Annuity Educator

Fixed Annuity Rates for April 13

Fixed annuities provide investors with a guaranteed income stream and various customizable options.

Compare the Best Fixed Annuity (MYGA) Rates

Showing 10 of 781 results

Updated April 13

CL Life and Annuity Insurance Company

CL Life and Annuity Insurance Company

Rating

4

Rate

6.00%

Term

3yrs

Liquidity

Interest only

Earning

$19,102

Details
Atlantic Coast Life Insurance Company

Atlantic Coast Life Insurance Company

Rating

4

Rate

5.90%

Term

3yrs

Liquidity

Earning

$18,765

Details
Atlantic Coast Life Insurance Company

Atlantic Coast Life Insurance Company

Rating

4

Rate

5.90%

Term

3yrs

Liquidity

Earning

$18,765

Details
Aspida Life Insurance Company

Aspida Life Insurance Company

Rating

3

Rate

5.80%

Term

5yrs

Liquidity

10%
From year 2

Earning

$32,565

Details
Atlantic Coast Life Insurance Company

Atlantic Coast Life Insurance Company

Rating

4

Rate

5.75%

Term

5yrs

Liquidity

Earning

$32,252

Details
The Ohio State Life Insurance Company

The Ohio State Life Insurance Company

Rating

5

Rate

5.75%

Term

5yrs

Liquidity

Earning

$32,252

Details
The Ohio State Life Insurance Company

The Ohio State Life Insurance Company

Rating

5

Rate

5.75%

Term

3yrs

Liquidity

Earning

$18,261

Details
Atlantic Coast Life Insurance Company

Atlantic Coast Life Insurance Company

Rating

4

Rate

5.75%

Term

5yrs

Liquidity

Earning

$32,252

Details
Aspida Life Insurance Company

Aspida Life Insurance Company

Rating

3

Rate

5.70%

Term

7yrs

Liquidity

10%
From year 2

Earning

$47,409

Details
Nassau Life and Annuity Company

Nassau Life and Annuity Company

Rating

4

Rate

5.65%

Term

7yrs

Liquidity

Earning

$46,922

Details

See Today's Rates Now

Key Takeaways

  • Fixed annuity rates (MYGA) provide stability with guaranteed returns over a set period.
  • Economic conditions, insurer policies, and prevailing interest percentages significantly impact fixed annuity rates.
  • Choosing between the different annuity types involves evaluating features beyond just the headline rate, for example surrender charges and riders.
  • Particular annuity features, such as death benefits or inflation protection, can influence the offered rates.

The Leading Fixed Annuity (MYGA) Rates of the Week

  • 1-Year: 4.75%
  • 2-Year: 5.25%
  • 3-Year: 6.25%
  • 4-Year: 5.70%
  • 5-Year: 6.30%
  • 6-Year: 5.62%
  • 7-Year: 5.80%
  • 8-Year: 5.50%
  • 9-Year: 5.45%
  • 10-Year: 5.80%
  • 15-Year: 4.90%
  • 20-Year: 4.90%

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Fast Fact
Fixed annuities generally offer tax-deferred growth, making them a great option for investors seeking to avoid risk whilst simultaneously growing their investment over time.

What is a Fixed Annuity Rates (MYGA)

A Fixed Rate Annuity gives you the stability and consistency of a fixed interest rate that is determined by the insurance company and is guaranteed never to renew below a stated minimum rate. Interest credits are usually applied daily to the Annuity Value. This type of annuity provides a predictable return and a guaranteed stream of fixed payments over the life of the Annuity. Depending on the provision of the particular Annuity, Annuity owners can make one contribution or many contributions.

Read more: What is a Fixed Annuity?

How Does a Fixed Annuity Rates Work

Essentially, fixed annuity rates determine the interest your investment will generate over the period agreed upon in the contract. They typically offer a fixed interest rate for a specified amount of time, providing predictability in the returns, predominantly targeting risk-averse consumers such as retirees longing to seal their funds into a reliable ecosystem of growth.

Given the volatility of the economic conditions in recent years, the allure of fixed annuities has prominently grown due to its stability merits. The investment is completely independent of market fluctuations and offers secure protection benefits against economic collapses, ensuring your funds are always shielded from the otherwise common fiscal dangers.

Types of Fixed Annuities: An Overview

When considering the various types of fixed annuities, it is essential to understand their differences and unique features. Each type of fixed annuity offers distinctive features made to tailor to specific financial needs.

Traditional Fixed Annuities

Have a fixed interest rate for a certain period, ensuring consistent returns. These annuities are straightforward and ideal for risk-averse investors seeking predictable income.

Fixed-Indexed Annuities

Combining elements of traditional fixed annuities with market-linked features, these annuities offer the potential for higher returns. They provide the opportunity to benefit from market upswings whilst also protecting you against downturns.

Deferred Fixed Annuities

Designed for long-term planning, these annuities allow funds to grow tax-deferred until withdrawals begin. They're suitable to retirees or investors with explicit financial goals.

Immediate Fixed Annuities

Providing immediate income, this type of annuity is purchased with a lump sum and promises regular payouts, making it the ultimate option for consumers seeking receive an income stream directly after purchase.

Fixed Annuities with Riders

Come with additional benefits such as income riders or inflation protection, enhancing certain pros of traditional fixed annuities. Although riders enable further customization of the annuity, they may impact the initial charge.

Fixed Annuity Pros and Cons

Pros

  • Definite cash inflows
  • Financial stability
  • Predetermined interest rate
  • Predictable income stream

Cons

  • Limited potential for growth
  • Lack of flexibility in investments
  • Penalties for early withdrawals

Finding the Right Fixed Annuity Rate for You

Comparing annuity rates goes beyond solely determining the initial rate, as annuities come with various additional benefits like inflation protection or income riders, all features which could significantly impact the final returns on your investment. In order to make an informed decision:

  • Evaluate surrender periods: Knowing when you can withdraw funds without penalties applying is imperative for any investor. Longer surrender periods may offer higher rates, but often limit your access to the input funds.
  • Verify the timespan of guaranteed rate returns: The duration of the fixed rate returns signifies the period during which the fixed rate remains in effect. It is essential to ascertain whether the return rate remains stable through the entirety of the contract or if it may begin varying after a specific period.
  • Consider Additional Features: Look beyond the initial rate, as certain annuities offer features like riders, which enhance death benefits or protection against inflation. Compare these prices to your financial goals to determine how they may impact the offered rates.
  • Ensure the financial stability of the provider: A reputable and financially sound insurer can provide peace of mind regarding the security of your investment.
  • Understand any penalties or fees involved: Take note of any additional fees or charges linked to the annuity. Surrender charges, administrative fees, or fees for optional features could impact the overall returns.
  • Compare across platforms: Check out the rates and offerings across several financial platforms to ensure you’re getting the best deal to compliment your financial objectives.
Pro Tip
Consider gradually buying annuities instead of purchasing a few at once, this way you can capitalize on potential future increases in rates. Such an approach could serve as a prudent hedge, safeguarding against the commitment of all funds at a lower rate.

Riders’ Influence on Annuity Products

Supplying compensations such as income or death benefits, riders play a significant role in shaping the final fixed annuity rate. While these add-ons often enrich the annuity’s utility, they can also influence the initial price. Listed below are a few of the major benefits riders can provide:

  • Greater Income Stream: Income riders can boost the regular income provided by an annuity, ensuring a more substantial and reliable cash flow during specified periods of the investor's life, such as retirement.
  • Inflation Protection: Certain riders guard against the impact of inflation, ensuring that your income maintains its purchasing power over time, safeguarding against rising living costs.
  • Inheritance Planning: Death benefit riders enable funds to be passed on to beneficiaries, securing a financial legacy for loved ones.
  • Long-Term Care Benefits: Some riders offer provisions for long-term care expenses, providing financial aid if the annuitant requires extended healthcare.
  • Lump-Sum Safekeeping: Riders can ensure your original investment remains intact by shielding you from any market declines.
  • Flexible Withdrawals: Unlike typical annuities, riders may allow more flexibility in extractions, providing access to funds without charges or penalties applying.
  • Market-Linked Growth: Investors can link riders to market performance to receive higher returns while remaining protected in the case of market plunges.
  • Customization of Annuity: Riders allow for customization, enabling individuals to tailor annuities to their specific needs, addressing various financial concerns in a single product.

Tips for Optimizing Your Annuity Rate Selection

Timing is Paramount

Monitor prevailing interest rates to lock in favorable prices.

Compare Providers

Evaluate the insurer’s credibility and financial stability to ensure long-term financial peace of mind.

Seek Professional Support

You may want to consult a financial advisor to align the annuity type with your financial plan.

Review Contract Terms

Scrutinize the contract terms, fees, and any hidden charges associated with the annuity.

Important
Ensure that you fully understand the terms and conditions of the annuity contract before committing to purchase the annuity. Pay attention to influential factors like surrender periods and penalty charges upon early withdrawals.

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Frequently Asked Questions About Investing in Annuities

What are fixed annuity rates?

Fixed annuity rates are the guaranteed interest rates offered by insurers on fixed annuities, assuring stable returns over a specific period of time.

How do economic conditions impact fixed annuity rates?

The current economic conditions, like fluctuations in interest rates, directly affect the overall price of the fixed annuity.

Can fixed annuity rates change over time?

Fixed annuity rates can change at renewal or when purchasing a new annuity, as they generally adapt to the current economic climate.

What role do riders play in determining fixed annuity rates?

Riders, while offering additional benefits, might marginally affect initial fixed annuity rates due to the added features they provide.

How can a potential investor maximize their fixed annuity rates with additional contributions?

Additional contributions or premiums can potentially secure higher fixed annuity rates, increasing overall returns.

Who assumes the investment risk with a fixed annuity contract?

In a fixed annuity contract, the insurance company takes the investment risk.

Are fixed annuities a good investment?

Fixed annuities can be good for steady, low-risk income, but they often have lower returns and some fees.

Where are premiums from fixed annuities invested?

Premiums from fixed annuities are usually invested in safe, stable assets like bonds and government securities by the insurance company.

What does a fixed life annuity offer protection against?

A fixed life annuity offers protection against outliving your money, by providing a steady income for life.

How does an index annuity differ from a fixed annuity?

An index annuity differs from a fixed annuity in how interest is earned. In a fixed annuity, the interest rate is set and doesn't change. In an index annuity, the interest rate can vary because it's linked to a market index, like the S&P 500. This means returns can be higher, but there's more risk compared to a fixed annuity.

Do fixed annuities have fees?

Yes, fixed annuities can have fees. These might include administrative fees, surrender charges if you withdraw money early, and sometimes other specific fees. It's important to understand all the fees before buying a fixed annuity.

How are fixed annuities taxed?

Fixed annuities are taxed on the earnings when you withdraw money. The money you put in (your principal) isn't taxed again, but the interest it earns is taxed as regular income. Also, if you withdraw before age 59½, there might be a 10% penalty tax.

What is a deferred fixed annuity?

A deferred fixed annuity is a type of annuity where you put money in, and it earns interest. You don't get income right away. Instead, you get income later, usually at retirement. This waiting period is called the "deferment phase." During this time, your money grows tax-deferred.