Compare current fixed annuity rates from more than 75 top-rated carriers—without pressure or sales tactics. Fixed annuities are one of the simplest ways to create predictable retirement growth because the interest rate is declared in advance, your principal is protected, and your gains can grow tax-deferred. For many retirees and pre-retirees, this combination is exactly what they want when they’re looking to reduce market exposure but still earn a competitive return.

At Diversified Insurance Brokers, we typically see fixed annuities used as a “foundation” tool in retirement planning. Some people use them as a high-confidence place to park money they don’t want exposed to volatility. Others use them as a ladder strategy, where multiple terms mature at different times so they can reinvest, reposition, or create predictable liquidity windows. And in many cases, clients use fixed annuities as the conservative portion of a broader retirement strategy—especially when they want to avoid the anxiety of day-to-day market swings.

It also helps to clarify what “fixed annuity rates” usually means in the real world. In most cases, people are comparing MYGAs (Multi-Year Guaranteed Annuities). These products function similarly to a CD in the sense that you select a term (like 3, 5, or 7 years) and receive a guaranteed interest rate for that entire term. The difference is that fixed annuities are issued by insurance companies (backed by the insurer’s claims-paying ability) and can provide tax deferral outside of retirement accounts. That tax deferral feature is a major reason many people choose a MYGA for non-qualified money.

Why Consider Fixed Annuities?

Fixed annuities are popular because they remove two major uncertainties: market downside and rate variability during the guarantee period. When you purchase a MYGA, you’re essentially purchasing a predictable outcome over a set term. That predictability becomes more valuable when retirees are trying to plan withdrawals, manage sequence-of-returns risk, or create a stable portion of their retirement assets that they can rely on regardless of what the market does next year.

Guaranteed interest for a defined period. With a MYGA, you lock in a rate for the full term. That means your rate doesn’t fluctuate during the guarantee window, which can be helpful when you’re planning around a known time horizon. Some people select terms based on major retirement milestones—like when they plan to stop working, when they plan to begin Social Security, or when they expect a pension decision to take effect. Others ladder terms intentionally so they aren’t forced to re-rate everything in a single year.

Principal protection from market losses. Fixed annuities do not participate in market declines. Your deposit is protected, and your interest credits are contractually defined. For clients who watched a market downturn derail their confidence, fixed annuities can serve as a “sleep-well” component of retirement assets. This is also why many fixed annuity buyers compare them to bank products first—because the goal is not market upside, it’s stability and planning confidence.

Tax-deferred growth. For non-qualified money, the tax deferral feature is a key advantage. You’re not receiving a 1099 each year for growth the way you might with certain taxable accounts. Instead, gains remain inside the annuity until you take distributions. For some households, deferring taxation can help manage future tax brackets and reduce the drag that annual taxation can create on compounding. If you’re comparing annuities that may later be annuitized for an income stream, you may also want to understand how taxation works in payout form; see our annuity exclusion ratio guide.

No explicit management fees. Unlike many market-based accounts, MYGAs don’t have annual advisory fees or fund expense ratios. That does not mean there are “no costs,” but the way the product is priced is simply different: the insurer sets the declared rate and builds its pricing into that rate. For many retirees, the simplicity is a feature—not having to wonder what fees will do to net returns over time.

Term flexibility. Fixed annuities come in a range of terms, and the term you choose should match the money’s purpose. Shorter terms can offer earlier liquidity or a faster re-rate opportunity. Longer terms can provide higher rates in some environments, while also reducing reinvestment timing risk. This is where strategy matters: it’s rarely about finding a single “best” term for everyone, and more about matching a term to a plan.

For people who want to see how fixed annuities compare to other conservative annuity options, it may also be useful to review highest annuity rates and highest guaranteed annuity rates. Those pages can help you understand where MYGAs fit in the broader annuity rate landscape.

Example of Growth with Fixed Annuities

If you invest $1,000,000 into a 5-year fixed annuity earning 5.40% compounded annually, your account would grow to approximately $1,300,000 by the end of the term—without exposure to market volatility. This type of example helps illustrate why fixed annuities are so compelling for conservative retirees: the math is straightforward, the downside risk is limited, and the time horizon is defined.

That said, it’s important to evaluate what “end of term” means in your plan. If your goal is to keep your money growing, you’ll want to understand the renewal options and what happens if you do nothing at maturity. If your goal is to begin income, you’ll want to compare income rider options or potential annuitization. And if your goal is liquidity, you’ll want to know the penalty-free withdrawal provisions during the term. A fixed annuity can do a great job at what it’s designed to do—provided it’s matched to the purpose of the dollars.

💰 Current Fixed Annuity Rates (as of Feb 2026)

The rate table below is meant to provide a quick snapshot across different term lengths. Treat it as a starting point. In practice, rates can vary by state, premium band, and timing. Some carriers also have strong rate positions in specific terms but not others, which is why seeing multiple terms side-by-side can be useful for ladder planning.

When you’re comparing fixed annuity rates, the “headline rate” matters, but it’s not the only variable. It’s smart to confirm whether the annuity includes a Market Value Adjustment (MVA), what the free withdrawal percentage is, how interest is credited (annual vs. other timing), and what happens at maturity. If you’re planning to use this money inside an IRA, it’s also important to understand how Required Minimum Distributions (RMDs) are handled and whether the contract includes surrender-charge waivers for RMD amounts.

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

To make the table actionable, it helps to think in terms of “use cases.” If you want a near-term re-rate option, shorter terms can be useful. If you’re trying to lock a strong rate for a longer period to reduce reinvestment risk, mid-to-long terms may fit better. If you want both, laddering across multiple terms can create a schedule of maturities that keeps you flexible while still capturing attractive rates today.

Another important question is whether a MYGA is the best match for your objectives compared to a fixed indexed annuity. A MYGA is typically chosen for simplicity and guaranteed growth. A fixed indexed annuity is often chosen when someone wants principal protection but also wants upside potential linked to an index. If you’re weighing that difference, it can be helpful to review best fixed indexed annuity options to understand what you gain (and what you give up) when you move from a declared-rate product to an index-crediting product.

How Fixed Annuities Can Support Income Planning

Many people assume fixed annuities are only for “growth,” but they can also play a role in income planning—especially when used to stabilize a retirement plan. For example, some retirees use a MYGA as a planned “bridge” asset: they lock a rate for a set term and then plan to reassess when the term ends, potentially shifting to an income-focused annuity later. Others use MYGAs to reduce reliance on market withdrawals early in retirement, which can help manage sequence risk.

If your primary objective is monthly retirement income, you may also want to explore annuities that are purpose-built for that, including options where income is guaranteed for life. As a reference point, see annuities for monthly retirement income and lifetime income annuity options. Even if you ultimately select a fixed annuity for accumulation, understanding income-oriented products helps you plan what you might do later with matured or repositioned funds.

It’s also common for people to compare fixed annuity strategies to “pension replacement” thinking—creating a steady, predictable retirement paycheck that is not dependent on market performance. If that resonates with your goals, you may find it useful to read pension alternative strategies to see how annuities are often used to recreate the certainty pensions used to provide.

What’s Next?

Fixed annuities can be an excellent fit if you want guaranteed growth, protection from market risk, and predictable returns. The best results usually come from matching the contract term to your timeline, confirming liquidity provisions, and selecting a financially strong carrier that meets your requirements. With access to over 75 top-rated carriers, we help you compare options side by side so you can see rates, terms, and features in a straightforward format.

If you’re also evaluating bonus-driven products, you can compare those structures separately. Bonus annuities can provide an upfront boost, but they often come with trade-offs in surrender schedules or index terms. If you want to see the latest bonus offers, you can review current bonus annuity rates and then evaluate whether the bonus design actually improves your outcome based on how long you intend to hold the annuity.