Are you researching the best rates for annuities? Annuities are financial products that provide tax-deferred growth and steady income for a retiree. They typically come with a guaranteed rate of return which is often fixed or variable and can be paid out monthly, quarterly, yearly, or even daily. This guide will compare some of the best annuity rates on the market today!
- What Is An Annuity Rate?
- Best Fixed Annuity Rates For September 2022
- Best Immediate Annuity Rates For September 2022
- Best Premium Bonus Annuity Rates For September 2022
- Best Fixed Index Annuity Rates For September 2022
- Best Lifetime Annuity Rates For September 2022
- Best Short-Term Annuity Rates For September 2022
- Next Steps
- Request Annuity Rates
- Frequently Asked Questions
- Related Reading
What Is An Annuity Rate?
An annuity rate is a percentage by which an annuity grows each year. The annuity provider sets the rate, usually an insurance company that issues the contract. The provider guarantees an interest rate for a set period of two to 10 years. This growth rate is different from an annuity payout rate, which refers to the payment amounts of regular distributions.
For MYGA and fixed annuity rates, the interest rate is fixed like a CD rate. However, the guaranteed rates make it easy to understand how much money you will get back.
Variable, income, and fixed index annuities are a little more complicated. They do not have a fixed interest rate like other types of annuities. That means people will not find the rates for those products when searching for the best kinds of annuities.
Best Fixed Annuity Rates For September 2022
Multi-year guaranteed annuities or MYGAs are a type of fixed annuity. They guarantee you will get a specific interest rate for 2-10 years with tax deferral. MYGAs are subject to surrender charges, which an annuity owner must pay if they cancel the annuity before the term is over. However, MYGAs do offer limited liquidity during the term to withdraw income.
The best MYGA rate is 3.2 percent for a 10-year surrender period, 3.25 percent for a seven-year surrender period, 3.05 percent for a five-year surrender period, and 2.60 percent for a three-year surrender period.
MYGA rates change daily.
Best 2-Year Annuity Rates
The following table illustrates the best fixed deferred annuity rates for a 2-year product. A 2-year annuity rate is the rate of return that an investor would earn if they invest in an annuity for two years. After two years, the owner may choose to transfer the funds without penalty. This rate is guaranteed and backed by the claims-paying ability of the issuing insurance company.
| Company | Rate |
|---|---|
| Aspida | 3.55% |
| Oceanview | 3.50% |
Best 3-Year Annuity Rates
The following table illustrates the best rates for a 3-year annuity contract. A 3-year annuity rate is the rate of return that an investor would earn if they invest in an annuity for three years. After three years, the owner may choose to transfer the funds without penalty. This rate is guaranteed and backed by the claims-paying ability of the issuing insurance company.
| Company | Rate |
|---|---|
| Canvas | 4.60% |
| Aspida | 4.20% |
Best 4-Year Annuity Rates
The following table illustrates the best rates for a 4-year contract. A 4-year annuity rate is the rate of return an investor would earn if they invest in an annuity for four years. After four years, the owner may choose to transfer the funds without penalty. This rate is guaranteed and backed by the claims-paying ability of the issuing insurance company.
| Company | Rate |
|---|---|
| Oceanview | 4.25% |
| Oxford | 4.15% |
Best 5-Year Annuity Rates
The following table illustrates the best rates for a 5-year deferred fixed annuity contract. A 5-year annuity rate is the rate of return an investor would earn if they invest in an annuity for five years. After five years, the owner may transfer the funds from the savings accounts without penalty. This rate is guaranteed and backed by the claims-paying ability of the issuing insurance company.
| Company | Rate |
|---|---|
| Canvas Annuity | 4.60% |
| Aspida | 4.50% |
Best 6-Year Annuity Rates
The following table illustrates the best rates for a 6-year contract. A 6-year annuity rate is the rate of return an investor would earn if they invest in an annuity for six years. After six years, the owner may choose to transfer the funds without penalty. This rate is guaranteed and backed by the claims-paying ability of the issuing insurance company.
| Company | Rate |
|---|---|
| Athene | 4.60% |
| Oceanview | 4.50% |
Best 7-Year Annuity Rates
The following table illustrates the best rates for a 7-year contract. A 7-year annuity rate is the rate of return an investor would earn if they invest in an annuity for seven years. After seven years, the owner may choose to transfer the funds without penalty. This rate is guaranteed and backed by the claims-paying ability of the issuing insurance company.
| Company | Rate |
|---|---|
| Athene | 4.60% |
| Aspida | 4.60% |
| Canvas Annuity | 4.60% |
Best Immediate Annuity Rates For September 2022
Immediate annuity payout rates vary based on your upfront payment to the insurance company. Specific contract terms, gender, age, and other factors can also impact this payout rate. You can use an annuity calculator to estimate monthly income payments or contact us to help you compare quotes. This does not include deferred income annuities or a qualified longevity annuity contract (QLAC).
Rates are based on a $100,000 annuity. Immediate Annuity payouts are annuitized annual payments. Income annuity rates change weekly. Contact us to estimate monthly payments.
| Payout | Age 60 | Age 65 | Age 70 |
|---|---|---|---|
| Single Life | $5,661 | $6,600 | $7,562 |
| Life with 10-Year Period Certain | $5,697 | $6,533 | $7,275 |
| 10-Year Period Certain | $10,515 | $10,515 | $10,515 |
| 20-Year Period Certain | $6,053 | $6,053 | $6,053 |
Best Premium Bonus Annuity Rates For September 2022
The following table illustrates the best bonuses. Deferred annuities can offer a guaranteed sign-on bonus called a premium bonus. In addition, when a new annuity owner purchases their deferred annuity, they may receive a guaranteed rate of return.
| Product | Bonus |
|---|---|
| Athene Performance Elite | 20% |
| American Select Bonus | 16% |
| F&G Performance Pro | 15% |
| North American Secure Horizon Plus | 15% |
| Midland IndexBuilder | 11% |
Best Fixed Index Annuity Rates For September 2022
Fixed index annuity rates are slightly more complicated than a traditional fixed annuity or MYGA. Index annuities allow annuity owners to choose how they earn interest, a fixed interest rate, or the performance of an index like the S&P 500 or a combination of both.
Fixed indexed annuities are not stock market investments and do not directly participate in an index. Instead, they are insurance policies for retirement and can not lose money in a stock market crash.
These fixed indexed annuity strategies illustrate the highest hypothetical historical rates of return (2010 – 2020). These are non-guaranteed returns. Contact us about the products with these strategies.
Best Index Annuity Rates
| Annuity Company | Fixed Indexed Annuity |
|---|---|
| American Equity | AssetShield 10 Annuity |
| Athene Annuity | Performance Elite 15 Plus |
| Midland National | RetireVantage Annuity |
| Nationwide | Peak 10 |
Best Illustrated Fixed Indexed Annuity
The following indexes illustrate a hypothetical annuity return among index annuities. Of course, rates of Return are not guaranteed.
| Product | Rate of Return |
|---|---|
| 2-Year Morgan Stanley Dynamic Global PTP Enhanced Participation Rate | 15.67% |
| 2-Year Putnam Dynamic Low Volatility ER PTP Enhanced Participation Rate | 16.46% |
| 2-Year Nasdaq FC PTP Participation Rate | 18.39% |
Best Lifetime Annuity Rates For September 2022
Lifetime annuities provide annuity owners a guaranteed income for the rest of their life or the rest of the annuity owner and spouse’s lives, even if the annuity has run out of money.
Fixed income annuity rates are based on a $100,000 annuity. The retirement income start dates will be immediate, after five years or after ten years. Annuity payouts are annual payments.
| Age | Immediate | 5 Years | 10 Years |
|---|---|---|---|
| 60 | $6,100 | $9,273 | $13,448 |
| 65 | $6,730 | $10,151 | $14,611 |
| 70 | $7,350 | $10,986 | $16,891 |
Best Short-Term Annuity Rates For September 2022
Deferred annuity terms can be as short as two years in length. Here are the best short-term annuity rates.
| Company | Term | Rate |
|---|---|---|
| Aspida | 2 Years | 3.55% |
| Canvas Annuity | 3 Years | 4.60% |
| Oceanview | 4 Years | 4.25% |
| Canvas | 5 Years | 4.60% |
Next Steps
Finding the best-fixed annuity rates, immediate annuity rates, premium bonus annuity rates, and more can be challenging. But that’s where we come in – we’re here to help you compare quotes from some of the top life insurance companies and find the perfect plan for your retirement savings needs. Use our annuity rate calculator to get an estimate today, then request a quote and see how much you could save!
Request Annuity Rates
Frequently Asked Questions
What is an annuity rate?
Annuity rates are the percentage by which an annuity increases each year. Insurance companies set annuity rates. The return rate for annuities is determined by how much money is invested, the interest rate, and the length of the contract.
Are annuity rates going up?
Yes, annuity rates are going up. This is due to a few different factors. First, the Federal Reserve has recently raised interest rates. This means that banks and other financial institutions can charge more for loans, which include annuities.
What is today’s best annuity rate?
After researching 1,107 annuities, the top rate for a three-year annuity is 4.60%. For a five-year, it’s 4.60%, and for a 10-year annuity, it’s 4.45%.
What is the average interest rate on an annuity?
Interest rates depend on the type of annuity you buy. Fixed annuities offer guaranteed returns ranging between 3% and 4.25%, while the interest rates of variable annuities depend on the performance of a connected investment portfolio. Annuities with higher interest rates also carry a greater risk of losing money.
What is the rate of return on an annuity?
Annuities typically offer a fixed rate of return, meaning that your investment will earn a guaranteed interest rate over the annuity’s life. However, some annuities offer variable rates of return, which means that your investment’s interest rate will fluctuate along with the market. Variable annuities generally offer higher potential returns than fixed annuities but also come with higher risks.
Which annuity pays the most?
Fixed index annuities pay more than fixed annuities. On the other hand, variable annuities pay more than fixed index but come with the highest risks.
What is the safest type of annuity?
The safest type of annuity is a fixed annuity. Fixed annuities offer guaranteed returns, meaning you will earn a set interest rate regardless of how the market performs. However, fixed annuities typically offer lower potential returns than other annuities.
What is the annuity rate today?
The best MYGA rate is 4.60% for a 10-year surrender period, 4.65% for a seven-year surrender period, 4.80% for a five-year surrender period, 4.60% for a three-year surrender period, and 3.55% for a two-year surrender period.
What is a good interest rate on an annuity?
A good interest rate on an annuity will depend on several factors, including the type of annuity, the insurer, and the individual’s financial situation. However, as a general rule of thumb, most experts agree that an interest rate of around 3-5% is considered a good rate on an annuity.
Which annuity pays the highest interest?
Canvas Annuity currently pays the highest annuity rate, at 4.60%.
Will annuity rates rise in 2022?
Yes, annuity rates are rising in 2022 and will continue to rise for at least the rest of the year.
What is a good rate for a three-year annuity?
A good interest rate on a three-year annuity will again depend on several factors, but as a general rule of thumb, most experts agree that an interest rate of around 3-4% is considered a good rate.
What is the average return on an annuity?
The average return on an annuity will depend on the type and the individual’s financial situation. However, as a general rule of thumb, most experts agree that an interest rate of around 3-5% is considered a good rate on a fixed annuity, 5-6% on a fixed indexed annuity, and over 6% for a variable annuity.
How are annuity rates calculated?
The interest rate is calculated using many factors, including the current market conditions, the length of the annuity term, and the insurer’s claims-paying ability. Ultimately, the goal is to set the interest rate high enough to cover the insurer’s costs while providing a competitive return for the investor.
How often do annuity rates change?
Annuity rates can change daily, monthly, or annually, depending on the type of annuity and the insurer, for new buyers. However, most annuities will have a set interest rate for the length of the contract after the purchase has been made.
What is the best annuity company?
The best annuity company can provide a competitive interest rate while maintaining a high level of financial stability, customer service, and satisfaction. When choosing an annuity company, it is important to do your research and ensure that you are comfortable with the company you are doing business with.
Will annuity rates rise as interest rates rise?
Yes, as interest rates rise, so will annuity rates. This is because annuities are directly tied to the interest rate market. When interest rates go up, so do annuity payouts. Conversely, when interest rates go down, annuity payouts will also decrease.
What affects annuity rates?
A number of factors can affect annuity rates, including the type of annuity, the insurer, and the individual’s financial situation. In general, however, annuity rates are directly tied to the interest rate market. When interest rates go up, annuity rates go up. Conversely, when interest rates go down, annuity rates go down.
Where are the best annuity rates?
The best annuity rates can be found by shopping around and comparing different insurers. The Annuity Expert currently provides the largest selection of annuities in the United States. However, it is important to check annuity rates regularly to ensure you get the best possible rate.
Related Reading
- How Much Does a $50,000 Annuity Pay?
- How Much Does a $100,000 Annuity Pay?
- How Much Does a $200,000 Annuity Pay?
- How Much Does a $250,000 Annuity Pay?
- How Much Does a $500,000 Annuity Pay?
- How Much Does a $1,000,000 Annuity Pay?
- How Much Money Do You Need To Retire With $100,000 A Year In Income?
- How Much Money Do You Need To Retire With $50,000 A Year In Income?
*Disclosure: Some of the links in this article may be affiliate links. I may receive a commission at no cost to you if you purchase a policy.