The Highest Fixed Annuity Rates For May 2024
As of May 1, 2024, Heartland National offers the overall best fixed annuity rates with 6.30% for a 5-year term, one of the best currently available deals with an “B++” rated insurance company. Fixed annuities provide customers with a guaranteed interest rate over a set period, similar to how certificates of deposit interest rates operate.
| Term | Provider | AM Best Rating | Rate |
| 2-Year | Oceanview | A | 5.45% |
| 3-Year | CL Life | B++ | 6.00% |
| 4-Year | Oceanview | A | 5.70% |
| 5-Year | Wichita National | B++ | 6.30% |
| 6-Year | Oceanview | A | 5.85% |
| 7-Year | Heartland National | B++ | 5.80% |
| 8-Year | Equitrust | B++ | 5.50% |
| 9-Year | American National | A | 5.45% |
| 10-Year | Heartland National | B++ | 5.80% |
| 20-Year | Atlantic Coast Life | B++ | 4.90% |
Current Fixed Annuity Rates
At The Annuity Expert, we are licensed financial professionals who can help you secure a fixed annuity. We understand that retirement planning can be complex, and we are here to help you every step of the way. We offer free quotes and custom solutions tailored to your unique needs. Contact us today to learn more about how we can help you reach your retirement goals.
Best 2-Year Fixed Annuity Rates
| Insurance Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| CL Life | B++ | 2 Years | No | 5.25% |
| Oceanview | A | 2 Years | Yes | 5.45% |
Best 3-Year Fixed Annuity Rates
| Insurance Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| CL Life | B++ | 3 Years | Yes | 6.00% |
| Atlantic Coast | B++ | 3 Years | No | 5.90% |
Best 4-Year Fixed Annuity Rates
| Insurance Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| Oceanview | A | 4 Years | Yes | 5.70% |
| Americo | A | 4 Years | Yes | 5.40% |
Best 5-Year Fixed Annuity Rates
| Insurance Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| Wichita National | B++ | 5 Years | No | 6.30% |
| Heartland National | B++ | 5 Years | No | 5.80% |
Best 6-Year Fixed Annuity Rates
| Insurance Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| Oceanview | A | 6 Years | Yes | 5.85% |
| Americo | A | 6 Years | Yes | 5.65% |
Best 7-Year Fixed Annuity Rates
| Insurance Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| Heartland | B++ | 7 Years | Yes | 5.80% |
| Nassau | B++ | 7 Years | No | 5.65% |
Best 8-Year Fixed Annuity Rates
| Insurance Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| EquiTrust | B++ | 8 Years | Yes | 5.50% |
| American National | A | 8 Years | Yes | 5.45% |
Best 9-Year Fixed Annuity Rates
| Insurance Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| American National | A | 9 Years | Yes | 5.45% |
| Pacific Guardian | A | 9 Years | Yes | 5.30% |
Best 10-Year Fixed Annuity Rates
| Insurance Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| Heartland National | B++ | 10 Years | Yes | 5.80% |
| Oceanview | A | 10 Years | Yes | 5.65% |
Best 20-Year Fixed Annuity Rates
| Insurance Company | A.M. Best Rating | Term | Liquidity | Rate |
|---|---|---|---|---|
| Atlantic Coast Life | B++ | 20 Years | No | 4.90% |
| Atlantic Coast Life | B++ | 20 Years | No | 4.89% |
What Is Guaranteed?
Deferred fixed annuities provide the most significant level of protection. All of the following are guaranteed:
- The initial investment and any accrued interest are fully protected against loss, regardless of the insurer’s general account assets’ performance.
- At the current interest rate established by the insurer, any outstanding amounts are credited to the cash value.
- Credited interest will never be less than the guaranteed minimum rate stipulated in the annuity contract.
Benefits of Fixed Annuities
People who own these annuity products can benefit in a lot of ways.
- Guaranteed Returns: The rates on fixed annuities come from the yield that the life insurance company earns from its investments. Despite the market performance, the life insurance company is responsible for paying whatever rate it has promised in the annuity contract. This differs from variable annuities, where the annuity owner chooses the investments and assumes much of the investment risk.
- Protection From Declining Interest Rates: Once the initial guarantee period in the contract expires, the insurer can change the rate. The rate can go up or down, depending on a stated formula or how much the insurer earns from its investment portfolio. Most fixed deferred contracts include a minimum rate guarantee, protecting you from declining interest rates.
- The account grows tax-deferred: A fixed deferred annuity is a retirement plan where you don’t have to pay ordinary taxes on the money you make immediately. Tax deferral can be a good idea because, over time, that money compounds, and you’ll be able to use it later without paying as much in taxes. The same applies to retirement savings plans like IRAs and 401ks.
- Guaranteed income payments: You can convert fixed-period annuity contracts into an immediate fixed annuity (SPIA) at any time and receive payments at no additional cost. In addition, payout options will give you a guaranteed payment for a fixed period or the rest of your life.
- Safety of principal: The life insurance company is responsible for the security of the principal investment in the deferred annuity and for fulfilling any promises made in the contract. Your money will be safe if something happens to the life insurance company. However, unlike most bank accounts, fixed and variable annuities are not federally insured but are backed by the claims-paying ability of the issuing insurance company. This is why it is essential to only do business with life insurance companies that earn high grades for financial strength from the major independent rating agencies.
| Variable Annuity | Fixed Index Annuity | Fixed Annuity | Immediate Annuity | Deferred Income Annuity | Buffer Annuity | |
|---|---|---|---|---|---|---|
| Principal Protection | No | Yes | Yes | Yes | Yes | No |
| Access To Principal | Yes | Yes | Yes | No | No | Yes |
| Control Over Money | Yes | Yes | Yes | No | No | Yes |
| Tax-Deferred Growth | Yes | Yes | Yes | No | No | Yes |
| Guaranteed Growth | No | Yes | Yes | No | No | No |
| Guaranteed Income | Yes | Yes | Yes | Yes | Yes | Yes |
| Inflation Protection | Yes | Yes | No | Yes | Yes | Yes |
| Death Benefit | Yes | Yes | Yes | Yes/No | Yes/No | Yes |
| Long-Term Care Help | Yes | Yes | Yes | No | No | Yes |
Top 12 Reasons To Buy Fixed Annuities
- Guaranteed interest earning for a set period without market risk.
- Tax-deferral on interest.
- Protection from market volatility.
- Generates a guaranteed retirement income for life, helping your finances.
- Deferred fixed annuity rates offer a higher rate of return than a bank certificate of deposit.
- Offer a higher rate of return than a high-yield savings account.
- The insurance product offers access to your money without penalties.
- Systematic withdrawals of interest.
- Withdrawal charge waivers for long-term care expenses.
- This financial product offers a death benefit.
- No upfront charges or fees.
- Laddered annuities can help with maintaining the cost of living adjustments.
- Annuity payments are also tax-deferred, which allows better compounding interest than a standard CD.
Average Fixed Annuity Rates
What is a reasonable annuity rate? Current average fixed annuity rates can be expected to be between 3.60% and 6.00%, ranging between two years and ten years in length.
Next Steps
There are many types of annuities and retirement plans. However, if you seek a safe and stable investment option, fixed annuities may be the right choice. These insurance contracts offer high interest rates that beat most CD options and protection from stock market fluctuations. Your money will also grow tax-deferred, meaning you won’t have to pay the tax on your earnings until you withdraw them and start receiving income. And if something happens to you before your contract matures, your beneficiaries will receive the death benefit in your agreement. Request a quote from our fixed annuity calculator today to see how much income you could earn for life!
Related Reading: Compare the current best annuity rates today from various types of products.
Fixed Annuity Quotes
Get a fixed annuity quote from a licensed financial professional. This service is free of charge.
Questions From Our Readers
What are current fixed annuity rates?
The best MYGA and fixed annuity rates are 5.80% for a 7-year surrender period, 5.80% for a 10-year surrender period, 6.30% for a 5-year surrender period, and 6.00% for a 3-year surrender charge period.
What is the highest fixed annuity rate?
Wichita National Life Insurance Company offers a competitive fixed annuity rate of 6.30% for five years as of May 1, 2024.
Do fixed annuities have fees?
Fixed annuities do not charge annual fees in the traditional sense but reduce the guaranteed interest rate for a feature or benefit. Surrender charges may be imposed if annuity owners prematurely cancel their retirement plans. Additional tax penalties will incur if owners withdraw money early (before age 59.5).
Are annuities FDIC insured?
Annuities are not FDIC insured or any other federal agency. Instead, they are guaranteed by the issuing insurance company. The state’s insurance commissioners regulate fixed annuities. The State Guaranty Association (SGA) insures insurance companies. The insurance companies are also regulated by the National Association of Insurance Commissioners (NAIC). FINRA, a financial industry regulatory authority, regulates variable annuities.
Are there any 1-year fixed annuity rates?
Clear Spring offers 1-year fixed annuity rates. However, several 2-year fixed annuity rates are also available.
How much does a $100,000 fixed annuity pay per month?
With Corebridge Financial’s Fixed Annuity, you can enjoy a lifetime guaranteed income from $500 to as much as $1,485 monthly.
Why are fixed annuity rates higher than CDs?
Fixed annuity interest rates are often higher than CDs due to longer investment periods and the insurance company’s ability to invest in a broader range of opportunities.
What are the best 30-year annuity rates?
Currently, there are no 30-year fixed annuities available. The longest guaranteed fixed annuity period is 20 years.
If the Federal Reserve increases interest rates, will fixed annuity rates increase, and if the Fed decreases rates, will annuity rates decrease?
Usually, that’s the case. Fixed annuity rates tend to align with broader interest rate trends, including those influenced by the Federal Reserve. So, when the Fed ups its rates, you often see a bump in annuity rates. This happens because insurance companies put much of their annuity money into fixed-income investments like bonds, yielding more when rates increase. On the flip side, if the Fed lowers rates, the yields on these investments typically dip, which can lead to lower rates on fixed annuities.
Can an interest rate change on a fixed annuity?
For a fixed annuity, the interest rate is generally guaranteed not to change during the surrender period, which is the initial term of the annuity contract. However, the interest rate can change once this initial term or surrender period ends and the policy renews.
Do fixed annuities vary by state?
Yes, fixed annuities can vary by state. Insurance companies often tailor their annuity products to comply with each state’s specific regulations and laws. These variations might include differences in available features, benefit options, interest rates, and even the types of annuities offered.
What is the longest-term and highest rate for a fixed annuity right now?
As of May 2024, the longest term would be 20 years. The best rate is 6.3% on a 5-year fixed annuity.