Short-Term Fixed Annuity Rates for Secure, High-Yield Growth
A short-term fixed annuity, also known as a MYGA (Multi-Year Guaranteed Annuity), provides secure growth with terms ranging from 2 to 5 years. With a fixed interest rate, your investment grows tax-deferred. At the end of the term, you can “walk away” with your initial investment and the interest earned as a lump sum, making it an ideal choice for those seeking low-risk growth options.
Before choosing a term, review our fixed annuity rates across all terms to compare shorter and longer guarantee periods.
Compare Short-Term Annuity Rates
| Term | Highest Current MYGA Rates | Highest FIA Return Rates |
|---|---|---|
| 2 years | 5.25% — CL Life and Annuity, CL Sundance | 5.00% — Axonic Waypoint |
| 3 years | 6.05% — Wichita National, Security 3 | 12.26% — Midland Summity Focus 3 |
| 4 years | 5.90% — Oceanview, Harbourview 4 | 16.98% — GBU Life Asset Guard FIA |
| 5 years | 6.40% — Wichita National, Security 5 | 22.80% — Athene Accumulator 5 |
MYGA rates are guaranteed for the stated term. FIA figures are not guaranteed annual returns; actual interest depends on the contract’s index-crediting rules and performance. Rates and availability may change.
Reasons to Compare Short-Term Fixed Annuity Rates
Comparing rates helps ensure you receive the highest payouts with the best terms to maximize your returns. With The Annuity Expert, you have access to the largest selection of annuity products in the United States, allowing you to find affordable coverage, high interest rates, and the lowest cost. Whether you’re contributing over time, transferring funds, or rolling over from a retirement account, our advisors will guide you in selecting the right plan at no charge.
Compare Short-Term Fixed Index Annuities
The Annuity Expert has access to 124 short-term fixed index annuities with terms of 3, 4, and 5 years. These annuities combine the safety of a fixed product with the potential for higher returns linked to a market index, without risking your principal to market losses. Shorter terms allow clients to maintain flexibility while still benefiting from index-linked growth opportunities.
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Lock In Guaranteed Returns Without Long-Term Commitments
As an annuity broker, The Annuity Expert helps you compare the highest-paying short-term fixed annuity rates available from 50+ top-rated insurance companies. If you want a safe, predictable return but don’t want to tie up your money for a decade, a short-term fixed annuity (also called a MYGA—Multi-Year Guaranteed Annuity) is a powerful tool. We do the legwork. You get the best offer.
Why Choose a Short-Term Annuity?
Short-term MYGAs typically range from 2 to 5 years. They offer a guaranteed interest rate over the term—similar to a CD, but often with higher yields and tax deferral advantages.
Unlike long-term annuities that may lock you in for 7 to 10+ years, short-term MYGAs give you flexibility and liquidity in a shorter time frame. As a broker, we find you the best rates with the lowest surrender charges, highest carrier ratings, and most favorable terms.
When deciding between a short-term Multi-Year Guaranteed Annuity (MYGA) and a short-term Fixed Index Annuity (FIA), the choice often comes down to whether you value guaranteed rates or index-linked growth potential—or want to blend the benefits of both.
- Short-Term MYGA Advantages: A MYGA works like a CD but often pays a higher rate, locking in a fixed interest rate for the entire term (3–5 years in this case). There’s no market exposure—your earnings are predictable, making it an ideal choice for those who prioritize certainty and safety.
- Short-Term FIA Advantages: A short-term Fixed Index Annuity (FIA) provides contractually guaranteed principal protection while offering the potential to earn more than a MYGA by crediting interest based on the performance of a market index, such as the S&P 500. Although returns are limited by caps or participation rates, they can exceed fixed rates during strong market periods—all without exposing your principal to market losses. The shorter term also provides flexibility to step away from a volatile or underperforming market and re-enter when conditions improve, allowing you to adapt your strategy without a long-term commitment.
What We Do for You
✔ Compare 2-Year, 3-Year, 4-Year, and 5-Year MYGA rates
✔ Provide transparent side-by-side comparisons of carriers
✔ Identify companies with the strongest financial ratings
✔ Walk you through surrender charges and liquidity options
✔ Help you avoid annuities with hidden fees or restrictions
✔ Guide you on how to fund the annuity (qualified or non-qualified money)
Types of Funds Accepted
You can fund short-term fixed annuities with:
- IRA rollovers
- 401(k), 403(b), and TSP rollovers
- Non-qualified brokerage accounts or bank savings
- Inherited IRAs and Beneficiary IRAs
Whether you’re repositioning a CD, selling a home, or retiring early, we help you put idle cash to work—safely and tax-efficiently.
Pros and Cons of Short-Term MYGAs
✔ Pros:
- Guaranteed interest rate (no market risk)
- Higher returns than most CDs and bonds
- Tax-deferred growth
- No annual fees
- Wide range of funding options
✘ Cons:
- Early withdrawal penalties if you break the contract
- No exposure to the stock market upside
- Not liquid beyond limited penalty-free withdrawal provisions
Who Should Consider Short-Term Fixed Annuities?
This solution works best if you:
- Want a higher yield than a bank CD
- You are waiting for interest rates to rise further
- Need a safe place for a portion of retirement funds
- Have money sitting in a low-interest savings or money market account
- Are retired or near retirement and want to preserve principal
Who Shouldn’t Use a MYGA?
Short-term fixed annuities may not be right if you:
- Need full access to your funds within 1–2 years
- Want market growth and are willing to accept risk
- Have high-interest debt you need to pay off first
- Don’t have emergency savings established
Step-by-Step Application Process
- Choose Your Term: Select a short-term period of 2 to 5 years based on your financial goals.
- Compare Rates: Use our comparison tool to find the top short-term fixed annuity rates and plans tailored to your needs.
- Submit Your Application: Complete a simple application online with The Annuity Expert’s help.
- Fund Your Annuity: Rollover, transfer, or contribute to your annuity account securely.
- Watch Your Investment Grow: Enjoy tax-deferred growth until the end of your term.
- Receive Your Lump Sum: At the end of the term, receive your initial investment plus interest in a single payout.
Book a Call Today
Our service is free, with no obligation to buy. Whether shopping online or consulting our advisors, you’ll find the best options to fit your retirement goals. With MYGA plans, you get the security of fixed rates and the flexibility to withdraw your investment without penalty after the term. Book a call today for personalized assistance in finding the most affordable and highest-yield annuity options.