What a 5-Year Annuity Really Means
A 5-year annuity is an insurance contract with a five-year surrender period. During those five years, your money is either growing, paying income, or preparing for future income, depending on the annuity type.
Most 5-year annuity shopping comes down to three options:
- MYGA for a guaranteed rate over the full term
- Fixed indexed annuity (FIA) for index-linked growth potential with no market-loss risk
- Period certain annuity for a guaranteed income stream that lasts exactly five years, then stops
Why do people choose five years?
- Often stronger contractual value than 3-4 year terms
- Enough time to benefit from compounding or index resets
- Aligns well with retirement, Social Security timing, or income bridges
- Still flexible enough to reposition later
Compare The Highest 5-Year MYGA Annuity Rates.
5-year MYGA annuities provide a stable way to grow your money over time. During the five-year term, interest accumulates tax-deferred, and when the annuity matures, you can walk away with your initial investment plus the interest earned as a lump sum. The Annuity Expert connects you to the highest payout options in the market, making it easy to secure affordable coverage with the best interest rates available.
While 5-year MYGAs offer excellent mid-term stability, we recommend comparing them against the best 5-year fixed annuity rates for all terms to see if a slightly longer or shorter commitment yields a better return for October 2026.
| Insurance Company | Product Name | Guaranteed APY | A.M Best Rating | Annual Liquidity |
|---|---|---|---|---|
| Wichita National | Security 5 | 6.4% | B+ | 0% |
| Aspida | Advisory MYGA | 6.35% | A- | 10% |
5-Year Period Certain Annuity Rates
How It Works: A 5-year period certain annuity pays income for exactly five years. It does not provide a lifetime income. Payments are contractually guaranteed for the fixed period and then stop. A 5-year term pays roughly 21.50% payout for the five-year term, then stops. If an annuitant dies before the term, the beneficiaries will receive the remaining payouts.
Example: A $100,000 period certain annuity would pay roughly $21,503 annually for five years.
| Premium Deposit | Annual Payout | Monthly Payout | Total 5-Year Payout |
| $100,000 | $21,503 | $1,791.92 | $107,515 |
| $250,000 | $53,757 | $4,479.75 | $268,785 |
| $500,000 | $107,515 | $8,959.58 | $537,575 |
| $1,000,000 | $215,030 | $17,919.16 | $1,075,150 |
Request a custom quote below. Rates change weekly.
5-Year Fixed Indexed Annuity (FIA) Rates
How it works: A 5-year FIA earns interest linked to the performance of an underlying market index (such as the S&P 500 or specialized volatility-controlled indexes). These contracts are built for accumulation-focused savers who want a crack at higher equity returns while maintaining an absolute contract floor of 0%, meaning you take zero market-loss hits in down years.
The figures below represent top-performing historical index allocations. Note: These are back-tested, historical illustrative maximums based on current participation rates—they are not a flat, contractually guaranteed annual interest rate.
| Insurer and Contract | 10-Year Historical Illustrated Return (High-End) |
|---|---|
| Athene Accumulator 5 | 22.38% |
| Eagle Life Select Focus 5 | 21.01% |
Why Use a Broker to Compare 5-Year Fixed Annuity Rates?
A 5-year fixed annuity (also known as a 5-year MYGA) offers guaranteed growth with zero market risk—but rates and terms vary widely across companies. That’s where we come in.
As an annuity broker, The Annuity Expert shops over 100+ insurers to find the best 5-year annuity rates for your specific needs. We don’t work for the insurance companies—we work for you.
We’ll compare 5-year fixed annuity rates side-by-side and walk you through the differences—at no cost to you.
What Type of Funds Can Be Used
We’ll help you fund the annuity with:
- ✔ Non-qualified money (checking, savings, CDs, brokerage)
- ✔ IRA rollovers (Traditional, SEP, SIMPLE, Roth)
- ✔ 401(k), 403(b), TSP rollovers (from former employers)
- ✔ Inherited IRAs (for non-spousal beneficiaries, restrictions apply)
You’ll get help transferring funds tax-free and penalty-free when done properly.
Who Needs a 5-Year Annuity?
✔ You Need It If:
- People who want predictable growth without market-loss risk
- Savers building a short-term “rate ladder” (staggering 2-, 3-, 4-, 5-year terms)
- Retirees who want a safe bucket for near-term spending (instead of riding the market)
- Anyone comparing options against CDs, money markets, or Treasuries—especially if tax-deferral helps
✘ You Don’t Need It If:
- Anyone who needs full access to the money within the next five years
- Investors who want uncapped market upside
- People who need strong inflation-hedging over longer time horizons (a 5-year window may be too short)
How Our Application Process Works
- Explore Options: Shop the largest selection of annuity products in the United States with The Annuity Expert.
- Request a Comparison: Start with a no-obligation comparison to see rates from top providers.
- Submit Your Application: Complete your application online or over the phone with one of our advisors.
- Transfer or Rollover Funds: If applicable, transfer or roll over funds from your retirement accounts seamlessly.
- Secure Your Annuity: Lock in your rate, and let your interest grow tax-deferred over the five-year term.
Book a Call Today
Our team of advisors is here to help you find the right 5-year fixed annuity tailored to your goals. Contact us to compare, apply, and secure the best rates—our service is free, and there’s no obligation. Call now and get access to affordable, top-rated options with The Annuity Expert.
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Frequently Asked Questions
What happens after the 5-year annuity term is up?
After year five, surrender charges usually drop to zero, and you regain full access to your money. At that point, you can withdraw funds, exchange into a new annuity using a tax-deferred 1035 exchange (for non-qualified money), renew the contract, or pivot into an income-focused strategy if the annuity allows it. Ignoring this decision often results in lower renewal terms.
Do I have to take my money out after 5 years?
No. A 5-year term is a decision point, not an expiration date. You can keep the annuity in force, reposition into another annuity, ladder into multiple terms, or transition toward income depending on interest rates and your financial goals.
What happens to a 5-year MYGA when it matures?
Most 5-year MYGAs roll into a renewal interest rate set by the insurance company. These renewal rates are frequently less attractive than newly issued MYGA rates. Many investors choose to exchange into a new MYGA, move into a fixed indexed annuity, or use the funds for income planning.
What happens to a 5-year fixed indexed annuity after the term ends?
A 5-year FIA typically continues with new index crediting terms. You may keep the contract, move the money into another FIA or MYGA, or activate a Guaranteed Lifetime Withdrawal Benefit (GLWB) if income is now needed and the contract allows it. Five years is often used as a stepping stone toward longer-term retirement income planning.
What happens to a 5-year period certain annuity after payments end?
Once the five years of guaranteed payments are completed, the contract ends. No additional payments or value remain. This option should only be used when income is needed for a very specific, short-term purpose.
Are taxes owed when the 5-year term ends?
No. Taxes are not triggered just because the five-year period ends. Taxes apply only when money is withdrawn. For non-qualified annuities, only the earnings are taxable. Qualified annuities follow standard IRA or retirement account tax rules.
Can I move a 5-year annuity without paying taxes?
Yes, in many cases. Non-qualified annuities can often be moved using a 1035 exchange, allowing you to transfer value into a new annuity without triggering taxes. Qualified annuities can be rolled over like other retirement assets.
Why do people choose 5-year annuities instead of longer terms?
A 5-year annuity offers flexibility. It allows investors to lock in competitive rates or protected growth without committing for too long. This shorter term is popular in uncertain interest rate environments or for people who expect to need access to funds sooner.
Who should choose a 5-year annuity instead of a 6- or 7-year option?
We would choose five years when that matches a planned expense or the point when you want your options open again. The extra rate on a longer contract must justify the extra commitment. Do not buy seven years of restrictions for money you expect to need in five.