Best 4 Year Annuity Rate

The best 4-year annuity rate occupies a structurally unusual position in the MYGA marketplace — one that surprises many buyers who expect the rate-vs.-quality trade-off to worsen as commitment lengthens. At the 3-year tier, every carrier in the competitive rate band is B-range rated; no A-rated or A- rated carriers appear in the top rates. At the 4-year tier, four of the five carriers in today’s competitive table are A-rated or A- rated: Oceanview Life (A) at 5.20%, Clear Spring Life (A-) at 5.15%, Oxford Life Insurance Company (A) at 5.10%, and Pacific Guardian Life (A-) at 5.00%. This abundance of investment-grade carriers within a 0.20% rate band of each other is the defining characteristic of the 4-year tier and the primary reason it deserves serious evaluation from buyers who prioritize financial strength alongside competitive yield. The only B-range carrier in today’s 4-year table — Mountain Life (B-) at 6.05% — leads the tier by a wider margin than B-range carriers typically hold at 2-year or 3-year terms: approximately 0.85% above the top A-rated option. That 0.85% annual rate premium represents the explicit cost of A-rated carrier quality at the 4-year term, a substantially larger premium than the 0.30% spread at the 2-year tier. Buyers evaluating the 4-year term are therefore navigating a genuinely bifurcated market: a B- carrier offering the highest yield at 6.05%, and a cluster of A-rated and A- rated carriers offering 5.00%–5.20% with better financial strength profiles and — notably — more generous penalty-free withdrawal terms in most cases. The highest guaranteed annuity rates page and current fixed annuity rates resource provide the full market context across all terms.

The second defining characteristic of the 4-year tier is the flat yield curve between 3 years and 4 years in today’s market. The best 3-year MYGA rate is 6.00%; the best 4-year MYGA rate is 6.05% — a 0.05 percentage point improvement for 12 additional months of surrender commitment. On $100,000, that 0.05% generates approximately $50 more in guaranteed interest per year, or approximately $200 more over the full 4-year period compared to the 3-year rate. This is the smallest rate improvement per year of any adjacent-term comparison in the MYGA spectrum — making the 4-year vs. 3-year decision almost exclusively a planning horizon question rather than a rate optimization question. If the buyer’s actual holding horizon is 48 months, the 4-year MYGA is the correct structural choice at essentially the same rate. If the buyer’s horizon is 36 months, the 3-year provides identical yield with one fewer year of commitment. The comparison above the 4-year is more substantive: today’s best 5-year annuity rate is 6.35% — a 0.30 percentage point improvement over the 4-year leader. On $100,000, that 0.30% generates approximately $300 more per year, or approximately $1,500 more over the first 4 years of the 5-year contract (not counting the 5th year). For buyers whose horizon genuinely extends to 60 months, the 5-year offers a meaningfully stronger rate case. For buyers bounded at 48 months, the 4-year at today’s rates is the terminal point of the rate optimization journey for their specific horizon.

The 4-year MYGA’s A-rated carrier richness has a practical planning implication beyond the carrier quality preference. Pacific Guardian Life (A-) at 5.00% is the only carrier in today’s 4-year table that offers 10% annual penalty-free withdrawal from inception — available in all contract years, not just from year two. Oxford Life (A) at 5.10% offers interest-only withdrawal in year one, then 10% from year two. Oceanview (A) at 5.20% and Clear Spring Life (A-) at 5.15% offer 10% from year two with no access in year one. Mountain Life (B-) at 6.05% offers 5% / 0% — limited access with restrictions. For buyers who need systematic annual access to a portion of their conservative allocation during the 4-year term — retired income seekers, IRA RMD accommodators, disciplined interest harvesters — the A-rated carrier field provides meaningful flexibility that the B-rated rate leader does not. A buyer who needs 10% annual access from a $300,000 4-year MYGA can access $30,000 per year through Oceanview, Clear Spring, Oxford Life, or Pacific Guardian — but cannot access that amount through Mountain Life. This liquidity comparison, combined with the carrier quality comparison, frequently makes the 4-year A-rated tier the better structural choice even at a meaningful rate sacrifice for buyers with systematic income needs. Our resource on the annuities overview, whether annuities are worth it, and tax-deferred annuity strategies provide the foundational evaluation framework for buyers beginning this analysis.

What Is a 4-Year Fixed Annuity — And Why the 48-Month Term Has Specific Planning Value

A 4-year fixed annuity (MYGA) declares a guaranteed interest rate at issuance and applies it to the full accumulation value for exactly 48 months. Principal is protected from market loss — the balance cannot decline due to any market condition during the 4-year term. Interest compounds tax-deferred inside the contract without generating an annual 1099 for non-qualified (after-tax) money. At the end of month 48, a penalty-free maturity window opens — typically 30 days — during which the buyer can withdraw the full accumulated value, renew into a new contract at then-current rates, or reposition into a different annuity structure. The 4-year MYGA’s planning value comes from two specific attributes not found in adjacent terms: its combination of nearly identical rates to the 3-year (making it a 48-month commitment at minimal additional yield cost), and its unusually competitive A-rated carrier field (making it the best term for buyers who require investment-grade financial strength at competitive yields). Buyers who value a 48-month holding horizon — for specific income planning, retirement date alignment, or ladder architecture — find the 4-year term provides the most A-rated carrier options of any medium-term MYGA tier in today’s market.

💰 Best 4-Year Annuity Rates (as of June 2026)

The table below shows today’s five best 4-year MYGA options with AM Best ratings and penalty-free withdrawal provisions. Unique to this term: four of five carriers are A-rated or A- rated, with competitive rates clustering in a tight 0.20% band (5.00%–5.20%). Mountain Life (B-) leads at 6.05% but with the most restrictive liquidity terms. Pacific Guardian Life (A-) is the only carrier offering full 10% penalty-free access from inception across all contract years — a significant advantage for buyers with systematic income needs. All rates are for June 2026 new contracts; confirm live quotes for your state and premium.

Rates subject to change and may vary by state, age, and deposit size. The notation “X% / Y%” refers to the penalty-free withdrawal percentage (year 2+ / year 1). “Interest Only” means only the interest portion—not principal—may be withdrawn penalty-free in year one. Guarantees backed by the carrier’s claims-paying ability.

Why the 4-Year Tier Has More A-Rated Options Than the 3-Year

The pattern — where more A-rated carriers compete at 4-year terms than at 3-year terms — reflects a specific dynamic in how insurance carriers price MYGA rates at different durations. At the 3-year term, B-range carriers dominate the competitive rate landscape because the 36-month investment horizon limits the premium they can earn on higher-yield investment-grade bonds relative to their operating costs and reserve requirements. A-rated carriers, constrained to investment portfolios concentrated in higher-grade credit, cannot generate enough additional yield at 3 years to price competitively against B-rated carriers. At 4 years, A-rated carriers gain one additional year of investment runway — 48 months instead of 36 — which allows their investment portfolios to generate meaningfully more income, closing the gap against B-rated carriers at the headline rate level. This is why Oceanview (A), Oxford Life (A), Clear Spring Life (A-), and Pacific Guardian Life (A-) all appear in the 4-year table at rates (5.00%–5.20%) that are genuinely competitive for A-rated fixed annuities, while at 3-year terms those same carriers would be priced further behind the B-rated leaders. The practical benefit for 4-year buyers is significant: buyers who require A-rated carrier quality can find genuinely competitive rates at this term (5.00%–5.20%) rather than accepting a large quality-vs.-rate sacrifice as they would at 3-year terms where A-rated alternatives fall further behind. Our highest guaranteed annuity rates resource provides the full carrier spectrum context across all term lengths.

The Penalty-Free Withdrawal Comparison — Four Different Provision Structures at 4-Year

The four penalty-free withdrawal structures represented in today’s 4-year table illustrate why this dimension of the contract is as important as the headline rate. Mountain Life (B-, 6.05%) offers 5% in some years and 0% in others — the most restrictive allowance in the table, limiting penalty-free access to $5,000 per year on $100,000 in the applicable year(s) and zero in restricted year(s). Oceanview (A, 5.20%) and Clear Spring Life (A-, 5.15%) both follow the same pattern: 10% from year two, with no penalty-free access in year one. For a $300,000 deposit, this means $30,000 per year is accessible penalty-free from year two forward, but nothing is accessible in the first 12 months without triggering surrender charges. Oxford Life (A, 5.10%) offers a different structure: interest-only in year one, then 10% from year two. For a $300,000 deposit at 5.10%, the year-one interest-only allowance is approximately $15,300 — meaningfully more than zero, but less than the full 10% that other carriers provide from year two. Pacific Guardian Life (A-, 5.00%) stands apart with the most generous provision in the table: 10% from inception — available in all contract years including year one. On a $300,000 deposit, this means up to $30,000 is accessible in year one, year two, year three, and year four without any surrender charge. For buyers who need reliable annual access throughout the 4-year commitment — retired income seekers who use systematic MYGA withdrawals to supplement Social Security, IRA holders with RMD obligations that may be accommodated by penalty-free access, or buyers who want optionality during the term — Pacific Guardian Life’s from-inception 10% provision is the only carrier in today’s 4-year table that provides this flexibility. Our resource on annuity surrender charges explained covers the mechanics of what happens when withdrawals exceed the penalty-free allowance, and our resource on what a market value adjustment is explains the additional adjustment that some contracts apply on excess withdrawals during the surrender period.

The 4-Year vs. 3-Year — A Flat Yield Curve Demands a Planning Decision

Today’s 0.05 percentage point rate difference between the best 3-year MYGA (6.00%) and the best 4-year MYGA (6.05%) is the flattest adjacent-term comparison in the MYGA yield curve. On $100,000, this 0.05% generates approximately $50 more per year — or approximately $200 more over the full 4-year term compared to rolling a 3-year MYGA and then a 1-year extension at today’s rates. The rate case for committing the additional 12 months to the 4-year is effectively negligible. The correct decision between 3-year and 4-year at today’s market rates is therefore almost entirely determined by the buyer’s actual planning horizon: buyers with a genuine 48-month holding horizon should choose the 4-year; buyers whose realistic horizon is 36 months should choose the 3-year at essentially the same rate. There is no rate optimization logic that favors the 4-year for buyers whose planning reality is a 36-month horizon. Conversely, buyers who know they will not need the full principal for 48 months should recognize that a 4-year MYGA at 6.05% effectively gives them the same rate as the 3-year at 6.00% with 12 additional months of rate protection — if rates decline over the next three years, the 4-year buyer is protected through month 48 while the 3-year buyer faces reinvestment at whatever rate prevails in mid-2029. This rate-protection value may be the strongest argument for the 4-year over the 3-year in today’s flat rate curve environment.

The 4-Year vs. 5-Year — Where the Rate Case Strengthens

The comparison between the 4-year (6.05%) and the 5-year annuity rate (6.35%) is more substantive than the 3-to-4-year comparison. The 5-year leads by 0.30 percentage points per year — generating approximately $300 more per year per $100,000, or approximately $1,500 more over the overlapping 4-year holding period (again, not counting the 5-year’s additional fifth year). This 0.30% improvement per year is six times larger than the 3-to-4-year improvement. For buyers whose horizon extends to 60 months, the 5-year MYGA provides a genuinely meaningful additional yield in exchange for 12 more months of surrender commitment. The 5-year also crosses the 6.30%+ range where the rate case begins to compete effectively with historical equity market alternatives on a risk-adjusted basis — relevant for buyers who are moving money from moderate-risk portfolios into conservative guaranteed accumulation. For buyers whose realistic horizon is firmly bounded at 48 months, the 4-year remains the correct choice at 6.05%. The 5-year’s 0.30% yield improvement is not worth accepting a 60-month commitment when the buyer’s actual planning horizon is 48 months — the liquidity friction of the additional 12 months exceeds the rate benefit for horizon-constrained buyers. Our resources on the best 6-year annuity rate, the best 7-year annuity rate, and the best 10-year annuity rate provide the full rate spectrum for buyers who are evaluating longer terms with wider rate advantages than the 4-year-to-5-year comparison.

Tax Deferral Advantage Over 48 Months

The tax-deferral advantage of a 4-year MYGA compounds more meaningfully than at 1-year or 2-year terms because four full years of credited interest accumulate without a single annual tax event for non-qualified money. A buyer in the 24% federal tax bracket with $250,000 in a 4-year MYGA at 5.15% (Clear Spring Life, A-) earns approximately $12,875 per year in interest — which accumulates tax-deferred inside the contract without triggering a 1099 annually. Over four years, the cumulative deferred tax from avoiding annual 1099 taxation represents approximately $12,360 in after-tax accumulation advantage compared to a comparable CD taxed annually at 24% — money that stays inside the contract compounding at the declared rate rather than being paid in annual taxes. This compounding deferral effect is the reason that the MYGA’s effective after-tax yield exceeds its stated declared rate for buyers in meaningful tax brackets — and why the 4-year term, with four consecutive years of deferral, is substantially more impactful for non-qualified money than a series of four sequential 1-year MYGAs (which generate a taxable event at each annual renewal if the buyer withdraws interest). Our resources on fixed annuities vs. CDs, tax-deferred annuity strategies, and non-qualified annuities provide the full tax mechanics for buyers evaluating the 4-year’s after-tax yield advantage across different bracket scenarios.

Using a 4-Year Annuity in a Ladder Strategy

The 4-year MYGA functions as the medium-term anchor rung in the most common fixed annuity ladder configurations — providing a maturity window at the 4-year mark in a staggered structure that creates decision points across the 1-to-7-year planning horizon. A practical ladder for a conservative buyer with $400,000 might allocate $100,000 each to a 2-year MYGA at 5.25%, a 3-year MYGA at 6.00%, a 4-year MYGA at 6.05%, and a 5-year MYGA at 6.35%. The maturity windows fall in 2028, 2029, 2030, and 2031 respectively — creating four independent evaluation points at which the buyer can renew, reposition, or convert at then-current rates. The 4-year rung’s specific contribution is the third maturity window: a decision point in 2030 at which the buyer evaluates the rate environment and decides whether to continue the ladder structure or shift to a different strategy. In a declining rate environment, the 4-year rung provides three additional years of rate protection beyond the 2-year’s maturity window while remaining shorter-commitment than the 6-year or longer terms. The 4-year’s placement between the 3-year and 5-year rungs also provides the smallest rate gap per rung in the ladder — reinforcing that the 4-year’s value in the structure is primarily its timing contribution rather than a rate step-up. For buyers evaluating the full short-term MYGA spectrum across 1-to-4-year terms, our resource on best short-term MYGA annuities covers that landscape in detail.

Who Specifically Benefits From a 4-Year MYGA

The 4-year MYGA buyer has a 48-month planning horizon and one or more of three additional attributes that make the 4-year specifically appropriate. Buyers who prioritize A-rated carrier financial strength at competitive yields find the 4-year tier uniquely attractive because it is the term where A-rated and A- rated carriers (Oceanview, Clear Spring Life, Oxford Life, Pacific Guardian) offer their most competitive fixed rates — rates that are substantially better than what A-rated carriers offer at 1-year or 2-year terms and comparable to what they offer at 5-to-7-year terms. Buyers who need systematic annual access to a portion of their conservative allocation find the 4-year tier’s A-rated options (with 10% penalty-free from year two, or Pacific Guardian’s 10% from inception) far more accommodating than the 3-year tier’s restricted options. Buyers using a 2-3-4-5 or 2-4-6 ladder configuration who need the 4-year as a specific maturity-window rung choose the 4-year for its ladder architecture role rather than its rate leadership. Buyers who recently completed a retirement account rollover — from a 401(k), IRA, or other qualified plan — and want a 48-month conservative holding period while finalizing a longer-term income strategy benefit from the 4-year’s combination of competitive A-rated yields and manageable commitment horizon. Our resources on what to do with an IRA after retiring and the annuity rescue plan provide context for buyers evaluating the 4-year as part of a broader post-retirement repositioning decision. For buyers who eventually plan to transition to guaranteed income after the 4-year term, our resource on best fixed indexed annuities with lifetime income riders covers the income-generating structures most commonly evaluated at 4-year MYGA maturity.

Understanding Market Value Adjustments at the 4-Year Term

Understanding what a market value adjustment is and how it applies to 4-year contracts is important before committing to any carrier in this tier. An MVA adjusts the surrender value received on excess withdrawals (above penalty-free allowances) during the 4-year term based on interest rate movements since contract issuance. If market rates have risen, the MVA adjustment is negative — reducing the value received on early exits. If rates have declined, the adjustment is positive. MVAs apply only to early exits above the penalty-free allowance; buyers who hold through the full 48-month term and access funds only during the penalty-free maturity window are entirely unaffected. For buyers with any uncertainty about holding through month 48 without exceeding penalty-free access amounts, confirming whether any specific 4-year MYGA includes an MVA and how it would affect realistic withdrawal scenarios is a required pre-purchase step. The carriers in today’s 4-year table have different MVA provisions — some include MVAs, some do not — and this distinction should be confirmed for the specific product before purchase. Our resource on annuity surrender charges explained covers the full interaction between surrender charges and MVA provisions for medium-term MYGA contracts.

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