Best Fixed Annuity Rates for October 2026 (Live MYGA Table)

Compare the Best Fixed Annuity Rates for October 2026

Find the highest fixed annuity yields from over 50+ A-rated insurance companies. Whether you are looking for a 3-year, 5-year, or 10-year term, the tables below provide live, daily-updated MYGA rates in the United States to help you outpace inflation and protect your retirement principal. Compare the latest top-tier yields below.

Want to lock in one of these rates today? Call (770) 755-1565 for a free 5-minute rate verification and availability check.

Rates Last Updated: October 15, 2026

Looking for Lifetime Income instead of Growth? The rates on this page are for fixed interest accumulation (MYGAs). If you want to see how much monthly income an annuity will pay you for life, click here to use our Lifetime Income Calculator.

Best Fixed Annuity Rates from A-Rated Insurance Companies

A Quick Warning on How Other Sites Inflate Their Rates: As you compare options online, be aware of two common tactics used to inflate numbers artificially:

• Teaser Rates: Many sites display a high “Year 1” rate that drops significantly in subsequent years. The tables below show the Actual APY (Annual Percentage Yield) locked in for the entire term.
• Simple vs. Compounding Interest: Some MYGAs quote simple interest, which makes the total growth appear larger up front but actually leaves you with less money at the end of the term compared to compounding interest. We prioritize true compounding APYs to ensure your wealth is actually growing at the rate you expect.

We strongly recommend insurers with a minimum of an “A-” or better financial strength rating with AM Best. These are the fixed annuity contracts that met this criterion.

Term	Interest Rate	Insurer and Product	Financial Rating
2 Years	5.15%	Oceanview Harbourview MYGA	A
3 Years	5.75%	Athene MaxRate 3 MYGA	A+
4 Years	5.75%	Oxford Life Multi-Select MYGA	A
5 Years	6.30%	Aspida Synergy Choice MYGA	A-
6 Years	6.00%	Sagicor Milestone Max MYGA	A
7 Years	6.35%	Aspida Synergy Choice MYGA	A-
8 Years	5.90%	Oxford Life Multi-Select MYGA	A
9 Years	5.95%	Oxford Life Multi-Select MYGA	A
10 Years	6.00%	Lincoln Financial MYGuarantee Plus MYGA	A+

Looking for a specific carrier? Talk to a licensed fixed annuity broker to see which A-rated companies are currently offering the best private rates in your state.

Looking for a specific carrier or want help comparing these rates? Speak to an independent annuity broker who sells fixed annuities with the highest guaranteed payouts in your state.

Compare Today’s Highest-Yielding Fixed Annuities (Regardless of Rating)

Note: These products often offer the highest rates in the industry but may carry lower financial strength ratings than the carriers in the previous section. We recommend these for investors who prioritize maximum yield.

Term Length	APY	Insurer and Product	Financial Rating
1-Year	4.25%	ELCO Guardian Eagle MYGA	B++
2 Years	5.15%	Oceanview Harbourview MYGA	A
3 Years	6.05%	Wichita National Security MYGA	B+
4 Years	5.75%	Oxford Life Multi-Select MYGA	A
5 Years	6.40%	Wichita National Security MYGA	B+
6 Years	6.10%	Oceanview Harbourview MYGA	A
7 Years	6.35%	Aspida Synergy Choice MYGA	A-
8 Years	5.90%	Oxford Life Multi-Select MYGA	A
9 Years	5.95%	Oxford Life Multi-Select MYGA	A
10 Years	6.30%	Wichita National Security MYGA	B+
20 Years	5.90%	Atlantic Coast Life Safe Harbor Bonus Guarantee MYGA	C+

All Multi-Year Guaranteed Annuity (MYGA) Rates

The following table highlights today’s best fixed annuity rates from many insurers we represent to ensure transparency. For safety, we typically recommend an “A-” or higher financial rating with AM Best. Use the filters to view A-/A/A+ first.

To provide the most current market data, our team performs daily audits of fixed annuity yields. We aggregate real-time pricing from industry-leading benchmarks, including Cannex and Annuity RateWatch, as well as proprietary rate filings from the insurance companies we represent

Reference Key for Fixed Annuity Interest Rates Table

• Company Name: The insurance provider offering the fixed annuity. This column is the issuing institution responsible for backing the guarantee.
• Product Name: The specific annuity contract or product being offered. Different products may have unique features, surrender schedules, or liquidity options.
• AM Best Rating: A financial strength rating from AM Best, indicating the insurer’s ability to meet its contractual obligations. Ratings range from A++ (Superior) to D (Poor).
• Established In: The year the insurance company was founded. A longer track record can provide added confidence in the company’s stability.
• Term: The guaranteed interest rate period for the annuity, typically ranging from 1 to 20 years. This column reflects the duration for which the rate is locked in.
• Rate (Up to): The maximum annual interest rate offered for that term. May vary based on deposit size, state of residence, or other factors.
• Annual Liquidity: The percentage of the contract value you may withdraw each year without penalty (e.g., 10% free withdrawal), subject to contract terms and conditions.

Rate Decision Watch: As of October 2026, fixed annuity rates and payouts remain near 15-year highs. While the Fed signaled shifts in late 2025, current MYGA yields continue to offer a significant premium over traditional bank CDs.

MYGAs That Have the Best Renewal Rates

Most buyers only look at the initial 3-year or 5-year rate. But what happens when that term expires?

If you don’t move your money, your contract automatically renews at the carrier’s current rate—but it can never drop below the Minimum Guaranteed Interest Rate (MGIR). While many carriers set their MGIR at a worst-case scenario of just 1.00%, a few select contracts offer significantly stronger downside protection.

Currently, these two MYGAs lead the market with a guaranteed 2.90% and 2.55% minimum renewal rate:

• American National (ANICO) Palladium MYGA Series: Known for high industry ratings, guaranteeing your money never earns less than 2.90% annually once your initial term ends.
• Axonic MYGA: A highly competitive contract on both the front and back end, ensuring your cash continues to compound at a respectable 2.55% floor while you decide your next move.

To reduce the risk of future cap or participation-rate cuts, compare annuities designed to avoid renewal-rate drops, MYGAs, and renewal-rate lock features before buying.

Why this matters: If interest rates crash in the future, carriers with a 1.00% floor will drop your renewal rate to exactly 1.00%. Securing a 2.55% floor today gives you the breathing room to evaluate whether to cash out, renew, or execute a tax-free 1035 exchange without your money stagnating.

Rate Holds, Locks, and Funding Timelines

Most carriers hold your applied-for rate for a short window (typically 30 to 60 days) while funds are transferred by rollover, exchange, or 1031 exchange.

During that lock, many follow a “higher-of” rule: if rates rise before your money arrives, you’ll likely get the higher of the locked rate or the new rate. If rates fall, your original rate is protected—provided the funding is secured within the lock period.

Lock windows are strict and vary by carrier. This feature is most useful for rollovers and 1035 exchanges that take days or weeks; same-day wires rarely require it.

Funding Sources and Rollovers (All Account Types)

You can fund a fixed annuity with non-retirement funds or by transferring retirement dollars into a tax-sheltered account. Accounts that can fund the annuity:

• Cash/bank funds,
• Taxable brokerage,
• Living trusts,
• Traditional IRA,
• Roth IRA,
• SEP IRA,
• SIMPLE IRA,
• Inherited IRA (trustee-to-trustee only)
• Employer plans—401(k), 403(b), 457(b), TSP—via rollover to an IRA annuity.

Existing annuities and certain life insurance policies can be transferred via a 1035 exchange. Why it helps: Rollovers and 1035 exchanges preserve tax deferral while potentially improving rate, term, or features.

How Insurance Companies Decide Fixed Annuity Interest Rates

When you buy a fixed annuity, the insurance company isn’t just pulling rates out of thin air. Several financial levers influence the interest rate they can offer you.

Key Factors

• Bond Market Yields: Insurers invest heavily in high-quality corporate and government bonds. The yield they earn on these investments directly affects the rates they credit to annuity holders.
• Federal Reserve Policy: When the Fed raises or lowers interest rates, bond yields shift, which eventually trickles down to declared rate annuities. Higher Fed rates generally mean higher annuity interest rates.
• Company Expenses and Profit Margins: Insurers factor in operating costs, reserve requirements, and the profit margin they need to stay competitive.
• Competitive Market Pressures: If competing carriers offer more attractive rates, insurers may adjust their own rates to attract buyers.
• Surrender Period Length: Longer surrender charge schedules often allow insurers to offer higher rates, as they can invest your money for a longer period without incurring liquidity risk.

Traditional Fixed vs. MYGAs

For first-time buyers, deferred fixed-rate annuities (also known as Multi-Year Guaranteed Annuities) are a type of fixed annuity contract that insurance companies offer, which provides a contractually guaranteed interest rate for a set period, similar to a CD. 

Traditional Fixed Annuities

• Predetermine the interest rate at the start of the contract.
• Some guarantee the rate for the entire term, but many only guarantee it for the first year.
• After year one, the insurer can reset the rate annually, provided it doesn’t fall below the contract’s minimum guaranteed rate.
• Works best if you’re comfortable with potential rate changes during the contract.

MYGAs (Multi-Year Guaranteed Annuities)

• Lock in a single interest rate that is contractually guaranteed for the full term (2–10+ years).
• No annual resets—your credited rate is fixed for the entire period.
• Simpler and more predictable than traditional fixed annuities.
• Works best for savers who want certainty and don’t want to worry about annual rate changes.

Key takeaway: If you want guaranteed stability and predictability, a MYGA is usually the better fit. If you’re comfortable with potential rate resets after year one (with a minimum guarantee), a traditional fixed annuity may be a suitable option.

MYGA Alternatives: Fixed Index Annuities with Premium Bonuses

If you are a rate shopper looking to maximize your initial return, you might want a higher yield than a standard MYGA can offer. For savers willing to trade multi-year rate predictability for a massive first-year boost, a Fixed Index Annuity (FIA) with a Premium Bonus is a compelling alternative.

While FIAs are primarily known for earning interest based on stock market indexes (without the downside risk), they also include a declared fixed interest account that functions similarly to a traditional fixed annuity.

How the Bonus Strategy Works

When you open a bonus FIA and allocate your funds to the fixed account, your first-year yield is supercharged by an upfront cash deposit from the insurance company.

• The Upfront Bonus: Some carriers currently offer premium bonuses of 5% to 34% applied to your account value on day one.
• The Declared Fixed Rate: You then earn the carrier’s declared annual fixed rate (e.g., 3.00% to 4.50%) on your initial premium plus the bonus.

Market Value Adjustment (MVA)

A Market Value Adjustment (MVA) changes your cash value only if you take money out above the free-withdrawal amount during the surrender period. It reflects how interest rates have moved since you bought the annuity. If rates rise, the MVA can reduce your surrender value; if rates fall, it can increase it. Either way, your account will not drop below the contract’s minimum guaranteed value.

The MVA does not apply at maturity, to penalty-free withdrawals, RMDs from IRA annuities, or death benefits. It often works in conjunction with surrender charges, meaning both may apply in the event of an early withdrawal. Because you share some rate risk on exits, MVA contracts usually credit higher rates than no-MVA versions.

If you plan to hold the contract to maturity, the MVA won’t affect you and may help you earn more. But if you expect to need large early withdrawals, a no-MVA version may be safer. The right choice depends on your liquidity needs and the level of flexibility you require.

Why it exists: The MVA serves as an additional layer of protection for both the insurance company and the annuity owner. When the insurer invests your premium, they typically buy long-term bonds. If you surrender early while rates are higher, those bonds could be worth less. The MVA ensures the insurer isn’t forced to bear the entire loss, helping keep the company financially stable. That stability, in turn, protects all policyholders by making sure the insurer can continue to meet its obligations.

Fixed Annuity Liquidity Options

Here’s every way a fixed annuity can provide liquidity:

• Free withdrawal provision: Most allow up to 10% of the account value to be withdrawn annually without penalty.
• Systematic withdrawals: Set up recurring monthly, quarterly, or annual withdrawals within the penalty-free limits.
• Return of interest only: Some contracts allow you to withdraw just the interest earned each year without penalty.
• Nursing home waiver: Many annuities waive surrender charges if you’re confined to a nursing home.
• Terminal illness waiver: Some contracts waive charges if you’re diagnosed with a terminal illness.
• Required Minimum Distributions (RMDs): If purchased with qualified funds (e.g., IRA or 401(k) rollover), RMDs are always allowed without penalty.
• Annuitization: You can convert the contract into a guaranteed income stream at any time (though it’s irrevocable).
• After the surrender period: Once the term ends, the annuity is fully liquid—you can withdraw or transfer all funds without surrender charges.
• Death benefit liquidity: At death, the contract value is fully liquid to beneficiaries, who can take a lump sum or other payout options.
• 1035 exchange: You can transfer the value to another annuity (with better features or rates) without triggering taxes.

Laddering That Works

Laddering means splitting your money across annuities with different terms so one matures regularly. This strategy provides you with periodic access to funds, reducing the risk of being locked into a single rate.

Examples:

• 3-Rung Ladder: Use 3-, 4-, and 5-year MYGAs. Each year after the first maturity, another contract comes due, keeping money rolling at current rates.
• 5-Rung Ladder: Spanning 2–6 years, with one level maturing every year for five years.

Pros: Provides steady liquidity, reduces reinvestment risk, and lets you capture higher rates if they rise.
Cons: More contracts to manage and smaller balances in each.

Best for retirees seeking predictable annual access and savers who prefer not to time the rate cycle. Not ideal for small balances or anyone needing large, frequent withdrawals.

Our Professional Opinion: Interest rates are expected to decrease gradually over the next 1 to 2 years. This means your renewal interest rate is likely to be lower than today’s rates. If liquidity is your concern, laddering is a viable strategy. If interest rates for income are your concern, purchasing a long-term MYGA is the best strategy to get the highest rates.

Suitability Snapshot: Who Should Buy—and Who Shouldn’t

• Best for: Savers who want principal protection, tax-deferred growth, and a defined timeline; retirees coordinating RMDs; CD shoppers comparing after-tax outcomes.
• Not for: People who need frequent large withdrawals, want equity-level growth, or expect a step-up in basis on nonqualified assets. Understand surrender schedules and potential MVA before buying.

Best and Worst Times to Buy a Fixed Annuity

Best Time

• When Interest Rates Are High or Rising: You lock in better rates for the entire contract term.
• When You Need Safe, Predictable Growth: If you want guaranteed accumulation without stock market risk, higher-rate environments provide the most value.
• When Rolling Over CDs or Bonds: Savers often get more competitive yields from annuities compared to CDs when market rates are favorable.

Worst Time

• When Interest Rates Are Historically Low: Locking in a low rate for multiple years can limit your growth. In these times, shorter-term MYGAs can give you flexibility to reinvest later at higher rates.
• When You Need Immediate Liquidity: Fixed annuities have surrender charges, making them less ideal if you need to access a significant portion of your money in the short term.

MYGA Rates vs. CD Rates

Multi-Year Guaranteed Annuities, specifically, almost always pay higher interest than bank CDs. The reason is simple: insurance companies can invest in longer-term, higher-yield bonds than banks typically use for CDs.

• Banks also incur higher overhead costs and FDIC insurance requirements, which limit the amount they can pass on to depositors.
• Insurers, backed by state guaranty associations rather than the FDIC, can operate with lower expenses and offer more competitive yields.

MYGA Rates vs. U.S. Treasuries and Savings Bonds

• Treasury Notes & Bonds: Treasuries are backed by the U.S. government and exempt from state income tax, but you’ll owe federal taxes on the interest every year. Their yields are usually lower than MYGAs of the same term, and if you sell before maturity, you risk market losses. MYGAs, on the other hand, lock in a multi-year rate, grow tax-deferred until withdrawal, and protect your principal from market fluctuations.
• Series EE Bonds: EE Bonds guarantee a fixed rate and promise to double in value after 20 years, but they cap how much you can buy each year and require holding for decades to realize the guarantee. MYGAs allow for much larger deposits, offer flexible terms ranging from 2 to 10 years or more, and still provide tax-deferred growth.

Takeaway: If you want higher rates, larger investment limits, tax deferral, and flexible term lengths, MYGAs are typically the stronger choice compared to Treasuries and EE Bonds.

Are Insurers Safer Than Banks or Credit Unions? The Record Since 2001

Banks fail more often than credit unions or life/health insurers. When life and health insurers encounter financial difficulties, policies are typically handled through state receivership, with guaranty association coverage available up to state-set limits (not FDIC).

• The FDIC reports that there were 570 U.S. bank failures from 2001 to 2025.
• The NCUA reports that 267 credit unions have experienced issues or closures since 2009.
• NOLGHA reports that 83 insurance companies have become insolvent since 1991; not all insolvent companies sold annuities, and many were health insurance companies. Eleven annuity companies were liquidated within the last 25 years.

Because insurers are regulated differently from banks, it is vital to work with a licensed annuity broker who can explain the state guaranty association limits in your specific state.

Broker’s Note: While the record since 2001 is strong, state guaranty associations have specific limits. I recommend staying within your state’s coverage limits per insurer.

How protection works (why insurer failures don’t mirror bank failures):

• When an insurer is taken into rehabilitation or liquidation, state guaranty associations step in to protect policyholders up to state-set limits and arrange transfers or continued coverage. This is a statutory process distinct from the FDIC’s bank resolution process. Coverage limits and triggers vary by state; always verify your state’s specific rules and regulations to ensure compliance.

Why Insurers Fail Less Often

Insurance companies that sell fixed annuities are required to:

• Maintain strict capital and reserve requirements.
• Undergo ongoing solvency reviews by state regulators.
• Contribute to state guaranty associations that protect policyholders if a company becomes impaired.

These safeguards make large-scale annuity company failures rare. In fact, none of the biggest annuity providers have failed in modern times.

What This Means for You

Fixed annuities are considered among the safest vehicles for retirement savings. While small carriers can run into trouble, your money with highly rated, established insurers is historically far more secure than deposits with banks or credit unions that regularly fail during economic downturns.

Single-Premium vs. Flexible-Premium Deferred Fixed Annuities

When funding a deferred fixed annuity, you can choose a single-premium or flexible-premium option.

• Single-Premium (SPDA): One lump-sum payment upfront. Offers higher rates and is ideal for rollovers, inheritances, or large savings deposits. You can’t add more money later.
• Flexible-Premium (FPDA): Allows multiple contributions over time, either scheduled or occasional. Best for gradual savers, but usually pays lower rates.
• Which to Choose: Use single-premium if you have a lump sum; choose flexible-premium if you want to build value over time with smaller deposits.

Buying Tips for Fixed Annuities

Here’s a list of practical tips when shopping for fixed-rate annuities:

• Compare multiple insurers: Rates vary widely between companies, even for the same term length. Always get quotes from several carriers.
• Check the insurer’s financial strength: Consider only companies rated A- or better by AM Best to ensure they can meet their long-term obligations.
• Match the term length to your goals: Shorter terms offer more flexibility, while longer terms usually provide higher rates.
• Look at liquidity features: Some fixed interest annuities (like MYGAs) allow penalty-free withdrawals each year. This helps with emergency access.
• Understand surrender schedules: Know how long your money is tied up and what penalties apply for early withdrawals.
• Consider renewal risk: At the end of a term, new rates could be lower. Compare how renewal options work.
• Evaluate payout options: Decide whether you want guaranteed income for life or simply growth until maturity.
• Check minimum guarantee provisions: Some contracts include minimum guaranteed interest rates to protect against low-rate environments.
• Compare against CDs and bonds: Deferred fixed annuities often pay more and offer tax-deferral advantages.
• Factor in taxes: Interest in annuities grows tax-deferred, unlike CDs or savings accounts. Withdrawals are taxed as ordinary income.
• Understand funding options: Deferred fixed annuities can be purchased with qualified money (such as a 401(k) rollover, an IRA rollover, or a 403(b)) or nonqualified savings.
• Ask about free withdrawal provisions: Many allow 10% annual withdrawals without penalty—useful for flexibility.
• Check state guaranty limits: Fixed annuities are protected by state guaranty associations (limits vary by state).
• Work with a broker, not directly with insurers: A broker compares multiple carriers to find the best rate and features.
• Review additional riders: Some fixed annuities offer optional riders for income, long-term care, or enhanced death benefits.

Tips for Locking in Fixed Annuity Rates Before They Fall

Here are tips for shopping for a fixed annuity when interest rates are high but starting to drop:

• Lock in rates quickly: Buy sooner rather than later to secure today’s higher rates before insurers adjust them downward.
• Consider longer terms: A 5–10 year fixed annuity (MYGA) helps preserve a high guaranteed rate for the entire term.
• Look for rate guarantees: Some contracts guarantee your credited rate for the whole term, not just the first year.
• Use laddering strategies: Split money across multiple annuities with different term lengths to balance locking in higher rates now with flexibility later.
• Compare insurer renewal history: Companies with strong renewal rate practices are more reliable when the environment shifts.
• Don’t chase short-term teaser rates: Some insurers offer high 1-year rates that drop sharply after renewal—longer-term guarantees may be safer.
• Check liquidity features: Ensure the contract offers annual penalty-free withdrawals in case you need funds while rates fluctuate.
• Evaluate the impact of inflation: High rates dropping may coincide with inflation cooling—balance fixed annuities with other inflation-hedging tools.
• Consider adding income riders: If you want long-term income protection, locking in during a high-rate environment helps maximize payout bases.
• Compare against alternatives: CDs, Treasuries, and bonds may also see falling yields; however, fixed annuities often remain competitive due to tax deferral.

Taxation of Deferred Fixed Annuities

Deferred fixed annuities grow on a tax-deferred basis, meaning you don’t owe taxes each year on the interest earned. Instead, taxes are due only when you withdraw money. This lets your account compound more efficiently compared to taxable savings accounts or CDs.

How It Works

• Nonqualified Deferred Fixed Annuities: Funded with after-tax dollars. Only the interest you earn is taxable upon withdrawal, while your original premium comes back tax-free.
• Qualified Deferred Fixed Annuities (IRA, 401(k) rollover, etc.): Funded with pre-tax dollars. All withdrawals are taxed as ordinary income because no taxes were paid upfront.
• Roth IRA Deferred Fixed Annuities: Funded with after-tax dollars. If the Roth is at least 5 years old and you’re over age 59½, withdrawals are generally tax-free.

Key Tax Rules

• Early Withdrawals: Withdrawing money before age 59½ typically triggers a 10% IRS penalty on taxable earnings, plus ordinary income tax.
• LIFO Taxation: For nonqualified contracts, the IRS applies “Last In, First Out” rules when taking penalty-free withdrawals or lifetime withdrawals from the income rider— taxable interest is withdrawn before your original principal.
• Exclusion Ratio: If you annuitize the contract, each payment may include a ratio of taxable earnings and tax-free return of premium.

Fixed Annuities Are RMD-Friendly

Fixed annuities fit well within retirement accounts because most insurers make Required Minimum Distributions (RMDs) easy to calculate. If your annuity is held in an IRA, the insurer can automatically calculate and distribute your annual RMD. Many contracts also waive surrender charges on RMD-required withdrawals, so you aren’t penalized for following IRS rules.

This makes fixed annuities a good choice for retirees who want guaranteed growth and income without worrying about missing deadlines or triggering unnecessary penalties. Just be sure to coordinate across all your IRAs, since the IRS requires you to meet your total RMD each year.

What Happens After a Fixed Annuity Term Ends

Here’s what happens to a fixed annuity after the term is up:

• Renewal at new rates: Many fixed annuities automatically renew into a new term at the insurer’s current renewal rate unless you take action.
• Convert to a shorter renewal period: Some contracts renew for a 1-year fixed period if you don’t choose another option.
• Withdraw the funds: You can cash out your annuity without surrender charges once the term is completed. Ordinary income tax will apply to the interest earned.
• Roll over to another annuity: You can transfer the funds into a new fixed annuity, often called a “1035 exchange,” to lock in a new rate while maintaining tax deferral.
• Move to another retirement account: If purchased with qualified funds (e.g., an IRA or 401(k)), you can roll it into another qualified account without incurring penalties.
• Start an income stream: You may annuitize the contract or add an income rider (if available) to begin guaranteed income payments.
• Leave it as is: If you take no action, the insurer may keep the funds in a holding account, earning a very low interest rate, until you decide to act.
• Passing to beneficiaries: If you pass away after the term is up, the contract value will be paid to your beneficiaries, either as a lump sum or through another payout option, as specified in the contract.

What Happens to a Fixed Annuity at Death

Here’s what happens to a fixed annuity at death:

• Beneficiaries receive the value: The remaining account value is paid to your named beneficiaries, usually as a lump sum.
• Avoids probate: Payments are made directly to beneficiaries, thereby bypassing the need for probate.
• Spousal continuation option: A surviving spouse can often continue the annuity contract in their own name, rather than taking a payout.
• Multiple payout options: Beneficiaries may choose from lump-sum, installment, or stretch distributions (if permitted by the insurer).
• Taxation of proceeds: For nonqualified annuities, the principal portion is not taxable again, but the interest is taxed as ordinary income. For qualified MYGAs, the entire withdrawal is taxable as ordinary income. Withdrawals from Roth IRA MYGAs are completely tax-free when requirements are met. IRS Publication 575 — Pension and Annuity Income
• No step-up in basis: Unlike inherited stocks or real estate, annuities don’t receive a step-up in cost basis at death.
• Impact of riders: If the contract includes an enhanced death benefit rider, the payout may exceed the account value.
• If no beneficiary is named: The death benefit is paid to the estate, which may trigger probate and taxes.

Application-to-Issue Timeline

Buying a fixed annuity is a simple process, but there are a few steps:

• Application & Suitability Review – You complete an application, and the insurer checks that the annuity fits your financial situation.
• Transfer of Funds – Money is transferred by check, wire, IRA rollover, or 1035 exchange. Rollovers and 1035s can take days or weeks, so timing matters.
• Rate Lock Applied – As long as funds arrive within the lock window, your chosen rate is guaranteed (and you may get the higher rate if the insurer raises it before funding).
• Contract Issued – Once funded, the policy is activated and delivered to you.
• Free-Look Period – You have a short window (varies by state) to review the contract and cancel without penalty if you change your mind.

Most buyers find the process straightforward, especially when a broker coordinates the paperwork and funding steps to make sure no deadlines are missed.

Looking for Lifetime Income Instead of Accumulation? The rates on this page are for fixed interest growth (MYGAs). If you are trying to find out how much monthly income an annuity will pay you for the rest of your life, click here to use our Lifetime Income Annuity Calculator and see today’s payout rates.

Compare Fixed Annuity Interest Rates Side-by-Side

Use our calculator to compare fixed annuity interest rates and see side-by-side how much more money you can earn compared to other guaranteed interest annuities.

Get a Deferred Fixed Annuity Interest Rate Comparison Today

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