Review current fixed annuity rates from more than 75 highly rated carriers—without sales pressure or aggressive tactics. Fixed annuities remain one of the most straightforward tools for predictable retirement accumulation because the interest rate is declared in advance, your principal remains protected, and earnings grow tax-deferred. For many retirees and those nearing retirement, this combination provides a way to reduce market exposure while still earning a competitive return.

At Diversified Insurance Brokers, fixed annuities are often used as a foundational component of retirement planning. Some individuals use them as a stable place to position funds they do not want subject to volatility. Others implement ladder strategies, selecting multiple terms that mature at different intervals to create liquidity windows or reinvestment flexibility. In many situations, fixed annuities serve as the conservative allocation within a broader retirement strategy—particularly for those who prefer to avoid daily market fluctuations.

When people reference “fixed annuity rates,” they are typically comparing MYGAs (Multi-Year Guaranteed Annuities). These contracts function similarly to CDs in that you choose a term—such as 3, 5, or 7 years—and receive a guaranteed interest rate for that entire period. The key distinction is that fixed annuities are issued by insurance companies and are backed by the insurer’s claims-paying ability, while also offering tax deferral outside qualified retirement accounts. That tax-deferred feature is one of the primary reasons many individuals select a MYGA for non-qualified funds.

Why Consider Fixed Annuities?

Fixed annuities eliminate two primary uncertainties: exposure to market losses and interest rate changes during the guaranteed term. When you purchase a MYGA, you are securing a defined outcome over a specific time horizon. That predictability becomes especially valuable when retirees are coordinating withdrawals, managing sequence-of-returns risk, or stabilizing a portion of assets regardless of future market performance.

Guaranteed interest for a defined period. A MYGA locks in your rate for the entire selected term. The interest rate does not fluctuate during that guarantee window, making planning more precise. Some individuals align terms with retirement milestones—such as stopping work, initiating Social Security, or finalizing pension decisions—while others intentionally stagger maturities to avoid re-rating all assets in the same year.

Principal protection from market losses. Fixed annuities do not participate in market downturns. Your initial deposit is protected, and interest credits are contractually specified. For investors who value stability over volatility, fixed annuities can provide peace of mind. Many buyers compare them first to bank products because the objective is consistency and planning confidence rather than market-driven upside.

Tax-deferred growth. For non-qualified funds, tax deferral is a meaningful advantage. Unlike certain taxable accounts, you do not receive an annual 1099 on interest growth. Gains remain inside the annuity until distributions begin. This structure can assist with long-term compounding and tax bracket management. If you anticipate converting the annuity into an income stream, understanding payout taxation is important; see our annuity exclusion ratio guide.

No explicit management fees. MYGAs do not charge annual advisory fees or fund expense ratios. While pricing is built into the declared rate, many retirees appreciate the transparency and simplicity of knowing their guaranteed return without layered annual costs.

Term flexibility. Fixed annuities are available in various durations, and the term selected should align with the purpose of the funds. Shorter terms provide quicker liquidity and re-rate opportunities. Longer terms may secure higher rates in certain environments and reduce reinvestment risk. Selecting the appropriate term is about alignment with your timeline—not identifying a universal “best” option.

To compare fixed annuities with other conservative annuity structures, review highest annuity rates and highest guaranteed annuity rates to see how MYGAs fit within the broader rate environment.

Example of Growth with Fixed Annuities

If you allocate $1,000,000 into a 5-year fixed annuity earning 5.40% compounded annually, the value would grow to approximately $1,300,000 at the end of the term—without exposure to market volatility. This example highlights why fixed annuities appeal to conservative retirees: the calculation is straightforward, downside risk is limited, and the time horizon is clearly defined.

It is equally important to understand what happens at maturity. If your objective is continued accumulation, evaluate renewal provisions. If income is the goal, review income rider or annuitization options. If liquidity is critical, confirm penalty-free withdrawal allowances during the contract term. A fixed annuity performs best when matched carefully to the intended use of the funds.

💰 Current Fixed Annuity Rates (as of March 2026)

The table below provides a general snapshot across multiple term lengths. Treat it as a reference point. Rates may vary by state, premium band, and timing. Certain carriers may lead in specific durations but not others, which is why side-by-side comparison supports ladder planning.

When reviewing rates, look beyond the headline percentage. Confirm whether the contract includes a Market Value Adjustment (MVA), the percentage allowed for penalty-free withdrawals, the timing of interest credits, and renewal terms at maturity. If funding within an IRA, verify how Required Minimum Distributions (RMDs) are handled and whether surrender charges are waived for RMD amounts.

Some of the highest annuity rates are sometimes offered by carriers with B or B+ ratings. However, we also work with many insurance companies rated A-, A, A+, and A++ by AM Best. In many cases the difference in rates between carriers is small, and the most important factor is choosing a company you feel comfortable with. We have access to dozens of carriers and can help you shop the market to find the option that best fits your goals.

Rates are subject to change and may vary by state, age, and premium amount. Larger deposits may qualify for additional enhancements.

To make these rates practical, consider your intended use. Shorter durations may suit near-term liquidity needs. Longer terms may help reduce reinvestment uncertainty. A ladder strategy can balance both objectives by creating staggered maturity dates while capturing today’s available rates.

If you are deciding between a MYGA and a fixed indexed annuity, remember the core difference: MYGAs provide declared, guaranteed growth, while fixed indexed annuities offer principal protection with potential index-linked upside. To evaluate that comparison further, review best fixed indexed annuity options.

How Fixed Annuities Can Support Income Planning

Although often selected for accumulation, fixed annuities can also contribute to income strategy. Some retirees use a MYGA as a bridge asset—locking a competitive rate for a defined term and reassessing at maturity for potential income conversion. Others utilize MYGAs to reduce early retirement reliance on market withdrawals, helping manage sequence risk.

If guaranteed lifetime income is your priority, consider reviewing annuities for monthly retirement income and lifetime income annuity options. Even if you begin with a fixed annuity for growth, understanding income-focused alternatives prepares you for future decisions.

Some individuals also compare fixed annuity strategies to pension-style planning—creating predictable retirement paychecks independent of market performance. For additional insight, review pension alternative strategies.

What’s Next?

Fixed annuities can be a strong fit for those seeking guaranteed growth, principal protection, and predictable returns. The most effective approach involves aligning the contract term with your timeline, verifying liquidity provisions, and selecting a financially strong carrier. With access to over 75 top-rated insurers, we help you compare rates, terms, and features clearly and efficiently.

If you are also evaluating bonus-oriented products, compare them separately. While bonus annuities may provide an upfront enhancement, they can involve longer surrender schedules or adjusted crediting structures. To review current offers, see current bonus annuity rates and assess whether the bonus structure aligns with your intended holding period.