What are the Best Fixed Annuities
Jason Stolz CLTC, CRPC
What are the best fixed annuities? For most people, the “best” fixed annuity is not a single product, but the one that fits their time horizon, risk tolerance, and income needs. At Diversified Insurance Brokers, we work as an independent, fiduciary insurance agency licensed in all 50 states, helping clients compare fixed annuities from many top-rated companies rather than pushing a single carrier.
Fixed annuities can be an excellent choice for conservative savers who want guaranteed interest, principal protection, and tax-deferred growth. The key is understanding how multi-year guaranteed annuities (MYGAs), traditional fixed annuities, and bonus annuities work, and then matching the right contract to your goals. On this page, we will walk through how fixed annuities work, the criteria we use when evaluating “best” options, and how to use our income calculator and quote tools to see what today’s fixed annuities can do for you.
To see current offers in real time, you can review our current annuity rates and our regularly updated pages on today’s best annuity rates and top annuity rates as of today, then request a personalized review from our annuity advisors.
What Is a Fixed Annuity and How Does It Work?
A fixed annuity is a contract with an insurance company where you trade a lump sum (or a series of premiums) for guaranteed interest and, if you choose, guaranteed income in the future. Unlike market-based investments, a fixed annuity does not rise and fall with the stock market; the insurance company bears the investment risk and promises a specific rate or payout formula.
Many people first encounter fixed annuities when they want a CD alternative that pays more than the bank but still protects principal. A multi-year guaranteed annuity, or MYGA, is a type of fixed annuity that guarantees an interest rate for a set number of years (for example, five, seven, or ten years). During that term, your money grows tax-deferred, and you typically have some limited liquidity each year for withdrawals without surrender charges.
Other fixed annuities are designed more for income than accumulation. These contracts may offer lifetime payments that you cannot outlive, often discussed in more detail on our page covering the best retirement income annuities. Whether your priority is interest, income, or a combination of both will heavily influence which fixed annuity is best for you.
How We Define the “Best” Fixed Annuities
The word “best” can be misleading if it only refers to the highest interest rate on the page. At Diversified Insurance Brokers, we look at fixed annuities through a broader lens. A strong interest rate is important, but so are the carrier’s financial strength, contract flexibility, and long-term income options.
When we review fixed annuities for a client, we typically examine:
1. Financial strength of the insurer. We favor companies with solid financial ratings, disciplined risk management, and a history of honoring commitments. A higher rate is not “better” if it comes with significantly weaker financial backing. Because we are independent, we can compare multiple carriers rather than being tied to one company’s product line.
2. Guaranteed interest and crediting options. A competitive MYGA or fixed annuity offers an attractive guaranteed rate for the time period you select, with clear rules for how interest is credited. Our in-depth educational article on how annuities earn interest explains how rates, compounding, and contract terms influence your long-term outcome.
3. Surrender period and liquidity. The “best” fixed annuity for a short time horizon may be different from the best choice for a ten-year or longer horizon. We pay close attention to surrender schedules, free-withdrawal provisions, and available riders so that your contract supports your cash flow needs instead of getting in the way.
4. Income options and flexibility. Some fixed annuities are built just to accumulate interest and then roll into another contract or account at the end of the term. Others offer strong lifetime income options built in or through riders. If you expect to convert your annuity into retirement income, we coordinate your fixed annuity selection with the strategies discussed on our page about annuities that pay income for life.
5. Tax treatment and overall plan fit. All else being equal, a fixed annuity that complements your existing IRAs, 401(k)s, and non-qualified accounts is better than one that creates tax problems. We look at how a fixed annuity will interact with the rest of your retirement plan, including the concepts we cover on how IRAs work and how 401(k)s work.
Fixed MYGAs vs. Bonus Annuities: When Each Might Be “Best”
Many of our conversations also include fixed indexed annuities and bonus annuities, because some clients are looking for an upfront bonus or the potential for higher long-term growth. While this page focuses on fixed annuities, it is helpful to understand how these variations compare so you do not accidentally choose the wrong tool for your goal.
A fixed MYGA generally offers a straightforward deal: you invest a lump sum, and the insurer guarantees a specific interest rate for a set number of years. These contracts are ideal for people who value simplicity, predictability, and a clear fixed rate. For many conservative investors, the best fixed annuity is a MYGA with a strong rate, solid financial rating, and appropriate liquidity.
Bonus annuities, on the other hand, may credit an upfront bonus to your account value or income base. This can look very attractive, especially when combining a bonus with lifetime income features. However, the trade-off is usually a longer surrender period, more complex fee structure, or more restrictive contract terms. Our article on bonus annuity pros and cons goes into greater detail on when these designs may or may not be in your best interest.
If you are specifically interested in bonus structures, we also maintain dedicated pages for comparing offers such as our 10 percent bonus annuity. In many cases, the right answer is to pair a straightforward fixed MYGA for part of your money with a carefully chosen bonus or income-focused annuity for the remainder.
Fixed Annuities vs. Other Retirement Vehicles
Fixed annuities sit alongside other tools like IRAs, 401(k)s, Roth IRAs, and brokerage accounts. They are not designed to replace all investments, but to provide a stable, contractually guaranteed piece of your retirement plan. When we compare options, we often reference the advantages and limitations compared to the tax-advantaged accounts we cover in our pages on how Roth IRAs work and how to protect your funds in retirement.
For some clients, the best fixed annuity is one that pairs with Social Security and other guaranteed income sources, creating a baseline of monthly income that covers essential expenses. Our discussion on how Social Security and annuities work together explains how we coordinate claiming strategies with annuity design so that your guarantees complement one another rather than overlap inefficiently.
Ultimately, the best fixed annuity is not about chasing the single highest rate. It is about finding a contract from a financially sound company that delivers the right mix of safety, yield, liquidity, and income options for your situation. That is why we encourage side-by-side comparisons across multiple carriers instead of defaulting to whatever your bank or local agent happens to offer.
Fixed and Bonus Annuity Rates
Compare Top Fixed Annuity Rates
Want to see which fixed annuities may be best for your time horizon and risk tolerance? Request a personalized quote comparing multiple carriers and guarantee periods.
Explore Bonus and Income Annuities
Curious whether a bonus annuity or income-focused design might provide a better long-term benefit than a simple fixed rate? Compare options side by side with an independent advisor.
Fixed Annuity Income Calculator
Once you have a sense of which fixed annuities look most appealing, the next step is to translate interest rates into monthly income. Our annuity income calculator helps you estimate how much guaranteed income a given premium can generate at different ages and payout options. This can be especially helpful when coordinating with other planning tools such as IRAs, Roth IRAs, and employer plans.
💡 Note: The calculator accepts premiums up to $2,000,000. If you are investing more, results increase in direct proportion — for example, doubling your premium roughly the guaranteed income at the same age and options.
Why Work with Diversified Insurance Brokers
Diversified Insurance Brokers is a family-owned, fiduciary insurance agency headquartered in Suwanee, Georgia and licensed in all 50 states. Because we are independent, we can compare fixed annuities across many top-rated companies instead of being limited to a single carrier’s products. Our role is to help you understand the trade-offs, not to push you into a one-size-fits-all solution.
We routinely analyze how fixed annuities can support long-term goals such as protecting principal, filling income gaps, or complementing existing retirement accounts. When appropriate, we also review whether pairing a fixed annuity with other strategies, such as those outlined on our pages about how fixed indexed annuities work or life insurance tax treatment, might be more effective.
Most importantly, you remain in control. Our job is to show you options, explain the pros and cons, and help you make an informed decision. If a fixed annuity does not improve your situation, we will tell you that as well.
Talk with an Independent Advisor
If you are trying to decide which fixed annuity is best for your situation, it can be difficult to sort through carrier marketing pieces and conflicting advice online. A brief conversation with an experienced, independent advisor can save you time and help you avoid expensive mistakes.
To get started, you can request a quote using the buttons above or call our team directly. We will ask a few questions about your goals, timeline, and existing accounts, then prepare a clear side-by-side comparison of fixed annuity options tailored to you.
Related Fixed Annuity Topics to Explore
For a deeper dive into specific annuity concepts, you may also want to review these educational pages:
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What is a fixed annuity?
A fixed annuity is a contract with an insurance company that guarantees interest on your premium and protects your principal from market losses. In exchange for your lump sum or series of payments, the insurer agrees to credit interest according to the contract terms and, if you choose, provide guaranteed income in the future.
How do you decide which fixed annuities are “best”?
We look beyond just the highest advertised rate. When we evaluate fixed annuities, we consider the insurer’s financial strength, the guaranteed interest rate and term length, liquidity and surrender charges, income options, and how the contract fits into your overall retirement plan. The best fixed annuity for you is the one that balances these factors based on your goals.
What is the difference between a fixed annuity and a MYGA?
A multi-year guaranteed annuity (MYGA) is a type of fixed annuity that guarantees a specific interest rate for a set number of years, such as five or seven. Other fixed annuities may have different crediting structures or focus more on lifetime income. MYGAs are often used as a CD alternative for predictable, tax-deferred growth over a defined term.
Are fixed annuities safe?
Fixed annuities are considered conservative vehicles because they offer contractual guarantees backed by the issuing insurance company. Your principal is protected from market volatility, and your interest and income guarantees are defined in the contract. However, they are not bank products or FDIC insured, so it is important to choose financially strong insurers and appropriate coverage amounts.
How do I compare fixed annuity rates?
To compare fixed annuity rates, you should look at the guaranteed interest rate, the length of the guarantee period, the insurer’s financial rating, and the liquidity provisions. Our team can prepare a side-by-side comparison that shows how different MYGAs and fixed annuities stack up for your time horizon and premium amount.
Can a fixed annuity provide lifetime income?
Yes. Many fixed annuities can be converted into lifetime income through annuitization or income riders. This allows you to turn your accumulated value into a paycheck you cannot outlive. We help you evaluate whether using a fixed annuity for income makes sense compared to other options in your retirement plan.
What are the fees on fixed annuities?
Traditional fixed annuities and MYGAs generally do not charge explicit annual fees the way some investments do. Instead, the insurer sets the guaranteed interest rate after accounting for their own costs and profit margin. Some income or benefit riders may have separate fees. We disclose any charges and help you understand how they affect your guarantees.
Are fixed annuities a good alternative to CDs?
For many conservative savers, fixed annuities and MYGAs can be an attractive alternative to CDs because they often offer higher guaranteed rates and tax-deferred growth. However, annuities have surrender charges and different liquidity rules, so they are best suited for money you can leave invested for the full term.
How do I know if a fixed annuity is right for me?
If you want safety, predictable growth, and potentially guaranteed income later, a fixed annuity may deserve consideration. The best way to know is to review your goals, time horizon, and other accounts with an independent advisor who can show you both the benefits and trade-offs before you make a decision.
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
