Best Fixed Annuity Rates in 2026: Compare Current Offers

Fixed annuity rates in 2026 are near their highest levels in over a decade, making this one of the most attractive environments for locking in guaranteed returns. Multi-year guaranteed annuities (MYGAs) are now offering rates that significantly outpace certificates of deposit, money market accounts, and even some bond yields. For retirees and pre-retirees looking for safe, predictable growth with tax-deferred compounding, the current rate landscape is worth serious attention.

This article breaks down the best fixed annuity rates available right now, compares top carriers, explains how rates are determined, and provides strategies for shopping for the best deal. All rates cited are approximate and subject to change. This content is for educational purposes only and does not constitute financial or investment advice. Consult a qualified financial advisor before purchasing any annuity.

Current MYGA Rates by Term Length (February 2026)

Multi-year guaranteed annuities (MYGAs) work like CDs issued by insurance companies. You deposit a lump sum, the insurer guarantees a fixed interest rate for a set number of years, and your money grows tax-deferred until withdrawal. Here are the approximate top-of-market MYGA rates as of mid-February 2026 based on a $100,000 premium from highly rated carriers.

3-year MYGA rates: 5.60 to 5.90 percent. Three-year terms offer the shortest commitment and lowest surrender risk. They are ideal for investors who want a higher rate than a CD but are uncertain about locking money away for a longer period. The top 3-year rates come from carriers like Athene and Global Atlantic.

5-year MYGA rates: 6.00 to 6.30 percent. The five-year term is the most popular MYGA duration. It balances a competitive rate with a manageable commitment period. Top carriers at this term include MassMutual, Athene, and American Equity. A $100,000 deposit at 6.15 percent compounding annually would grow to approximately $134,870 after five years, all tax-deferred.

7-year MYGA rates: 6.50 to 6.90 percent. Seven-year terms offer a meaningful step up in rate for those willing to commit for a longer period. New York Life and Global Atlantic are among the carriers offering competitive 7-year rates. A $100,000 deposit at 6.70 percent would grow to approximately $157,100 over seven years.

10-year MYGA rates: 7.00 to 7.65 percent. The longest commonly available MYGA terms offer the highest rates. At 7.30 percent, a $100,000 deposit would grow to approximately $202,600 over ten years, more than doubling your money with zero market risk. Carriers like Athene, American Equity, and Global Atlantic lead at this term length. The trade-off is a longer surrender period, so this is best suited for money you genuinely will not need for a decade.

Rates vary by state, premium amount, and the specific product. Minimum premiums for the best rates typically start at $10,000 to $25,000, with some carriers offering higher rates for premiums of $100,000 or more. Rates can change weekly, so it is important to verify current rates with a licensed agent at the time you are ready to purchase.

Top Carriers for Fixed Annuity Rates in 2026

Not all insurance companies offer the same rates, and the highest rate is not always the best choice. Financial strength, surrender terms, free withdrawal provisions, and customer service all matter. Here are five of the most competitive carriers for fixed annuity rates in 2026.

• MassMutual. A.M. Best rating: A++ (Superior). MassMutual is one of the oldest and most financially strong mutual life insurance companies in the United States. Their MYGA products consistently rank among the top for 5-year and 7-year terms. As a mutual company, MassMutual is owned by its policyholders rather than shareholders, which many consumers find reassuring. Their current 5-year MYGA rate is approximately 6.10 to 6.25 percent.
• New York Life. A.M. Best rating: A++ (Superior). New York Life is the largest mutual life insurance company in the United States and has been in business since 1845. Their fixed annuity rates are competitive, especially at 7-year and 10-year terms. They are known for exceptional financial stability and a conservative investment philosophy. Their current 7-year MYGA rate is approximately 6.60 to 6.80 percent.
• Athene. A.M. Best rating: A (Excellent). Athene has become one of the largest fixed annuity writers in the country, frequently topping rate tables across multiple term lengths. Backed by Apollo Global Management, Athene is known for aggressive pricing. Their rates often lead the market, particularly for 3-year and 10-year terms. Current top rates range from approximately 5.85 percent for 3-year terms to 7.50 percent or more for 10-year terms.
• Global Atlantic. A.M. Best rating: A (Excellent). Global Atlantic, now a subsidiary of KKR, offers highly competitive MYGA rates across all term lengths. They are a major player in the retirement and life insurance markets and have grown rapidly in recent years. Their ForeSight MYGA product is frequently among the highest-rate offerings, particularly for 5-year and 7-year terms.
• American Equity. A.M. Best rating: A- (Excellent). American Equity Investment Life Insurance Company, now part of Brookfield Reinsurance, is one of the largest writers of fixed index annuities and also offers competitive MYGA rates. They are known for strong rates at longer terms and relatively favorable surrender schedules. Their 10-year MYGA rates are frequently among the market leaders.

When comparing carriers, do not choose solely based on rate. A carrier with an A.M. Best rating of A++ offering 6.00 percent may be a better choice than a carrier rated B++ offering 6.50 percent. The additional 50 basis points are not worth the added credit risk. Look for carriers rated A- or higher by A.M. Best, verify the rate is guaranteed for the full term, and review the surrender schedule and free withdrawal provisions before committing.

How Fixed Annuity Rates Are Set

Understanding how insurance companies set fixed annuity rates helps you make sense of why rates move the way they do and when they might change. Fixed annuity rates are primarily driven by three factors: the yields on the bonds the insurer invests in, the insurer's operating expenses and profit margin, and competitive pressure from other insurers.

When you deposit money into a fixed annuity, the insurance company invests your premium primarily in a portfolio of investment-grade corporate bonds, government bonds, and mortgage-backed securities. The yield the insurer earns on this portfolio determines the upper limit of what they can pay you. The insurer then subtracts a spread, typically 1.00 to 2.00 percentage points, to cover their operating costs, reserves, and profit. What remains is your credited rate.

This is why fixed annuity rates closely track the yield on U.S. Treasury bonds and investment-grade corporate bonds. When Treasury yields rise, as they have significantly since 2022, annuity rates rise with them. When the Federal Reserve cuts interest rates and bond yields fall, annuity rates eventually follow. The correlation is not instantaneous because insurers hold portfolios of bonds purchased at different times, but over periods of months, annuity rates track bond yields closely.

As of February 2026, the 10-year U.S. Treasury yield sits around 4.50 to 4.75 percent, and investment-grade corporate bond yields are higher, in the 5.50 to 6.50 percent range. This gives insurers the investment income to support the 6 to 7+ percent MYGA rates currently available. If Treasury yields were to drop back to 2 percent, as they were in 2020 and 2021, annuity rates would decline substantially.

Fixed Annuity Rates vs. CD Rates: A Direct Comparison

One of the most common comparisons people make is between fixed annuities and certificates of deposit. Both are conservative, fixed-rate products. Both guarantee your principal and a stated interest rate. But the differences in rate, tax treatment, and insurance protection are significant. For a detailed side-by-side analysis, see our guide on fixed annuities vs. CDs.

Here is how the numbers compare right now for a $100,000 deposit over five years.

• 5-year CD at 4.25 percent: After five years, your $100,000 grows to approximately $123,100 before taxes. If you are in the 22 percent federal tax bracket, you owe taxes on the $23,100 in interest each year as it is earned, reducing your effective after-tax return. Net after-tax accumulation is approximately $118,020.
• 5-year MYGA at 6.15 percent: After five years, your $100,000 grows to approximately $134,870. Because the annuity is tax-deferred, you owe no taxes until you withdraw. If you withdraw the full amount in the same 22 percent bracket, your after-tax accumulation is approximately $127,200. That is roughly $9,180 more than the CD, a meaningful difference from a single rate advantage plus tax deferral.

The MYGA advantage widens further if you hold the annuity for a longer period and continue deferring taxes, or if you are in a higher tax bracket during your earning years and a lower bracket in retirement when you withdraw. However, CDs offer FDIC insurance up to $250,000 per depositor per bank, which is a stronger guarantee than the state guaranty association coverage that protects annuities. For people who prioritize federal deposit insurance and short-term liquidity above all else, CDs remain the appropriate choice.

MYGA vs. SPIA vs. FIA: Understanding Rate Differences

Not all fixed annuities are the same, and the "rate" means different things depending on the product type. Understanding these distinctions is essential for comparing offers accurately. For a broader overview of annuity types, see our comparison of fixed, variable, and indexed annuities.

• MYGA (Multi-Year Guaranteed Annuity). This is the simplest type. You get a fixed, guaranteed interest rate for a set number of years, similar to a CD. The rate is locked in at purchase and does not change. Current top rates: 5.60 to 7.65 percent depending on term length. Best for: people who want predictable, guaranteed growth with no market exposure.
• SPIA (Single Premium Immediate Annuity). A SPIA converts a lump sum into a stream of guaranteed income payments that begin immediately (usually within 30 days). The "rate" on a SPIA is not stated as an interest rate but is expressed as a payout rate, which is the annual income divided by the premium. For example, a 65-year-old depositing $100,000 might receive approximately $590 to $620 per month for life, which equates to a payout rate of roughly 7.1 to 7.4 percent. However, part of each payment is a return of your own principal, not just interest. Best for: retirees who want guaranteed lifetime income starting now.
• FIA (Fixed Index Annuity). FIAs do not have a single stated rate. Instead, your return is linked to the performance of a market index (such as the S&P 500) subject to caps, participation rates, and spreads set by the insurer. In a good market year, you might earn 5 to 10 percent. In a down market year, you earn zero (but do not lose principal). The effective long-term return on FIAs has historically averaged around 3 to 6 percent, though this varies widely. Current cap rates on popular S&P 500 annual point-to-point strategies are approximately 9 to 12 percent. Best for: people who want some market-linked upside with downside protection.

There is also a newer category called a registered index-linked annuity (RILA), sometimes called a buffered annuity, which offers higher potential returns than a FIA in exchange for accepting some downside risk (typically a 10 to 20 percent buffer). RILAs are gaining popularity but are a fundamentally different risk profile from traditional fixed annuities.

The Tax-Deferred Advantage of Fixed Annuities

One of the most significant advantages of fixed annuities over CDs, bonds, and savings accounts is tax deferral. With a CD or bond, you owe federal and state income tax on the interest earned each year, even if you do not withdraw it. With a fixed annuity, you owe no tax on the growth until you take a distribution. For a detailed explanation of annuity taxation, see our guide on how annuities are taxed.

This tax deferral creates a compounding advantage. When interest is not siphoned off by taxes each year, the full amount stays invested and earns interest on interest. Over 10 or 20 years, this can result in significantly more accumulated wealth compared to a taxable account earning the same rate. The benefit is largest for people in higher tax brackets during their accumulation years who expect to be in a lower bracket when they withdraw in retirement.

Consider a practical example. If you place $200,000 in a 10-year MYGA at 7.00 percent, it grows to approximately $393,400. In a taxable account at the same rate in the 24 percent bracket, annual taxes on the interest reduce your effective compounding rate, and you would accumulate approximately $357,500 after 10 years. That is a difference of roughly $35,900, entirely attributable to the tax-deferral benefit. Keep in mind that you will eventually owe taxes when you withdraw from the annuity, but the extra years of compounding on the tax-deferred amount often more than offset the deferred tax bill, especially if you withdraw gradually in retirement at a lower marginal rate.

Important: if you are purchasing a MYGA inside an IRA or 401(k), the money is already tax-deferred by the retirement account. Adding an annuity inside a tax-deferred account does not provide an additional tax benefit. The annuity would only make sense inside a retirement account if you value the guaranteed rate and principal protection, not for the tax deferral.

How to Shop for the Best Fixed Annuity Rates

Shopping for fixed annuity rates is different from shopping for a CD at your local bank. Annuity rates are not broadly advertised, they vary by state and premium size, and they change frequently. Here is how to find the best rates.

• Work with an independent agent. Captive agents who work for a single company can only show you that company's products. An independent agent who is appointed with multiple carriers can compare rates from dozens of insurers and find the best deal for your specific situation, state, and premium amount. This is the single most effective way to find the highest rates.
• Compare across multiple term lengths. Do not assume the longest term is always the best value. Sometimes the rate difference between a 5-year and a 10-year MYGA is not large enough to justify the additional years of illiquidity. Evaluate the incremental rate pickup for each additional year of commitment and decide if it is worthwhile.
• Check the carrier's financial strength. Always verify the issuing carrier's A.M. Best rating before purchasing. Stick with carriers rated A- (Excellent) or above. The highest-rate offers sometimes come from lower-rated carriers, and the extra yield may not be worth the additional credit risk. Your annuity is only as strong as the company that backs it.
• Understand the surrender schedule. Review the surrender charge schedule carefully. Some products have declining surrender charges that start at 10 percent and decrease by one percent per year. Others have more favorable schedules. Also confirm the annual free withdrawal provision, most contracts allow penalty-free withdrawal of up to 10 percent of the accumulated value per year.
• Verify the rate is for the full term. Some traditional fixed annuities advertise a high first-year rate but then adjust the rate annually. With a MYGA, the rate is guaranteed for the entire term. Make sure you are comparing MYGAs to MYGAs and not accidentally comparing a MYGA rate to a first-year teaser rate on a traditional fixed annuity.
• Ask about premium bonuses with caution. Some carriers offer a first-year premium bonus of 1 to 5 percent to attract deposits. While these can be legitimate, the bonus is often offset by a longer surrender period, lower ongoing rate, or higher fees. Read the fine print and calculate the total return over the full term, not just the first-year return with the bonus included.

Rate Lock Strategies in the Current Environment

With rates at attractive levels but the future direction uncertain, many financial advisors recommend strategies that balance locking in today's rates with maintaining flexibility for future rate changes.

• MYGA laddering. Similar to a CD ladder, a MYGA ladder involves splitting your total investment across multiple MYGAs with staggered maturity dates. For example, if you have $300,000 to invest, you might put $100,000 into a 3-year MYGA, $100,000 into a 5-year MYGA, and $100,000 into a 7-year MYGA. As each term matures, you reinvest at whatever rate is available, giving you regular access to portions of your money and exposure to different rate environments.
• Barbell strategy. Place a portion in a short-term MYGA (3 years) and a portion in a long-term MYGA (10 years). The short-term portion gives you liquidity and the ability to reinvest at potentially higher rates if they rise. The long-term portion locks in today's highest available rate for a decade. This balances rate maximization with flexibility.
• Dollar-cost averaging into annuities. Rather than investing your entire amount at once, consider funding MYGAs in installments over the next 6 to 12 months. This reduces the risk of locking in all your money right before a rate increase, while still capturing current rates for the portions you invest now.
• Multi-carrier diversification. Spread your annuity purchases across two or three different carriers. This diversifies your credit risk and also ensures that each deposit stays within your state's guaranty association coverage limits. For example, if your state covers $250,000 per carrier, placing $200,000 with three different carriers keeps you well within protection limits.

Are Current Fixed Annuity Rates Worth Locking In?

The question of whether to act now or wait is one every prospective annuity buyer faces. As of February 2026, there are strong arguments for locking in current rates. For a broader analysis of when annuities make sense and when they do not, read our article on whether annuities are worth it.

Fixed annuity rates are at their highest level since the early 2010s. The 10-year Treasury yield, which is the primary driver of annuity rates, remains elevated due to persistent inflationary pressures and Federal Reserve monetary policy. While some market analysts anticipate eventual rate cuts as inflation moderates, the timing and magnitude of any cuts are uncertain. If rates do decline, today's MYGA rates will look very attractive in hindsight.

On the other hand, if inflation remains elevated or worsens, rates could go even higher. No one can predict the future with certainty. The practical takeaway is this: if a 6 to 7 percent guaranteed return on a portion of your conservative allocation meets your financial goals, current rates are objectively attractive compared to the last 15 years. Waiting for a potentially higher rate means forgoing guaranteed earnings in the meantime. A laddering strategy allows you to act now while keeping some flexibility.

LIMRA data shows that total annuity sales reached record levels in recent years, with MYGA sales in particular surging as consumers responded to higher rates. This trend reflects widespread recognition that the current rate environment is favorable for fixed annuity buyers.

The Bottom Line

The best fixed annuity rates in 2026 offer a compelling opportunity for conservative investors. MYGA rates of 5.60 to 7.65 percent across various term lengths significantly exceed CD rates, and the tax-deferred compounding amplifies the advantage over time. Top carriers like MassMutual, New York Life, Athene, Global Atlantic, and American Equity are competing aggressively for deposits, which benefits consumers.

To get the best rate, work with an independent agent who can compare offers from multiple carriers, verify the carrier's financial strength rating, review the surrender schedule and free withdrawal provisions, and consider a laddering strategy to balance rate maximization with flexibility. Do not chase the absolute highest rate at the expense of carrier quality or appropriate term length for your needs.

Fixed annuity rates are driven by bond yields and can change at any time. If today's rates align with your financial goals and risk tolerance, there is a strong case for locking in at least a portion of your conservative allocation now rather than waiting for rates that may or may not materialize. Consult a qualified financial advisor to determine how a fixed annuity fits into your overall retirement plan and to find the best current rates for your specific situation.