Fixed annuity rates (often called MYGA rates) let you lock in guaranteed growth without market risk—making them a favorite for retirees and pre-retirees who want predictable accumulation and a clearer path to future income. A fixed annuity is built for one job: protect principal while crediting a contractually stated interest rate for a set term. That simple structure is exactly why many people use fixed annuity rates as a “sleep-at-night” alternative to CDs, bonds, or cash—especially when they want to step away from market volatility but still earn meaningful interest.

At Diversified Insurance Brokers, we help clients compare fixed annuity rates across top carriers, match the right term length to their timeline, and avoid common surprises—like surrender schedules, rate renewal assumptions, or market value adjustment (MVA) language. The best fixed annuity rate is not just the highest number on a screenshot. It’s the best combination of rate, term, liquidity provisions, renewal flexibility, and carrier strength for your retirement plan. That’s why we shop the market and show you multiple designs side-by-side, with plain-English tradeoffs.

This page explains how fixed annuity rates work, what affects rates today, how to choose term lengths, and how to translate growth into real retirement paychecks using the income calculator below.

What Are Fixed Annuity Rates?

Fixed annuity rates are the guaranteed interest rates credited by the insurance company for a stated term. Many people refer to these as MYGA rates because the contract guarantees the rate for multiple years—often 2, 3, 5, 7, or even 10 years, depending on availability. During the guarantee period, your principal does not go down due to market fluctuations, and interest generally compounds inside the contract on a tax-deferred basis (tax treatment depends on your situation and whether the annuity is funded with qualified or non-qualified money).

That “term” structure is what makes fixed annuity rates so easy to understand. If you choose a 5-year MYGA, you’re choosing a defined window where the rate does not change, where the insurer is committing to credit a stated amount of interest, and where the contract’s rules for access and surrender charges are spelled out in advance. People who value predictability often prefer fixed annuity rates because they can plan around known growth and a known timeline, rather than hoping a portfolio performs well during the exact years they need withdrawals.

At the end of the term, you typically have choices: renew (often into a new guarantee period at then-current rates), move the money, take withdrawals according to the contract, or—when it matches your goals—convert part of the value into guaranteed lifetime income. The contract details matter, which is why a quick comparison across multiple carriers is so valuable.

What Affects Today’s Fixed Annuity Rates?

Fixed annuity rates are closely tied to how insurers invest their general account assets, which often include high-quality bonds and other conservative holdings. When the broader interest-rate environment changes, insurers update the rates they can realistically support while still meeting long-term obligations. That’s why fixed annuity rates can move over time, and why “best rates” are not static—they depend on current market conditions and carrier pricing decisions.

Term length is usually the most visible lever. Longer terms often allow carriers to offer higher fixed annuity rates because the insurer can invest for a longer horizon and doesn’t have to reprice the contract as quickly. But “longer is better” isn’t automatically true. The right term depends on when you might need access to funds, whether you want to ladder multiple contracts, and whether you want flexibility to reposition later if your goals change.

State availability also matters. Fixed annuity rates and product designs vary by state due to approvals and contract provisions. Two people in different states can see meaningfully different options on the same day. Premium banding can matter too. Some carriers offer slightly better rates when the premium amount reaches certain thresholds, which is another reason we quote multiple carriers instead of assuming the “headline rate” is best for every situation.

Finally, carrier appetite changes. Sometimes a highly rated carrier wants to grow assets and becomes aggressive in pricing. Other times the same carrier may pull back. Comparing the market is how you capture the best opportunities when they appear.

How to Choose the Right Fixed Annuity Term

Choosing a term is less about “guessing where rates go next” and more about matching your money to your timeline. Think of the term as the period you want a guaranteed outcome. If the money might be needed soon—home repairs, a planned move, a vehicle purchase, or a short runway to retirement—shorter terms can reduce friction. If the money is earmarked for later, longer terms can improve the rate and lock in the plan.

A 2–3 year fixed annuity rate can make sense for people who want flexibility, who may be repositioning multiple accounts over time, or who want the option to roll into a new contract sooner. A 5-year term is popular because it often offers a strong balance of yield and manageable commitment. A 7–10+ year term can be attractive when you’re funding a later retirement income phase or when you’re building a longer-duration “safe bucket” intended to stabilize your plan for a decade.

Many people choose a ladder strategy instead of one single term. A ladder means splitting a lump sum into multiple fixed annuities with different term lengths, so a portion matures periodically. This can help you avoid putting every dollar into one renewal date, and it can reduce the stress of trying to time the market. It also gives you natural decision points—if your income needs change, you can adjust the next rung of the ladder.

If you’re not sure which term fits best, a practical approach is to map “when you might need the money” in plain language. Then we can match that schedule to the best fixed annuity rates available for those windows.

Liquidity and Access: What to Check Before You Commit

Fixed annuity rates come with contract rules. Most contracts include penalty-free withdrawals (commonly up to 10% per year) after an initial period, plus waivers in specific situations such as nursing home confinement or terminal illness. These features are useful, but they don’t make a fixed annuity a checking account. The contract is still designed for the term you selected.

The most important items to review are the surrender charge schedule and any Market Value Adjustment (MVA) language. Surrender charges apply when withdrawals exceed the free amount during the surrender period. MVAs can adjust the surrender value up or down depending on interest-rate changes at the time you take a larger-than-free withdrawal. In some environments, an MVA can be favorable; in others, it can reduce the amount you receive. Knowing the rules in advance keeps you from being surprised later.

This is also where “rate shopping” can go wrong if someone only looks at the highest rate. Two products may advertise similar fixed annuity rates, but one may have friendlier liquidity features, a simpler surrender schedule, or more flexible renewal options. The right decision is the one that supports your real-world plan, not just the highest number.

If you want a deeper dive into these mechanics, you can review: Annuity Surrender Charges and MVA and What Is a Market Value Adjustment?.

Who Fixed Annuities Fit Best

Fixed annuity rates are typically most attractive to people who prioritize principal protection, want a predictable contract outcome, and prefer to reduce exposure to market volatility—especially during the years surrounding retirement. They can also be useful for people who want to reposition money that’s currently sitting in low-yield cash, short-term bond funds, or CDs, especially when tax-deferral is valuable.

Many retirees use fixed annuity rates to create a “safe bucket” intended to cover upcoming withdrawals, large planned expenses, or the essential spending portion of their plan. That can reduce the pressure on investment accounts during down markets and help manage sequence-of-returns risk. Pre-retirees often use a MYGA to lock in known growth while they decide when to claim Social Security, when to retire, or how to structure future income.

Fixed annuities are not the answer to every goal. If someone wants higher upside potential tied to index crediting strategies, a fixed indexed annuity may fit better. If someone needs income to start immediately, an immediate income annuity may be more direct. But for predictable accumulation with principal protection, fixed annuity rates are often hard to beat.

From Fixed Annuity Rates to Retirement Paychecks

Many people start their search by asking, “What are the best fixed annuity rates?” But the more important question is often, “What does that do for my retirement income?” A fixed annuity can grow predictably during its term, and that value can later be positioned to create future income—especially when paired with other income sources like Social Security, pensions (if available), or rental income.

The lifetime income calculator above helps illustrate a key idea: guaranteed income is typically based on age, payout options, and contract design. A plan can use fixed annuity rates to build a stable base now, then add an income-focused strategy later. This “accumulate first, income later” structure is one reason fixed annuities remain popular in retirement planning.

If your goal is to build a pension-like paycheck, you can also explore our lifetime income resource here: Lifetime Income Annuities.

Fixed Annuity Rates vs. Fixed Indexed Annuities

A fixed annuity gives you a guaranteed interest rate for a set term. A fixed indexed annuity (FIA) protects principal as well, but credits interest based on an index-linked formula using caps, participation rates, or spreads. In strong index years, an FIA can potentially credit more than a fixed annuity; in weak index years, it may credit zero—without taking away prior gains. The “right” choice depends on whether you want a pure contractual rate or you want the possibility of additional upside tied to index performance.

Some retirees prefer to keep their safe money simple and choose fixed annuity rates for the stable bucket. Others allocate part of their plan to an indexed strategy to pursue higher credited interest while still avoiding direct market loss. We can model both approaches and show how each impacts cash flow, future income, and flexibility—especially if you’re coordinating withdrawals across multiple accounts.

If you want an indexed comparison alongside fixed annuity rates, we can provide side-by-side illustrations that highlight the tradeoffs in a way that’s easy to understand.