Looking for the best 3-year annuity rate? You’re in the right place. Fixed annuities with a 3-year term (MYGAs) offer an attractive blend of yield and control—often higher than 1–2 year contracts while keeping your commitment comfortably short. At Diversified Insurance Brokers, we compare products from 75+ top-rated carriers to help you lock in competitive guarantees without sales pressure or hidden fees.

A 3-year fixed annuity guarantees a set interest rate for 36 months, provides principal protection, and delivers tax-deferred growth. At maturity, you can renew, withdraw, or reposition funds—giving you optionality as markets and rates evolve.

What Is a 3-Year Fixed Annuity?

A 3-year MYGA is a contract with an insurance company that credits a guaranteed fixed rate for three consecutive contract years. Interest compounds tax-deferred until you take distributions. At the end of the term, most contracts let you renew (at then-current rates), transfer to a new annuity, or take a full withdrawal without surrender penalties.

Who Should Consider a 3-Year Annuity?

The 3-year term hits a sweet spot for savers who want more yield than ultra-short options while preserving near-term liquidity. You might prefer a 3-year MYGA if you are:

• Rolling funds from maturing CDs and seeking higher guaranteed returns without a long lock-up.
• Building a ladder (1–2–3–5–7 years) to keep annual liquidity and reinvestment opportunities.
• Parking cash for a defined period before a known expense (home project, car, Roth conversion taxes).
• Conservative by nature—prioritizing principal protection and predictable growth over market risk.

Safety matters: We recommend carriers rated A- or better by independent rating agencies. Fixed annuities are backed by the insurer’s general account and supported by state guaranty associations up to statutory limits.

Benefits of a 3-Year MYGA

• Higher Potential Yield vs. 1–2 Years: Insurers typically reward slightly longer commitments with better rates.
• Tax-Deferred Growth: Your interest compounds without annual taxation until withdrawal.
• Principal Protection: No market downside—your contract value grows at the guaranteed rate.
• Liquidity Features: Many contracts allow up to 10% penalty-free access each year (verify your policy).
• Flexible Maturity Options: Renew, reallocate to a different term, or take a full distribution.

Why 3-Year Rates Change

Carrier rates reflect bond yields, portfolio positioning, and competitive dynamics. Because those inputs move, the “best 3-year annuity rate” can change quickly. Our team monitors 75+ carriers and updates comparisons so you can capture favorable windows—small differences (0.15%–0.25%) can meaningfully boost results over three years.

How to Compare 3-Year Annuity Options

• Financial Strength: Favor A- or better ratings for long-term reliability.
• Liquidity Provisions: Confirm penalty-free amounts (often 10%) and interest-only access where available.
• Renewal Rules: Some auto-renew; others require action—know your election window.
• Minimums & Issue Ages: Typical minimums $10,000–$25,000; age limits vary by carrier.
• MVA (Market Value Adjustment): Understand how an MVA can affect early withdrawals during the term. See our Market Value Adjustment Explained guide.

Laddering with a 3-Year “Middle Rung”

Laddering spreads purchases across different terms so something matures each year. A 3-year rung can anchor the middle of your ladder—balancing yield and timing. When a rung matures, you can roll into a new 3-year MYGA (if rates are attractive), extend to a 5-year, or hold cash for upcoming needs.

3-Year MYGAs vs. CDs and Money Markets

• Tax Treatment: Annuitized growth is tax-deferred; CD interest is taxed annually.
• Yield: Insurers can often credit higher fixed rates than banks due to different investment models.
• Flexibility at Maturity: Renew, withdraw, or roll to an income or indexed annuity based on goals.
• Risk Profile: No market volatility—your rate is contractual and guaranteed.

For retirement planning, some clients pair a 3-year MYGA with longer-term options—using the 3-year for near-term liquidity while positioning other funds for potentially higher multi-year yields.

Next Step: Compare Current Fixed Annuity Rates

To see live 3-year MYGA offerings across carriers, visit our Fixed Annuity Rate Page. Rate windows can be brief—review options now and decide with confidence.

Related Topics to Explore

• Best Short-Term MYGA Annuities
• Tax-Deferred Annuity Strategies
• Annuity Surrender Charges Explained
• Guaranteed Lifetime Withdrawal Benefits Explained
• Annuity Rollover Options for Teachers