Best 5 Year Annuity Rate

The best 5-year annuity rate holds a position that no other MYGA term holds in today’s market: it is the rate peak of the entire MYGA yield curve. Today’s best 5-year declared rate of 6.35% from Mountain Life Insurance Company’s Alpine Horizon product exceeds every shorter-term MYGA (1-year at 4.15%, 2-year at 5.25%, 3-year at 6.00%, 4-year at 6.05%) and every longer-term MYGA currently available — the 6-year rate is 6.00%, the 7-year is 6.10%, the 8-year is 6.00%, and the 10-year is 6.25%. In a market where more commitment typically means more yield, the 5-year MYGA defies that expectation by leading every other term length in declared rate. This reflects the structural alignment between 5-year MYGA products and the intermediate investment-grade bond maturities that insurance carriers use to back their general account portfolios. Carriers can generate peak investment yields on 5-year fixed income investments, and those peak general account yields translate into peak declared rates for 5-year MYGA buyers. The result is that a buyer who selects a 5-year MYGA today locks in not just a strong rate, but demonstrably the strongest available guaranteed fixed rate in the entire MYGA marketplace — regardless of whether they commit 1-year shorter or 1-to-5-years longer. For the complete MYGA rate landscape across all terms, our highest guaranteed annuity rates page and current fixed annuity rates resource provide the full market context.

The 5-year MYGA is also, by a significant margin, the most popular MYGA term in the market — a status it has held across different rate environments because 60 months represents the natural intersection between meaningful rate improvement over short-term alternatives and a commitment period that most conservative savers can plan around comfortably. A retiree who is 65 when they purchase a 5-year MYGA has funds available at 70 — still within the prime years of retirement income planning — making the commitment both manageable in duration and aligned with common retirement financial planning decision points. A pre-retiree who is 60 when they purchase has funds available at 65, precisely aligned with when retirement income needs typically crystallize. Today’s 5-year table also reveals an important buyer choice built directly into the carrier lineup: the same two carriers — Mountain Life and Wichita National — appear twice, once at their maximum declared rate with limited or no penalty-free access, and again at a slightly lower rate (6.10%) with 10% annual penalty-free withdrawal. This means buyers can see precisely what access costs in today’s market: dropping from 6.35% to 6.10% buys 10% annual penalty-free withdrawal with Mountain Life, and dropping from 6.25% to 6.10% buys the same provision with Wichita National. This transparent rate-vs.-access comparison is rare in the MYGA marketplace and makes the 5-year tier unusually decision-friendly for buyers who need to evaluate both dimensions simultaneously. For the full surrender charge mechanics, our resource on annuity surrender charges explained provides the complete pre-commitment mechanics.

The 5-year MYGA’s rate peak position creates a specific planning opportunity for buyers who can genuinely commit to 60 months: locking today’s 6.35% declared rate for the full 5-year period provides five consecutive years of guaranteed above-market conservative fixed income — at a rate that exceeds what bonds, CDs, savings accounts, or shorter-term MYGAs currently offer, and that cannot be reduced during the term regardless of what interest rates do over the next 60 months. If rates decline in the next year or two, the 5-year buyer is protected through 2031 at a rate that may prove difficult to replicate at renewal. If rates rise further, the 5-year term matures in time for the buyer to reassess and reenter the market at whatever new levels prevail. The rate protection value of a 5-year lock in a volatile rate environment is arguably the strongest at this term because the 5-year rate is at the ceiling of what the MYGA market currently offers. For buyers who have determined that a MYGA structure is appropriate for their conservative savings goals, our resource on whether annuities are worth it and the foundational annuities overview provide the value proposition framework, while our resource on tax-deferred annuity strategies covers how five years of compounding deferral amplifies the rate advantage beyond its stated value.

What Is a 5-Year MYGA and How Does It Work?

A 5-year Multi-Year Guaranteed Annuity deposits a lump sum premium with a licensed insurance carrier in exchange for a contractually declared interest rate guaranteed for exactly 60 months. The declared rate is set at issuance and cannot be reduced during the term — regardless of market conditions, interest rate movements, or internal carrier decisions. Principal is fully protected: the accumulated value cannot decline due to any market loss during the 5-year period. Interest compounds annually on the full accumulation balance, building guaranteed growth year over year. At the end of month 60, a maturity window opens — typically 30 days — during which the buyer can withdraw the full accumulated value penalty-free, renew into a new contract at then-current declared rates, or convert to a different annuity structure. If no action is taken during the maturity window, most contracts auto-renew at the carrier’s then-current 5-year declared rate. A $250,000 deposit at 6.35% for 5 years accumulates to approximately $341,500 at maturity — $91,500 in guaranteed, tax-deferred growth with zero market exposure throughout the term.

💰 Best 5-Year Annuity Rates (as of July 2026)

The table below shows today’s top 5-year MYGA options, including both maximum-rate products and 10% penalty-free withdrawal versions of the same carriers — giving buyers a clear, side-by-side view of exactly what annual liquidity costs in today’s market. Mountain Life’s Alpine Horizon at 6.35% leads the tier with 5% penalty-free from year two. The same carrier’s Alpine Horizon with 10% Free Withdrawal version offers full 10% annual access at 6.10% — a 0.25% rate cost for meaningful liquidity. Wichita National offers the same trade-off. Confirm live quotes for your specific state, age, and deposit amount before purchasing.

Rates are subject to change and may vary by state, age, and deposit size. The 6.10% versions of Mountain Life and Wichita National are the same carriers’ products with 10% annual penalty-free withdrawal built in — offered at a lower declared rate in exchange for the liquidity provision. A-rated 5-year MYGA alternatives are available at modestly lower declared rates. Guarantees backed by the carrier’s claims-paying ability and state guaranty associations within applicable limits.

Why the 5-Year Term Is the Rate Peak of Today’s MYGA Yield Curve

The 5-year MYGA’s position as the current MYGA rate peak reflects a structural alignment between 5-year insurance general account investing and the intermediate investment-grade bond market. Insurance carriers that issue MYGAs invest policyholder premiums primarily in investment-grade corporate bonds, agency securities, and structured fixed income instruments. The 5-year maturity zone currently offers the most attractive yields on a risk-adjusted basis relative to shorter and longer durations, because the yield curve’s current shape rewards 5-year commitments more efficiently than either very short-term or very long-term bond investments. When carriers can achieve better portfolio yields at 5-year bond durations, they translate those higher investment yields into higher declared rates for 5-year MYGA buyers — creating the current situation where 6.35% is available at 5 years versus 6.00% at both 3-year and 6-year terms. For buyers, this means the 5-year MYGA is not just the most committed MYGA option within a manageable time horizon — it is genuinely the highest-returning guaranteed fixed annuity option across the full term spectrum. Extending to 7-year (6.10%), 8-year (6.00%), or 10-year (6.25%) does not produce a better rate than the 5-year. This fact — that the 5-year is the rate peak — is the single most important structural fact about today’s MYGA market and the primary reason the 5-year term has earned its status as the most widely purchased MYGA commitment length.

The Rate-vs.-Access Trade-Off — What 10% Liquidity Actually Costs at 5 Years

Today’s 5-year rate table makes a rare and valuable comparison available: the same carriers offer both maximum-rate versions and 10%-penalty-free versions of their products side by side, making the cost of annual liquidity explicit and precise. Mountain Life’s Alpine Horizon at 6.35% provides 5% penalty-free from year two and nothing in year one. The same carrier’s Alpine Horizon with 10% Free Withdrawal at 6.10% provides full 10% annual access. The rate cost of upgrading from 5% to 10% access — and gaining year-one access — is 0.25 percentage points per year. On $250,000, that 0.25% gap means approximately $625 per year in foregone guaranteed interest, or approximately $3,125 over the full 5-year term. The question every buyer must answer honestly is whether $3,125 per $250,000 is worth the difference between 5% access (from year two only) and full 10% annual access from year one. For buyers who genuinely will not need more than 5% annual access after the first year, the 6.35% Alpine Horizon is the better economic outcome. For buyers who need 10% access — for income supplementation, RMD accommodation, or financial flexibility — the 6.10% version delivers that access at a precisely quantifiable cost. Wichita National’s Security MYGA with 10% Free Withdrawal at 6.10% offers the same provision as a B+ alternative to Mountain Life’s B- product. Both 6.10% options provide 10% from year two (with no access in year one), while Mountain Life’s 10% version additionally offers access in year one. This means Mountain Life’s 10% version is strictly more flexible than Wichita National’s 10% version — 10% in all years versus 10% only from year two — at the same declared rate of 6.10%, making the Mountain Life 10% option the dominant choice among the two 6.10% alternatives for buyers who need maximum liquidity throughout the term. Understanding what a market value adjustment is and how it interacts with withdrawals above the penalty-free amount is equally important for any 5-year MYGA selection, particularly for the products with zero or limited free access where any excess withdrawal triggers both surrender charges and a potential MVA adjustment.

The 5-Year vs. 4-Year — The Strongest Adjacent-Term Rate Case in the Spectrum

The comparison between today’s best 4-year MYGA rate (6.05%) and the best 5-year rate (6.35%) represents the strongest adjacent-term rate case in the entire MYGA yield curve: 0.30 percentage points per year for 12 additional months of commitment. On $100,000, that 0.30% generates approximately $300 more per year in guaranteed interest. Over the full 5-year term, a 5-year MYGA at 6.35% produces approximately $36,900 in guaranteed interest on $100,000, compared to the 4-year’s approximately $26,900. The year-for-year rate improvement of 0.30% from 4-year to 5-year is the most compelling adjacent-term step-up in today’s market. Buyers with genuine 60-month holding capacity should seriously evaluate whether this improvement justifies stepping up to the 5-year. For buyers whose planning horizon is bounded at 48 months, the 4-year at 6.05% is the correct structural match. For buyers with genuine 60-month holding capacity, the 5-year’s rate advantage is the most compelling step-up in the MYGA rate ladder and is supported by the fact that the 5-year is simultaneously the rate peak — not just better than the 4-year, but better than every longer term as well.

The Counterintuitive Comparison — Why Longer Terms Don’t Yield More Than 5 Years

The most important counterintuitive fact about today’s MYGA rate environment is that extending beyond 5 years does not improve the declared rate — and in some cases reduces it. The 6-year MYGA rate is 6.00% — 0.35% below the 5-year peak. The 7-year MYGA rate is 6.10% — 0.25% below. The 8-year MYGA rate is 6.00% — 0.35% below. Even the 10-year MYGA rate at 6.25% trails the 5-year peak by 0.10%. A buyer who commits to a 7-year MYGA at 6.10% is accepting 2 additional years of surrender commitment compared to the 5-year at 6.35%, while earning 0.25% less per year. Over the 5-year overlap period, the 5-year buyer earns approximately $36,900 on $100,000 while the 7-year buyer earns approximately $34,500 — $2,400 less, with two more years of commitment still ahead. This rate curve inversion makes the 5-year MYGA the objectively optimal term selection for buyers evaluating on rate alone: the highest yield at what is, among higher-rate MYGAs, a relatively shorter commitment. For buyers who want comprehensive comparison data across the full term spectrum, our resources on 6-year, 7-year, 8-year, 9-year, and 10-year provide the complete rate context.

60-Month Tax Deferral — The Full Compounding Advantage at the 5-Year Term

The tax-deferral advantage of a MYGA compounds more meaningfully at the 5-year term than at any shorter-term alternative. Five consecutive years of credited interest accumulating without annual income tax creates a compounding chain that significantly separates the 5-year MYGA’s effective after-tax yield from a CD taxed annually at the same stated rate. For a buyer in the 24% federal tax bracket with $250,000 in a 5-year MYGA at 6.25% (Sentinel Security or Wichita National), the annual interest credited is approximately $15,625 per year — accumulating tax-deferred without generating any annual 1099. By contrast, a CD at 5.00% on $250,000 generates $12,500 in taxable interest in year one — with the buyer paying approximately $3,000 in annual income tax — reducing the effective after-tax compounding base for every subsequent year. Over five years, the cumulative compounding advantage from the MYGA’s tax deferral adds meaningfully to the total accumulation compared to a CD taxed annually at the same marginal rate. Our resource on fixed annuities vs. CDs provides the full after-tax mechanics at different tax brackets, and the non-qualified annuity guide covers how the deferred interest is eventually taxed at distribution for after-tax funded contracts.

Why the 5-Year Term Is So Popular Among Conservative Investors

The 5-year MYGA’s popularity reflects four converging factors that no other term combines as effectively. First, it is the MYGA rate peak — buyers who want the highest available guaranteed fixed rate get it at 5 years. Second, 60 months aligns naturally with common retirement planning decision horizons. Third, the 5-year maturity is short enough that most buyers can genuinely plan around it without the open-ended uncertainty that 8-to-10-year commitments create. Fourth, the 5-year MYGA’s current rates of 6.10%–6.35% are competitive enough with moderate-risk alternatives that the market needs to outperform by a meaningful margin to justify the additional volatility for the conservative portion of any retirement portfolio. For buyers who want the complete framework for evaluating whether the 5-year MYGA’s combination of rate peak and 60-month commitment serves their specific planning needs, our highest guaranteed annuity rates resource provides the rate comparison and our fixed annuity ladder strategy guide provides the portfolio integration framework. For buyers transitioning from existing annuity contracts at lower rates, our annuity rescue plan covers the 1035 exchange process for repositioning into today’s 5-year rate peak. For those who eventually want to convert accumulated value to guaranteed lifetime income at maturity, our resource on best fixed indexed annuities with lifetime income riders covers the income structures most commonly evaluated at 5-year MYGA maturity.

Comparing Fixed vs. Indexed and Bonus Annuities at the 5-Year Term

While a 5-year MYGA at 6.10%–6.35% offers predictable fixed interest, some investors evaluate indexed or bonus annuities for additional growth potential or premium credits. Indexed annuities link interest to external market indices without direct downside exposure, while bonus annuities may offer upfront credits in exchange for longer surrender periods. At the 5-year commitment level, the MYGA’s rate peak position makes the fixed alternative unusually competitive against indexed structures: to outperform the 5-year MYGA’s guaranteed 6.35% over five years, an FIA must average more than 6.35% annual crediting — which requires consistently strong index performance against caps and participation rates throughout the term. For investors who want to evaluate all structures side by side, our indexed and bonus annuity rates page provides the complete comparison landscape. For buyers specifically evaluating whether to lock the 5-year fixed rate or pursue a bonus annuity structure with higher potential income at a longer surrender period, our resource on what to do with an IRA after retiring provides the decision framework for qualified account holders making this evaluation.

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