Searching for the best 4-year annuity rate? A 4-year fixed annuity—most commonly structured as a Multi-Year Guaranteed Annuity (MYGA)—offers a powerful combination of competitive yield, principal protection, and mid-range flexibility. It locks in a guaranteed interest rate for four full years, shields your money from market volatility, and provides a clearly defined maturity date so you can reassess your strategy with confidence. At Diversified Insurance Brokers, we compare more than 75 A-rated insurance carriers nationwide to help you identify strong 4-year annuity options with transparent terms and no sales pressure.

For savers who want meaningfully higher yields than a 1-year annuity, 2-year annuity, or even a 3-year annuity, but who are not ready to commit to longer surrender schedules such as a 7-year annuity or 10-year annuity, the 4-year term often represents an ideal middle ground. It typically offers a rate bump over shorter contracts while keeping your capital accessible in a reasonable timeframe.

In today’s shifting interest rate environment, that balance matters. Locking in a competitive 4-year rate can protect you if rates decline, while still allowing you to reposition in a relatively short window compared to longer-duration products. Whether you are rolling over a CD, reallocating conservative assets, or building a structured annuity ladder, the 4-year MYGA deserves serious consideration.

A 4-year fixed annuity is a contract with an insurance company that guarantees a declared interest rate for 48 months. Your principal does not fluctuate with the stock market, and your rate cannot decrease during the guarantee period. Interest compounds on a tax-deferred basis, meaning you do not owe annual taxes on gains unless you take withdrawals. At the end of the four-year term, you typically have a surrender-free window where you can withdraw funds, renew at a new rate, or transfer into another annuity strategy without penalty.

That clarity appeals to conservative investors. You know exactly what your rate is. You know how long it lasts. And you know that market downturns cannot erode your account value. For retirees and pre-retirees who prioritize capital preservation, that certainty is often more important than chasing unpredictable market returns.

One of the most compelling features of a 4-year MYGA is principal protection. Unlike bond funds, which fluctuate with interest rates, or dividend stocks, which can decline in value during market corrections, a fixed annuity does not lose value due to market performance. Your account grows at the declared rate and cannot move backward because of volatility. This makes 4-year annuities particularly attractive during periods of economic uncertainty or equity market instability.

Tax deferral further enhances the appeal. With a bank CD, interest is taxable annually—even if you do not withdraw it. With a non-qualified fixed annuity, earnings compound without current taxation. Over multiple years, this can significantly improve after-tax accumulation, especially for individuals in higher marginal tax brackets. If you want a broader overview of how these contracts work, visit our Annuities Overview Page for a complete breakdown of structures and options.

The 4-year term often appeals to investors building a ladder strategy. Laddering involves spreading capital across different maturity dates—such as 2-year, 4-year, and 6-year annuities—so a portion of funds becomes available at staggered intervals. This reduces reinvestment risk and creates predictable liquidity windows. A 4-year rung often serves as a stabilizing midpoint in that structure, offering stronger yield than ultra-short terms without the extended commitment of longer contracts.

In rising rate environments, some investors hesitate to lock funds for extended durations. The 4-year term can help mitigate that concern. It provides more yield than short-term parking vehicles while avoiding the longer surrender schedules of 8-year or 9-year annuities. If rates increase meaningfully during your contract, you still regain control within a reasonable time horizon.

Some 4-year annuities include a Market Value Adjustment (MVA) provision. An MVA can adjust surrender values—positively or negatively—if you withdraw funds before maturity and interest rates have shifted significantly. While MVAs are designed to protect the insurer’s long-term rate commitments, they can benefit or reduce surrender values depending on rate direction. Understanding these mechanics is important before purchasing. We strongly recommend reviewing contract details and comparing carriers carefully.

For investors who may eventually want lifetime income, a 4-year MYGA can function as a transitional accumulation vehicle. After the guarantee period, funds can be repositioned into products that offer income riders or indexed growth strategies. If you want to explore enhanced crediting methods or premium bonuses, compare options on our Current Indexed & Bonus Annuity Rates Page. Bonus annuities may provide upfront premium enhancements, while indexed annuities link interest potential to market indices without direct market risk.

It is also important to understand liquidity provisions. Most 4-year fixed annuities allow annual penalty-free withdrawals of 5% to 10% of the account value, though terms vary by carrier. Withdrawals beyond the free amount during the surrender period may incur charges. After the four-year term concludes, you typically enter a renewal window with full access to funds.

When comparing 4-year annuities to CDs or Treasuries, several distinctions stand out. CDs offer FDIC backing but generate taxable interest annually. Treasury securities are backed by the U.S. government but fluctuate in market value if sold before maturity. Fixed annuities are backed by the financial strength of the issuing insurer and provide tax deferral plus principal stability. For conservative allocations not needed immediately, this combination can be compelling.

If your long-term objective includes guaranteed retirement income, evaluating projected payout levels is essential. Rather than guessing, use the income calculator below to estimate potential lifetime income based on your age and premium amount.

Ultimately, selecting a 4-year annuity is not simply about chasing the highest rate. It is about aligning term length, liquidity needs, tax considerations, and long-term retirement goals. Some investors prefer the flexibility of shorter commitments like 3-year annuities, while others are comfortable extending to 5-year annuities for incremental yield. Evaluating multiple terms side-by-side helps you understand the trade-offs clearly.