Current Fixed Annuity Rates

Current fixed annuity rates represent one of the most straightforward value propositions in the retirement savings marketplace: a carrier declares a guaranteed interest rate, you deposit your premium, and that rate applies for the entire selected term regardless of what happens in financial markets. No index dependency, no caps, no spreads, no participation rates — just a contractual rate that compounds annually on a tax-deferred basis until distributions begin. In June 2026, competitive fixed annuity rates from highly rated carriers range from approximately 4.15% at one year to 6.35% at five years, with select carriers offering rates above 6% across multiple longer term lengths. Understanding which products in this landscape represent genuine value — and which terms, carriers, and structures best serve your specific retirement goal — is the purpose of this page. At Diversified Insurance Brokers, we work with more than 100 carriers and help clients navigate the fixed annuity market the same way professionals do: by looking beyond the headline rate to evaluate the carrier’s financial strength, the liquidity provisions during the term, the market value adjustment mechanics if applicable, and the maturity options when the term ends. If you are newer to fixed annuities as a category, our annuities overview and Annuities 101 guide provide the foundational context before narrowing to specific rate comparisons.

Fixed annuities — specifically multi-year guaranteed annuities, or MYGAs — are the insurance industry’s answer to the demand for guaranteed, predictable accumulation. They function similarly to CDs in concept: select a term, receive a declared rate guaranteed for that full period, and watch the balance grow without market exposure. The distinctions that make MYGAs meaningfully different from bank products are three: they are backed by the issuing insurance carrier’s claims-paying ability rather than FDIC insurance, they grow tax-deferred outside of qualified accounts (meaning no annual 1099 on credited interest), and they offer rate levels that in the current market frequently exceed what comparable-term bank products offer. For buyers using qualified money — IRA, 401(k), 403(b), TSP — the tax deferral is already provided by the account type, so the MYGA’s primary advantages in that context are the guaranteed declared rate, principal protection, and the income conversion options that become available at maturity. The primary reason most people buy annuities — whether fixed or otherwise — comes down to certainty: certainty of return, certainty of principal, and certainty of outcome over a defined planning horizon. Fixed annuities deliver all three more directly than any other annuity structure.

The current fixed annuity market is shaped by the same interest rate environment that has driven broader fixed income yields since 2022. Insurance carriers invest policyholder premiums primarily in investment-grade fixed income instruments — corporate bonds, government securities, and structured products — and the yield they earn on those investments directly funds the declared rates they can offer. Higher long-term rates produce higher MYGA rates; declining rates produce compression in declared rate offers. Buyers who lock in a multi-year MYGA at today’s declared rates are securing those rates for the full selected term regardless of where rates go during the contract period. For buyers who believe rates may decline from current levels, locking longer terms today represents a genuine economic advantage. For buyers who believe rates will continue rising, shorter terms provide re-rating flexibility at maturity. Our current annuity rates page provides the full market context across both fixed and bonus structures for comparison. For the best available fixed annuity options for retirees focused on guaranteed growth, our dedicated resource provides a focused evaluation of the strongest products for that buyer profile.

What Is a Fixed Annuity? Understanding the MYGA Structure

A multi-year guaranteed annuity (MYGA) is a fixed annuity contract issued by an insurance company that credits a declared interest rate for a defined term — typically one to ten years. The structure is designed for simplicity and predictability: you choose the term, the carrier declares the rate, and that rate applies for the entire selected period. There is no index involved, no crediting variability, no caps or participation rates, and no dependence on market performance. The interest accumulates on a tax-deferred basis inside the contract, and you have defined access provisions during the term (typically a free-withdrawal allowance of 5%–10% annually after the first year) and full access at maturity. This design makes MYGAs particularly well-suited for buyers who value certainty of outcome and want to plan precisely around a defined accumulation target. For a comprehensive overview of the annuity landscape from the perspective of conservative investors, our dedicated resource covers the product categories and evaluation framework for this buyer profile in detail.

The principal protection mechanism in a MYGA is contractual rather than market-linked. Unlike a fixed indexed annuity, which protects principal by crediting zero in negative index years, a MYGA protects principal by simply not exposing it to market performance at all. The declared rate is credited regardless of index performance, equity markets, or interest rate movements during the term. The only risk dimension in a MYGA that is meaningfully different from a CD is the counterparty: a CD is FDIC-insured up to applicable limits, while a MYGA is backed by the insurance carrier’s claims-paying ability and subject to state insurance regulatory oversight including state guaranty association protections (which vary by state, typically up to $250,000 for fixed annuities). This is why carrier financial strength — assessed by A.M. Best and other rating agencies — is a relevant evaluation factor for MYGA purchases, particularly for large premium amounts or long surrender periods. Our resource on what an insurance company’s AM Best rating means provides the full context for interpreting the carrier ratings shown in the rate table below.

💰 Current Fixed Annuity Rates (as of June 2026)

The rate table below provides a current snapshot of declared rates across term lengths from competitive carriers. These are guaranteed rates that apply for the full stated term on new contracts issued in June 2026, subject to state availability, premium bands, and carrier-specific terms. Use this table as a starting shortlist — then confirm the free-withdrawal provisions, MVA applicability, maturity options, and carrier financial strength before finalizing any selection. An important note about carrier ratings in this table: some of the most competitive rates are currently offered by carriers with B-range AM Best ratings. Higher-rated carriers (A- and above) typically offer slightly lower declared rates in exchange for the additional financial strength credibility. For large premium amounts or buyers who prioritize financial strength above rate maximization, filtering to A-rated carriers may be appropriate even if the rate differential is meaningful. For buyers who are comfortable with B-rated carriers and are working with amounts within state guaranty association limits, the higher declared rates may represent genuine value. We have access to both segments and can help you evaluate the trade-off for your specific situation.

Rates are subject to change and may vary by state, age, and premium amount. Larger deposits may qualify for additional rate enhancements. Some of the highest rates are offered by carriers with B-range AM Best ratings. We also work with many A-rated and better carriers — contact us to compare the full market for your specific premium and state.

What Drives Current Fixed Annuity Rates — The Economics Behind Declared Rates

Fixed annuity declared rates are not arbitrary — they are the output of a specific set of economics that connects the insurance carrier’s general account investment portfolio to the competitive rate market. When you deposit premium into a MYGA, the carrier invests that money primarily in investment-grade fixed income instruments — investment-grade corporate bonds, agency securities, structured credit — with maturities that typically align with the contract’s surrender period. The yield earned on these investments, net of the carrier’s operating expenses, cost of providing the guaranteed principal protection and any embedded benefits, and required regulatory reserve margins, determines the maximum rate the carrier can declare while remaining financially solvent. In the current environment, with 10-year Treasury yields at elevated levels by historical standards, carriers have significantly more investment income capacity than they did in the low-rate era of 2015–2021 — which is why current declared rates of 6%+ across multiple term lengths represent a materially more attractive environment than buyers faced five years ago.

The rate differential between carriers at the same term length reflects differences in investment strategy, business model, premium volume, and financial strength requirements. Carriers with stronger AM Best ratings (A- and above) typically maintain more conservative investment portfolios and larger reserve buffers — both of which reduce the maximum rate they can declare while sustaining their financial strength profile. Carriers with lower ratings (B range) may have investment strategies that generate higher yields at the cost of accepting modestly more investment risk in their general account — which allows them to declare higher rates. This is not inherently dangerous for buyers, but it does mean that the carrier’s financial strength is a relevant dimension of any rate comparison, particularly for large premium amounts or long surrender periods. Understanding what an AM Best rating means in the context of insurance carrier evaluation helps buyers make informed decisions about the rate-versus-strength trade-off rather than selecting purely on declared rate.

Fixed Annuity vs. CD — The Key Differences Every Buyer Should Understand

The comparison between a fixed annuity (MYGA) and a CD is one of the most common evaluation exercises for conservative savers, and it is worth examining in depth because the differences are meaningful even when the rates look similar. Our dedicated resource on fixed annuities vs. CDs provides a comprehensive side-by-side analysis, but the core distinctions deserve explanation here in the context of current market rates.

Tax Deferral — The Most Significant Non-Rate Advantage

For non-qualified funds (after-tax personal savings outside of IRAs or retirement plans), a MYGA’s tax deferral is a substantial advantage over a CD. A CD generates a 1099-INT every year that reflects the accrued interest — you pay ordinary income tax on that interest annually even if you have not taken a distribution. A MYGA defers all taxation until you actually take a withdrawal or begin receiving income. In a 5-year holding period, the effect of compounding on the full pre-tax balance versus compounding on an after-tax balance (reduced annually by the income tax on accrued interest) can be meaningful — especially for buyers in higher income tax brackets. Our non-qualified annuity guide and annuity exclusion ratio resource provide the full tax mechanics for non-qualified annuity distributions, which are important to understand before selecting either a MYGA or a CD for after-tax money.

FDIC vs. Insurance Carrier Backing

CDs held at FDIC-member banks are insured up to $250,000 per depositor per institution — a government-backed guarantee that covers principal and accrued interest up to the limit. MYGAs are backed by the insurance carrier’s claims-paying ability and subject to state insurance regulatory oversight, including state guaranty association protections that typically cover fixed annuity values up to $250,000 per insurer (limits vary by state). For amounts within those limits, the distinction matters but is not catastrophic — both structures provide meaningful protection. For amounts significantly above those limits, diversification across multiple carriers (and potentially across both product types) is a prudent strategy. Neither the FDIC limits nor the state guaranty association limits are reasons to avoid either product — they are parameters to be aware of when sizing individual positions.

Rate Competitiveness in the Current Environment

In the current market, competitive MYGA rates at the 3-to-7-year range consistently exceed comparable-term CD rates from most national banks, though online banks and credit unions can sometimes offer competitive CD rates for shorter terms. The combination of a higher declared rate and tax deferral on non-qualified money makes the MYGA a compelling alternative to CDs for buyers who do not anticipate needing the full premium during the contract term and who want to minimize current-year tax liability on accrued interest. For buyers evaluating current rates across the full annuity landscape, our highest guaranteed annuity rates resource provides the broadest rate comparison.

Fixed Annuity vs. Fixed Indexed Annuity — Choosing the Right Structure

The most common comparison for buyers already committed to an annuity structure is between a MYGA and a fixed indexed annuity (FIA). Both protect principal from market losses, both grow tax-deferred, and both are issued by insurance carriers. The fundamental distinction is how interest is credited. A MYGA declares a fixed rate that applies every year regardless of market performance — simple, certain, and predictable. A fixed indexed annuity credits interest linked to the performance of an external index — subject to caps, participation rates, or spreads — with a floor of zero in negative index years. This means the FIA can potentially credit more than a MYGA in strong index years, but credits zero in flat or negative years, creating variability that the MYGA eliminates entirely.

For buyers in or near retirement who want predictable accumulation for a defined period — to fund a specific goal, bridge to a Social Security or pension decision, or maintain a conservative allocation — the MYGA’s declared rate simplicity is often the better structural fit. The buyer knows exactly what the contract will be worth at maturity and can plan around it with precision. For buyers who want principal protection but also want the potential for index-linked upside above the MYGA’s declared rate — and who are comfortable with variable annual returns — a competitive fixed indexed annuity may be worth comparing. If the FIA also carries an upfront bonus, the bonus annuity comparison methodology applies. The correct structure is determined by the buyer’s goal — certainty of outcome versus potential for indexed upside — not by which product has the higher headline number at any given point in time.

The MYGA Ladder Strategy — Creating Liquidity Windows Without Sacrificing Rate

One of the most practical applications of current fixed annuity rates is the ladder strategy: purchasing multiple MYGAs at different term lengths simultaneously, creating a series of maturity windows that provide periodic liquidity and re-rating flexibility. A laddered approach allows a buyer to capture rates across the yield curve — locking a 3-year, 5-year, and 7-year MYGA with the same total premium — while ensuring that a portion of the portfolio matures every two to three years. At each maturity, the buyer can reassess: withdraw the funds, reinvest at current rates in a new MYGA, convert to an income product, or roll into a different annuity structure that better serves the evolving retirement plan.

The current rate environment makes ladder planning particularly relevant. With 5 and 7-year MYGA rates above 6%, buyers who split a large premium across three term tiers capture competitive rates today while maintaining the flexibility to re-rate the shorter-term portions every 3–5 years. If rates remain high or rise further, the shorter-term ladders allow reinvestment at new (potentially higher) rates. If rates decline, the longer-term portions continue earning the locked-in rate through the full term — providing a hedge against rate compression. This strategy is especially appropriate for buyers with $300,000 or more to position in conservative guaranteed-rate products, where a single large MYGA purchase in one term creates unnecessary concentration of re-rating risk at a single future date. For context on how the broader current rate environment looks across all annuity types, our current annuity rates page provides the complete market overview.

Market Value Adjustments — Understanding When They Apply and What They Mean

Some current fixed annuity contracts include a Market Value Adjustment (MVA) provision that can affect the contract value on surrenders or withdrawals above the free-withdrawal allowance during the surrender period. Understanding what a market value adjustment is before selecting any fixed annuity product is important because MVA contracts require the buyer to accept a modest additional dimension of risk in exchange for typically higher declared rates.

The MVA mechanism works as follows: when you take a withdrawal above the free amount or fully surrender an MVA contract before the term ends, the carrier adjusts the value up or down based on the change in a benchmark interest rate index since the contract was issued. If rates have risen since your contract was issued, the MVA is negative — meaning you receive less than the full accumulated value on an early withdrawal (because the carrier’s bond portfolio has declined in value relative to when the premium was invested). If rates have declined since your contract was issued, the MVA is positive — you may receive more than the accumulated value on an early exit. Non-MVA contracts do not make this adjustment — surrenders during the term simply trigger surrender charges on excess amounts without an interest rate adjustment to the value. For buyers who genuinely intend to hold the contract through the full term (which is the appropriate use of any MYGA), the MVA provision is largely irrelevant because it only applies on early exits above the free-withdrawal allowance. For buyers with any uncertainty about their actual holding timeline, a non-MVA contract may be worth selecting even at a modestly lower declared rate, to eliminate the MVA risk on any partial or early surrender.

Tax Treatment of Fixed Annuities — Qualified and Non-Qualified Funding

The tax treatment of a MYGA depends on whether the contract is funded with qualified money (pre-tax IRA, 401(k), 403(b), TSP, 457) or non-qualified money (after-tax personal savings). Understanding the distinction before purchase is important for planning distributions correctly.

For qualified money: the annuity exists inside the account’s existing tax-deferred structure. All credited interest accumulates without annual taxation, and all distributions are taxed as ordinary income when received — exactly the same treatment as any other IRA or 401(k) investment. The MYGA structure itself adds nothing to the tax treatment of qualified money beyond what the account type already provides. Required minimum distributions apply at the required beginning date, and most MYGA contracts accommodate RMD withdrawals without triggering surrender charges — but confirm this for any specific product. Our resource on qualified annuity taxation covers the complete mechanics for qualified money. For buyers evaluating whether to use a MYGA for an IRA rollover or 401(k) rollover, our resources on what to do with an IRA after retiring and what to do with a 401(k) after retiring provide the full rollover decision framework.

For non-qualified money: interest credits accumulate inside the contract on a tax-deferred basis — no annual 1099 on accrued interest, no current-year taxation of growth. This is the primary tax advantage of MYGAs over CDs for after-tax money. When distributions are taken, the IRS applies LIFO (last-in, first-out) ordering — earnings come out first as ordinary income, and the original premium (basis) is returned last without additional taxation. For buyers who convert the MYGA into an income stream (annuitization), the exclusion ratio determines the taxable and tax-free portion of each payment. Our non-qualified annuity guide and exclusion ratio resource cover these mechanics in detail. For buyers doing a 1035 exchange from an existing non-qualified annuity — to capture a better current rate in a new MYGA — the exchange is generally tax-free if structured correctly as a direct carrier-to-carrier transfer, and the existing contract’s tax basis carries over to the new contract.

Using Current Fixed Annuity Rates in Retirement Rollover and Transition Planning

Fixed annuities are among the most commonly used structures for rollover money at or near retirement, precisely because the current rate environment makes the MYGA’s predictable accumulation competitive with almost any conservative alternative. A buyer rolling over a $400,000 IRA into a 5-year MYGA at 6.35% would accumulate approximately $545,000 at the end of the term — a completely predictable outcome that supports precise retirement planning. Compare this to maintaining the same $400,000 in a money market or short-term bond fund with uncertain returns and annual taxation (for non-qualified money), and the case for the MYGA in a rollover context becomes clear for buyers who can commit the funds for the full selected term.

The rollover planning context also intersects with several specific retirement transition decisions. Buyers who are delaying Social Security to maximize the benefit often need a conservative bridge asset to support living expenses during the delay period — a 3-year MYGA providing guaranteed income above living expense requirements can fund that bridge without market exposure. Buyers who receive a pension lump sum face a similar decision: the pension alternative strategy frequently involves positioning the lump sum in a MYGA for an initial accumulation period before converting to a guaranteed income structure. For buyers comparing whether an annuity or a 401(k) is better for retirement, the MYGA’s guaranteed rate and predictable outcome represent the conservative end of a spectrum that includes many other structures — and the comparison is ultimately determined by whether the buyer values certainty of outcome or potential for market-driven growth above the guaranteed rate.

Fixed Annuities as a Foundation for Retirement Income Strategy

While many buyers purchase MYGAs purely for accumulation, the MYGA can also serve as a foundation for a phased retirement income strategy. The most common approach is using a MYGA as a “deferral layer” — locking a guaranteed rate for a defined term with the intention of converting the matured value into a guaranteed lifetime income structure (either through annuitization, a systematic withdrawal plan, or transfer to a fixed indexed annuity with an income rider) when income is needed. This approach allows the buyer to capture current declared rates during the deferral phase while maintaining flexibility about the income structure until the maturity date clarifies the available options and rates.

For buyers whose primary objective is guaranteed lifetime income rather than accumulation, our resources on using annuities for monthly retirement income, lifetime income annuity options, and annuitization versus lifetime withdrawal strategies provide the framework for evaluating income-specific structures alongside or instead of accumulation-focused MYGAs. The annuity rescue plan resource addresses situations where an existing annuity — whether a MYGA or another structure — is no longer the best fit for the buyer’s evolving needs, and provides a framework for evaluating replacement or exchange options. For buyers who are assessing their current annuity portfolio in light of today’s competitive MYGA rates and wondering whether a rate-improvement exchange makes sense, our resource on getting a second opinion on an annuity quote provides the evaluation framework. Our resource on how much income an annuity pays translates current accumulated values into realistic income ranges for buyers who want to connect today’s MYGA accumulation numbers to tomorrow’s income potential.