What is a fixed annuity (MYGA) and how does it work?

A fixed annuity—often a Multi-Year Guaranteed Annuity (MYGA)—credits a guaranteed interest rate for a set term (e.g., 3, 5, or 7 years). Your principal is protected by the insurer and growth is tax-deferred until you take withdrawals.

Are fixed annuities safe for conservative investors?

Fixed annuities protect principal from market losses and are backed by the issuing insurer. Conservative investors often choose A-rated carriers and diversify terms. State guaranty protections apply where available and subject to limits.

How do I choose the best term length?

Match the guarantee period to your time horizon and liquidity needs. Many investors favor 3–5 years for flexibility, or build a ladder across multiple terms so a portion matures each year to capture future rate changes.

Can I access my money before the term ends?

Most fixed annuities allow an annual free-withdrawal amount (commonly up to 10%). Withdrawals above that during the surrender period may incur charges and, for non-qualified contracts, taxable interest.

What are my options when a MYGA matures?

At maturity you can renew to a new term, 1035 exchange to another annuity, annuitize for income, or withdraw funds. We compare offers before your window opens so you can choose the most competitive option.

How do fixed annuities compare with CDs and FIAs?

CDs pay a bank rate and interest is taxed annually. MYGAs lock a fixed rate for the term with tax-deferred growth. Fixed indexed annuities keep principal protection but credit interest based on index formulas (caps/participation) for potential upside.

Who should consider a fixed annuity?

Pre-retirees and retirees seeking principal protection, predictable growth, and simple terms; investors moving CD cash to tax-deferred growth; and IRA owners building a conservative income or reserve sleeve.

Best Fixed Annuities for Conservative Investors

Q: How are fixed annuities taxed?

Growth is tax-deferred in non-qualified annuities; distributions are generally taxed as ordinary income to the extent of gain. In IRAs or qualified accounts, standard retirement account rules apply.

Best Fixed Annuities for Conservative Investors

Over 100 Carriers to Quote From. Here are a few of them!

If you value principal protection, predictable growth, and simple terms, the best fixed annuities for conservative investors can be a powerful alternative to bank CDs and bond funds. Fixed annuities credit a guaranteed rate for a set term, grow tax-deferred, and avoid stock market volatility. This guide explains which fixed annuity designs to consider, how to compare carriers, and practical ways to fit them into your retirement plan.

Compare Today’s Best Fixed Annuities

We shop 100+ carriers to find strong fixed rates and simple contracts for your term and liquidity needs.

Request a Fixed Annuity Quote See Current Fixed Rates

Preview Income Options (Optional)

Many conservative investors pair a fixed annuity for growth with a separate income annuity later. Use the tool to explore lifetime income scenarios; we’ll finalize options in your quote.

What Counts as a “Fixed” Annuity?

MYGA (Multi-Year Guaranteed Annuity): A guaranteed interest rate for a set term (e.g., 2–7 years). Simple, CD-like design with tax deferral.
Traditional Fixed Annuity: Declared rate credited annually; rate may reset each year but includes a guaranteed minimum.
Fixed Indexed Annuity (FIA): Principal protection with interest linked to an index; no market losses. Not strictly “fixed rate,” but widely used by conservative investors seeking potential for higher credited interest over time.

Best Fixed Annuities for Conservative Investors: How to Choose

Term & rate: Match the guaranteed period to your time horizon. MYGAs offer straightforward terms (e.g., 3-, 5-, or 7-year).
Liquidity: Look for 10% free withdrawals, RMD-friendly provisions for IRAs, and reasonable surrender schedules.
Renewal choices: At maturity, you can renew, transfer via 1035 exchange, or annuitize—plan ahead for rate cycles.
Issuer strength: Compare A-rated carriers and state guaranty association limits as part of diversification.
Tax strategy: Non-qualified money grows tax-deferred; IRA/qualified money follows IRA rules. Coordinate with your advisor.

Fixed Annuity vs CD vs FIA (At a Glance)

Feature	Bank CD	MYGA (Fixed Annuity)	Fixed Indexed Annuity
Principal Protection	Yes (FDIC within limits)	Yes (insurance guarantee)	Yes (insurance guarantee)
Rate Type	Fixed	Fixed (term-locked)	Index-linked (caps/participation)
Tax Deferral (Non-Qualified)	No (interest taxed annually)	Yes	Yes
Early Access	Bank penalties	Free-withdrawal allowance; surrender charges apply beyond	Free-withdrawal allowance; surrender charges apply beyond
Income Options	Convert or transfer	Annuitize or GLWB (if offered)	GLWB/annuitize options common

Portfolio Ideas for Conservative Investors

MYGA Ladder: Split funds across 3-, 5-, and 7-year MYGAs. Each year a rung matures, giving you rate flexibility without committing everything at one term.
Safety + Potential: Pair a MYGA for guaranteed growth with a low-cost FIA for index-linked crediting (still no market loss).
Income Later: Let a MYGA grow during your 60s; at maturity consider a lifetime income option for predictable retirement cash flow.

Who Should Consider Fixed Annuities?

Pre-retirees and retirees prioritizing principal protection and steady growth.
Investors holding excess cash or CD balances who want tax-deferred compounding.
IRA owners seeking predictable yields inside conservative sleeves.
Anyone coordinating with lifetime income planning and Social Security timing.

How We Find the Best Fixed Annuities for You

100+ carriers compared: We benchmark rate, surrender schedule, renewal terms, and liquidity side by side.
State-specific availability: We filter by your state and tax status (IRA vs non-qualified) for accurate quotes.
Clear illustrations: No pressure. We provide simple, plain-English comparisons so you can decide confidently.

Helpful resources:

FAQs: Best Fixed Annuities for Conservative Investors

What term length is most popular?

Three to five years is common for balancing yield and flexibility. We’ll show current leaders in your state at multiple terms.

Can I access funds if I need them?

Most fixed annuities offer an annual free-withdrawal amount (often 10%). Withdrawals above that may incur surrender charges during the term.

How are fixed annuities taxed?

Growth is tax-deferred in non-qualified accounts. Distributions are generally taxed as ordinary income. IRA annuities follow IRA rules.

What happens when the term ends?

You can renew, 1035 exchange to a new annuity, annuitize for income, or withdraw—your quote will outline each option before you commit.

Lock In a Competitive Fixed Rate

We’ll compare MYGAs and traditional fixed annuities across 100+ carriers—objective and transparent.

Request Your Fixed Annuity Quote

Prefer to talk now? Call 800-533-5969

Schedule a Free Consultation

Compare carriers, riders, and payouts with an expert—no pressure.