Looking for the best 4-year annuity rate? You’re in the right place. A 4-year fixed annuity (MYGA) can deliver a stronger guaranteed yield than ultra-short terms while keeping your commitment comfortably under five years. 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 4-year fixed annuity guarantees a set interest rate for 48 months, provides principal protection, and credits tax-deferred growth. At maturity, you can renew, roll to a different term, or withdraw funds—so you maintain flexibility as rates and goals evolve.

What Is a 4-Year Fixed Annuity?

A 4-year MYGA is a contract with an insurance company that credits a guaranteed fixed rate for four consecutive contract years. Interest compounds tax-deferred until you take distributions. At maturity, most contracts let you renew at current rates, transfer to another annuity, or take a full penalty-free withdrawal during the window provided in your contract.

Who Should Consider a 4-Year Annuity?

The 4-year term often appeals to savers who want a higher guaranteed rate than 1–3 year terms with less lock-up than 5–10 years. Consider a 4-year MYGA if you are:

• Laddering across 2–3–4–5 years to keep annual liquidity and reinvestment opportunities.
• Rolling over maturing CDs and seeking a stronger multi-year guarantee.
• Targeting a known time horizon (e.g., retirement date, home project, tuition window).
• 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 supported by the insurer’s general account and state guaranty associations up to statutory limits.

Benefits of a 4-Year MYGA

• Higher Potential Yield vs. 1–3 Years: Longer commitment is typically rewarded with better guaranteed rates.
• Tax-Deferred Growth: Interest compounds without annual taxation until withdrawal.
• Principal Protection: Contract value grows at the guaranteed rate—no market downside.
• Built-In Liquidity: Many contracts allow up to 10% penalty-free each year (verify your policy).
• Flexible Maturity Options: Renew, change terms, or take a full distribution at the end of year four.

Why 4-Year Rates Move

Carrier rates track bond yields, portfolio positioning, and competitive dynamics. Because those inputs change, the “best 4-year annuity rate” can shift quickly. Our team monitors 75+ carriers so you can capture favorable windows—small differences (0.15%–0.25%) can add meaningful value over four years.

How to Compare 4-Year Annuity Options

• Financial Strength: Favor A- or better ratings for long-term reliability.
• Liquidity Provisions: Confirm penalty-free amounts (often 10%) and any interest-only access.
• Renewal Rules: Know your election window; some contracts auto-renew if no action is taken.
• 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.

Using a 4-Year “Anchor” in a Ladder

Laddering spreads purchases across terms so something matures each year. A 4-year rung can anchor the middle-to-upper part of your ladder—balancing yield with still-reasonable access. On maturity, roll to a new 4-year if rates are attractive, extend to 5 years, or shorten if you’ll need cash sooner.

4-Year MYGAs vs. CDs & Money Markets

• Tax Treatment: Annuity 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 pivot to an income or indexed annuity based on goals.
• Risk Profile: No market volatility—your rate is contractual and guaranteed for four years.

Many retirement savers pair a 4-year MYGA with shorter and longer terms—using the 4-year for dependable mid-horizon growth while keeping other funds liquid or positioned for higher multi-year yields.

Next Step: Compare Current Fixed Annuity Rates

See live 4-year MYGA offerings and carrier specifics on 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