Highest Fixed Annuity Rates

The word “fixed” in “highest fixed annuity rates” is the most important word on this page. It is not a marketing descriptor — it is a structural term that defines precisely how the annuity accumulates value and why buyers who specifically want a fixed annuity are making a different choice than buyers who want an indexed or variable annuity. A fixed annuity accumulates interest at a declared rate that does not change during the selected term, does not fluctuate based on index performance, and does not require the buyer to make any crediting decisions after issuance. The contrast with a fixed indexed annuity (FIA) — where annual interest crediting varies based on an external index’s performance subject to caps, spreads, and participation rates — is central to understanding what a “highest fixed annuity rate” actually offers. An FIA might credit 8% in a strong index year and 0% in a flat year, with an average that may or may not exceed the fixed annuity’s declared rate depending on market conditions. A fixed annuity at 6.35% credits exactly 6.35% every year for the full selected term, regardless of what any index does. For buyers who want to eliminate variability entirely and know exactly what their contract will be worth at a specific future date, the highest fixed annuity rate is the right starting point. For the broader annuity marketplace context before narrowing to fixed rates specifically, our annuities overview and Annuities 101 guide provide the product category foundations. For the comprehensive current rate landscape, our current fixed annuity rates page and the full current annuity rates hub provide the complete market view.

Today’s highest fixed annuity rates — reaching 6.35% at 5-year terms and 6.25% at 10-year terms — are the product of an elevated investment-grade bond yield environment that has given carriers more general account investment income to work with than at any point since the early 2010s. Fixed annuity carriers invest policyholder premiums in investment-grade fixed income portfolios and pass a portion of the investment yield through to declared rates after reserving for operating costs, regulatory capital requirements, and the cost of providing principal protection. The highest fixed annuity rates in the current market come primarily from carriers with B-range AM Best ratings — carriers whose investment portfolios are positioned toward the upper range of investment-grade credit, generating higher portfolio yields that translate into higher declared rates. For buyers evaluating whether a fixed annuity is the right structure before comparing specific rates, our resource on what a deferred annuity is and the guide on how annuities earn interest provide the foundational mechanics. For a direct comparison of the highest fixed annuity rates against CDs and other conservative alternatives, our fixed annuities vs. CDs resource provides the complete after-tax analysis.

The highest fixed annuity rates today operate in a planning context that extends well beyond the rate table. A buyer who captures today’s highest fixed rate of 6.35% at a 5-year term and holds through maturity produces a guaranteed, predictable accumulation outcome — but the larger planning question is how that fixed rate accumulation connects to what comes after: whether it serves as a conservative growth engine within a broader retirement portfolio, a bridge to Social Security optimization, a foundation for guaranteed lifetime income, or a standalone accumulation vehicle for specific future liquidity needs. The annuities for conservative investors guide covers the portfolio construction context. The resource on what is the best retirement income annuity covers the income conversion context. Understanding both allows buyers to select the highest fixed annuity rate not just as a rate-maximization exercise but as a genuinely informed planning decision about where fixed-rate accumulation fits within the complete retirement income picture.

What “Fixed” Actually Means — And Why It Changes the Entire Evaluation

In the annuity marketplace, “fixed” is a structural term describing how the contract credits interest — not a general descriptor of safety or conservatism. A fixed annuity credits a declared rate that is set at issuance and does not change during the selected term under any conditions. This is distinct from three other annuity structures that buyers sometimes compare: variable annuities (which invest in market sub-accounts and credit returns based on actual investment performance), fixed indexed annuities (which credit interest based on external index performance subject to annual caps and spreads), and bonus FIAs (which credit an upfront premium bonus plus index-linked interest subject to crediting terms). Among these structures, only the fixed annuity delivers a guaranteed, unchanging declared rate for the full term. Understanding how a fixed indexed annuity works in direct comparison to a fixed annuity clarifies the primary choice buyers face when evaluating the highest available rates: maximum certainty through a declared fixed rate, or maximum potential through index-linked crediting with a zero-loss floor. Both can be excellent tools — they serve different goals, and the right choice depends entirely on whether the buyer’s priority is knowing exactly what the contract will accumulate (fixed annuity) or having the possibility of earning more than the fixed rate in favorable index years while never losing principal (FIA).

For buyers who choose the fixed annuity structure, the evaluation then narrows to finding the highest available declared rate for the selected term. Today’s highest fixed annuity rates by term are shown in the table below. These rates represent the declared accumulation rate — the exact percentage by which the contract balance grows annually for the full term. No additional index-crediting decision is needed, no annual cap applies, and no spread reduces the credited amount. The declared rate shown in the table is the rate the buyer receives on the full accumulation value, compounding annually through the surrender period. For buyers who want the specific per-term rate analysis, our dedicated resources on the best 5-year annuity rate, best 7-year annuity rate, and best 10-year annuity rate provide the term-focused analysis within the fixed rate category.

📊 Highest Fixed Annuity Rates (as of July 2026)

The table below shows the highest currently available fixed annuity declared rates by term from competitive carriers. These rates are for new contracts issued in June 2026. Click any rate to request a live quote for your state, age, and premium amount. Note that the 8-year rate provider links to a carrier review page — as with all carriers in this table, review the full carrier profile before selecting. A-rated alternatives at modestly lower declared rates are available at each term length and can be included in any quote comparison.

Rates are subject to change and may vary by state, age, and deposit size. Higher premiums may qualify for enhanced rates. Guarantees rely on the insurer’s claims-paying ability.

How Fixed Annuity Rates Are Structured — Simple vs. Compound, and What You Actually Receive

Fixed annuity declared rates are almost universally expressed as annual rates, but the compounding mechanics and crediting timing can differ across products in ways that produce slightly different accumulation outcomes even at the same stated rate. The distinction between simple and compound interest in annuities is important here because most MYGAs use annual compounding — where interest credited in year one becomes part of the base on which year two’s interest is calculated, producing a compounding accumulation that grows faster than simple interest on the original premium alone. On a $250,000 deposit at 6.00% simple interest for 5 years: $325,000. At 6.00% annual compounding for 5 years: approximately $334,558. The $9,558 difference is the compounding advantage that accumulates over the term, and it represents genuine additional value that comes from leaving credited interest inside the contract rather than withdrawing it annually. Most MYGA buyers hold the full term without taking withdrawals, which means they receive the full compounding benefit of the declared rate throughout. The fixed annuity structure is specifically designed to maximize this compounding effect because the declared rate applies to the full accumulation value — including previously credited interest — with no cap, spread, or crediting method complexity reducing the effective rate in any year during the term. This simplicity is one of the primary reasons buyers who prioritize maximum certainty of outcome choose fixed annuities over FIA alternatives, even when the FIA’s potential crediting exceeds the fixed rate in favorable market years.

Surrender Charges and MVA — The Mechanics That Govern Early Exit From the Highest Fixed Rates

Every fixed annuity with a declared term includes provisions that govern early exit — the conditions under which a buyer can access funds above the annual free-withdrawal allowance during the surrender period. Understanding these mechanics before selecting any fixed annuity is essential because they determine how the contract actually behaves if the buyer’s circumstances change during the term. The two primary early-exit provisions in fixed annuities are surrender charges and the Market Value Adjustment. A comprehensive understanding of annuity surrender charges and the MVA is the most important contract-reading skill for any fixed annuity buyer, and the resources on this topic provide the complete mechanical explanation.

Surrender charges are percentage reductions applied to the surrendered amount when a withdrawal exceeds the annual free-withdrawal allowance during the surrender period. A typical surrender charge schedule starts at 7%–10% in year one and declines by approximately 1%–1.5% per year until it reaches zero by the end of the surrender period. This means a buyer who exits in year two of a 7-year annuity faces a substantially higher surrender charge than a buyer who exits in year six. The free-withdrawal provision — typically 5%–10% of the accumulation value annually after the first contract year — allows modest liquidity without triggering surrender charges. Buyers who plan their withdrawals to stay within the free-withdrawal allowance can access meaningful annual cash flow (up to $21,500 per year on a $300,000 annuity at a 7% free-withdrawal rate, for example) without any early-exit cost.

The Market Value Adjustment (MVA) is a second provision found in some — but not all — fixed annuity contracts. The MVA adjusts the value received on surrenders or excess withdrawals based on interest rate movements since the contract was issued. If rates have risen since your contract was issued, the MVA reduces the surrender value (because the carrier can now reinvest your returned premium at higher rates, offsetting some of the cost of the early exit). If rates have declined, the MVA increases the surrender value. The MVA does not change the declared rate credited to the accumulation value — it only affects what the buyer receives if they exit above free-withdrawal limits during the term. For buyers who hold through the full term, the MVA is completely irrelevant — it never applies to the maturity value. For buyers with any uncertainty about holding through the full term, choosing a non-MVA product at a slightly lower declared rate eliminates this variable from the early-exit calculation. Many of the highest fixed annuity rates in the current market come from carriers and products that include MVA provisions — confirming whether any specific product includes an MVA and how it would function under realistic early-exit scenarios is a required step in the evaluation process.

Fixed vs. Indexed — When the Highest Fixed Rate Is the Better Choice

The comparison between the highest available fixed annuity rate and the best available FIA crediting terms is the most common structural question buyers face in the current annuity market. The answer is not universal — it depends on the buyer’s specific goal and the comparison horizon. Fixed annuities outperform FIAs definitively in any scenario where the buyer needs absolute certainty of outcome: if you need to know what the contract will be worth at a specific future date within a narrow planning tolerance, the fixed annuity’s declared rate provides that certainty and the FIA’s variable annual crediting does not. Fixed annuities also outperform FIAs in any scenario where the index underperforms the fixed rate — in years when a major index is flat or slightly positive, an FIA with a cap may credit nothing or very little, while the fixed annuity credits the full declared rate regardless. In historical periods with significant index volatility (flat years, mild-positive years, negative years where the FIA credits zero), fixed annuities frequently outperform FIAs in cumulative net accumulation over multi-year periods — even when the FIA credits more in strong index years. FIAs outperform fixed annuities when the index delivers consistent strong returns above the cap: if an FIA with an 8% cap participates in multiple consecutive years of 10%+ index returns, the cumulative index crediting will exceed what the fixed annuity’s declared rate produces over the same period. The critical variable is the index performance environment during the specific contract period — which is unknowable at the time of purchase. For buyers who want to eliminate this uncertainty entirely, the highest fixed annuity rate is the correct choice. For buyers who can accept some variability in annual crediting in exchange for the possibility of higher long-term accumulation, an FIA may be a better structural fit. Understanding how a fixed indexed annuity works in depth is the prerequisite for making this comparison accurately rather than based on headline numbers.

How to Use the Highest Fixed Annuity Rates in a Retirement Portfolio

The Conservative Accumulation Role

The most common use of the highest fixed annuity rates is as a conservative accumulation vehicle within a broader retirement portfolio — a position that earns competitive guaranteed growth on a defined portion of savings while the rest of the portfolio may remain in market-based investments or other structures. For buyers in this role, the fixed annuity is the “certainty sleeve” — the allocation where the outcome is known regardless of market conditions. The appropriate size of this allocation depends on the buyer’s overall retirement plan, income needs, and risk tolerance. A buyer with a $1,000,000 retirement portfolio might allocate $300,000–$400,000 to a fixed annuity ladder while keeping $600,000–$700,000 in other structures. The fixed annuity allocation earns today’s highest available declared rate in a principal-protected, tax-deferred structure, while the remainder of the portfolio remains positioned for growth or income according to the buyer’s broader plan. Our resource on annuities for conservative investors and the broader best fixed annuity for retirees guide cover the portfolio construction context for this role in detail.

The Retirement Income Foundation

The highest fixed annuity rate also serves a foundational role in retirement income planning — as the accumulation vehicle that builds value during a deferral period before the funds are converted to guaranteed lifetime income through an income rider or annuitization. For this use case, the fixed annuity accumulates at today’s highest declared rate for the selected term, then at maturity the buyer evaluates whether to renew the fixed annuity, convert to an income-generating structure, or reposition into a new product. The bridge between fixed accumulation and guaranteed lifetime income is covered in our resource on what is the best retirement income annuity — which evaluates the income conversion decision specifically. The income calculator embedded on this page provides a practical tool for estimating how different premium amounts and deferral periods translate to guaranteed monthly income options, helping buyers evaluate the accumulation-to-income trajectory before committing to a specific fixed annuity term. Understanding what a GLWB rider is and how the guaranteed lifetime withdrawal benefit works in conjunction with fixed annuity accumulation provides the full picture of how today’s highest fixed rate interacts with the income-planning tools available at or after maturity. The coordination of fixed annuity growth with broader income sources — including Social Security — is covered in our resource on how Social Security and annuities work together.

The Pension Replacement Role

For buyers who received a pension lump sum or who have a large retirement account balance and want to replicate a pension’s predictable monthly income, the highest fixed annuity rate during a deferral period followed by conversion to a guaranteed income structure represents one of the most direct pension replacement strategies available. Our dedicated resource on the pension alternative strategy covers this use case in full — including how the fixed annuity’s accumulation phase maximizes the starting position for the income phase, and how the income structure can be designed to replicate a pension’s survivor benefit provisions through spousal continuation provisions and joint life payout options.

The Fixed Annuity Ladder — Using the Highest Rates Across Multiple Terms Simultaneously

Rather than choosing a single highest fixed annuity rate at a single term, many buyers use a fixed annuity ladder strategy — purchasing multiple fixed annuities at different terms simultaneously to capture today’s competitive declared rates at multiple points on the term spectrum while creating scheduled maturity windows for future liquidity and reinvestment decisions. Today’s fixed annuity rate environment is well-suited for laddering because competitive declared rates (6.00%–6.35%) exist across the 3-to-8-year term spectrum — meaning a ladder does not significantly sacrifice rate at any tier compared to concentrating everything at one term. A simple 3-5-7 ladder on $300,000 might allocate $100,000 to Mountain Life’s 3-year Secure Summit at 6.00%, $100,000 to Mountain Life’s 5-year Secure Summit at 6.35%, and $100,000 to Wichita National’s 7-year Security MYGA at 6.10%. The three rungs mature in 2029, 2031, and 2033, respectively — creating three independent decision points that provide flexibility without requiring any early-exit from any contract. At each maturity, the buyer evaluates the rate environment and either renews, repositions, or converts the maturing rung to a different structure. For buyers specifically looking at short-term fixed annuity options within the ladder, our resource on best short-term MYGA annuities covers the 1-to-3-year tier specifically.

Moving Qualified Funds to Capture the Highest Fixed Annuity Rates

A significant portion of fixed annuity purchases involve funds from qualified retirement accounts — IRAs, 401(k)s, 403(b)s, TSPs — that the buyer wants to reposition into a guaranteed, principal-protected, fixed-rate structure. The transfer must be structured correctly to preserve the tax-deferred status of the funds and avoid creating a taxable event. For IRA-to-fixed-annuity moves, a direct trustee-to-trustee IRA transfer is the cleanest approach — the receiving carrier accepts the IRA assets directly without funds passing through the buyer’s hands. Understanding how to transfer an IRA to an annuity is the practical starting point for this process. For employer plan assets (401(k), 403(b), TSP), a direct rollover to a new IRA hosted inside the fixed annuity is standard — with the employer plan custodian issuing payment directly to the receiving carrier. For non-qualified annuity holders doing a 1035 exchange to capture today’s highest fixed rates, the exchange must be structured as a direct carrier-to-carrier transfer to preserve the tax-free treatment. For the qualified money rollover decision in the broader retirement planning context, our resources on what to do with a 401(k) after retiring and what to do with an IRA after retiring provide the full decision framework.

Death Benefits and Legacy Planning Within the Highest Fixed Annuity Rates

Fixed annuities including MYGAs typically provide a contractual death benefit equal to the accumulated value at the time of the owner’s death — the premium plus credited interest minus any withdrawals taken. This death benefit passes directly to named beneficiaries outside of probate according to the contract terms and applicable state law. Understanding whether annuities have a death benefit and how the benefit is calculated, paid, and taxed across different beneficiary scenarios is part of using the highest fixed annuity rate effectively within a complete estate plan. For married buyers, the spousal continuation provision available in many fixed annuity contracts allows the surviving spouse to continue the contract — maintaining the fixed rate, preserving the tax-deferred structure, and avoiding forced distribution at the owner’s death. For buyers evaluating the full beneficiary and legacy planning picture, our resource on annuity beneficiary death benefits provides the complete analysis of how death benefits function across different contract types and beneficiary designations.

Tax Treatment of the Highest Fixed Annuity Rates

The tax treatment of fixed annuity interest creates a meaningful after-tax yield advantage for non-qualified (after-tax) money compared to competing taxable instruments at the same declared rate. For qualified money (IRA, 401k, 403b, TSP): interest accumulates tax-deferred and all distributions are taxed as ordinary income when received — the same treatment as any qualified account investment. For non-qualified money (after-tax savings): the fixed annuity credits interest without generating an annual 1099, allowing the full pre-tax balance to compound throughout the selected term without annual tax drag. When non-qualified distributions begin, the IRS applies LIFO ordering — earnings come out first as ordinary income, then the original premium (basis) is returned tax-free. Our resources on non-qualified annuities and qualified annuity taxation provide the complete mechanics for both funding sources. For buyers who want to understand whether the fixed annuity structure also accommodates fees and whether those fees affect the effective rate, our resource on whether annuities have fees provides the direct answer: standard MYGAs do not carry ongoing management fees — the declared rate shown in the rate table is the rate credited to the accumulation value with no additional fee reduction.