA cap rates on annual point-to-point strategies range from roughly 8% to 12%, depending on the carrier and index. The trade-off for that upside potential is that you give up some or all of the index’s actual gain in strong years, and the 0% floor means you don’t participate in losses — but you also don’t earn anything in a down year.
FIAs are more complex than MYGAs and involve more moving parts — caps, participation rates, crediting method choices, and optional income riders. If you’re considering a FIA, a conversation with a licensed agent is especially important before you commit.
How to Compare Fixed Annuity Rates Intelligently
- Look at the full rate, not just the headline number. Simple-interest MYGAs and compound-interest MYGAs with the same stated rate produce different outcomes over time. Confirm which method applies.
- Check the carrier’s financial strength. AM Best rating and Comdex score are the two most widely used benchmarks. Both matter, and neither should be ignored in favor of a slightly higher rate.
- Understand the surrender schedule. Know exactly what it costs to exit early and whether a market-value adjustment applies.
- Confirm state availability. Not every carrier is approved in every state, and guaranty association limits vary by state. Your agent can confirm what’s available where you live.
- Factor in taxes. MYGA growth is tax-deferred, not tax-free. Withdrawals are taxed as ordinary income, and early withdrawals before age 59½ may trigger a 10% IRS penalty in addition to income tax.
Ready to see what rates are available for your state, deposit amount, and preferred term? Talk to a licensed annuity agent who can pull current quotes from multiple carriers and walk you through the contract details — at no cost to you.
This page is for educational purposes only and does not constitute personalized financial or tax advice. Annuities are insurance contracts, not bank products or securities. Guarantees are backed by the claims-paying ability of the issuing insurance company. Not FDIC insured. State guaranty association limits apply and vary by state. Consult a licensed insurance professional and, where appropriate, a qualified tax advisor before purchasing any annuity product.