17 Year Fixed Annuity Rates | October 2021

By Scott Brooks, MBA, CFP® Editor
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Multiple-Year Guaranteed Annuities (MYGAs). There are no surprises, no fees, and they are 100% liquid at maturity.

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Last updated on Oct 20, 2021
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Disclosure We have done our best to show the best products on the market. This is not a list of every fixed annuity available. The rates and product information on this website might not be current. Rates are subject to change at any time.

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Stop: Over 30 Tips You Should Know Before Buying An Annuity. Plus, 5 Videos To Help You Decide If They Are Right For You.

  • Fixed annuities are for conservative investors who want safety and guarantees. MYGAs are straightforward. You make a deposit and earn a fixed rate of interest. You get your principal back at the end of the fixed term.
  • People who invest in MYGAs are also likely to own US treasuries, bonds, and bank CDs.
  • The application on this page is non-binding. You will have time to review the application before signing. You can also change your mind if you decide not to proceed.
  • CD owners like fixed annuities because they are similar in many ways. Read our full report on fixed annuities to get more information.
  • If your time horizon is 2 years or more, a fixed annuity can earn a higher guaranteed return than a bank CD. If it's less than 2 years, consider a bank CD, savings account, or money market.
  • Make sure to enter your state, rating preference, term, and investment amount in the filter above.
  • Need help using our website? Watch our video "How to use our website to find the best products."
  • Want to commit your money for a specific term? Use the "term" filter to sort for the best rates and products for that time period.
  • If you might need to take withdrawals, make sure to add the withdrawal filter to your search.
  • Don't forget to click on the details page to learn more about each product.  We reveal everything you need to know.
  • Watch our video "The definitive guide to fixed annuities" to learn more about fixed annuities.
  • Watch our video "How to avoid the biggest mistakes consumers make when buying an annuity."
  • Watch our video "The case against fixed annuities (MYGAs)"
  • Watch our video "How to apply for a fixed annuity online"

the facts of fixed annuities

Flexible
Contributions
Avoid
Probate
Competitive
Interest Rates
Tax-Deferred
Growth
Safety

Flexible contributions

Some fixed annuities allow for ‘flexible contributions’. This means you can add money now and add money later. This is different from ‘Single Premium’ annuities, which allow you to only add money once. Most MYGAs (multiple-year guaranteed annuities) are single premium. Fixed annuities that do NOT lock in the rate for the term are more likely to offer flexible contributions. We like MYGAs because there are no surprises after purchase.

Avoid Probate

In some states, probate can be time-consuming and expensive. Annuities pass by beneficiary designation, not probate. Your named beneficiary can access the funds quickly and easily. There is no need to hire an attorney or pay probate fees.

Competitive Interest Rates

Fixed annuities pay higher rates than bank CDs. It's essential to shop both if you want to maximize the highest returns. Fixed annuities offer competitive rates to bank CDs. Interest rates are often closer to long-term bonds than short-term money markets or CDs.

Tax-Deferred Growth

Fixed annuities grow tax-deferred. You don't have to pay income taxes on the interest while the money is growing inside the annuity. You only pay income taxes on the earnings when you withdraw money from your account. Your money grows faster than it would inside a cd because of the triple compounding of interest. This is because you earn interest on the money lost to taxes. This is especially helpful if you are in a higher tax bracket while the money is growing. Tax deferral also means that annuity earnings do not affect your social security benefits like CDs and bonds do. When your annuity matures you can renew your contract or transfer the annuity to another company via 1035 exchange to continue tax deferral.

Safety

Fixed annuities are some of the safest ways to save for retirement. Insurance companies do not loan out your money as banks do. Banks take $1 in deposits and make $10 in loans. It's when these loans go bad that banks get into trouble because of leverage.  Insurance companies don't do this with annuities.  Insurance companies are required by law to set aside money "reserves" to pay policy owners.

30 Fixed Annuity Tips
  • The products, rates, and features for MYGAs vary by state because the products are state-regulated. Select your state in the filter above to receive accurate information.
  • MYGAs offer higher interest rates than bank CDs. Interest is tax-deferred until withdrawal. The main negatives are the potential surrender charge and market value adjustment applied to early withdrawals. If you own the annuity to maturity neither apply.
  • Don't invest money you need to use for the product term. If you might need access, look for shorter terms, products with withdrawal options, and products without market value adjustments. You can do this in our filter above.
  • Annuities in an IRA are subject to the tax rules for an IRA, not a non-qualified/taxable annuity. The insurance company acts as your custodian for the IRA.
  • Look at the terms and consider where the sweet spot is for rates. (Ex. 3 yrs). This varies as rates change.  Some have told us shopping for MYGAs reminds them of CD shopping because they are looking for the best rate and term.
  • The fixed annuities on this page are MYGAs and NOT subject to renewal rates. Your rate is locked in for the entire term and there are no surprises after purchase.
  • Shop the market before buying. Use our database! This is important because many companies don’t have access to all the best rates or they don’t want to show you. Ex. Most banks only MYGAs from 3-7 companies. We offer 40+ because when companies compete you win.
  • Consider the rate, term, surrender charge, any MVA, and death benefit options before purchase. This site provides all of this information.
  • Fixed annuities avoid probate, so make sure to keep your beneficiaries up to date. If you get divorced and the ex is still on the contract, they get the money!
  • Consider an annuity ladder to diversify both the term of the annuity and the credit rating.  Ex. 2 yr (B+), 3 yr (A-), and 5 yr (A). Ladders also help in a rising rate environment.
  • Look for stable, highly rated companies. Consider their financial stability. Annuities are not FDIC insured. Consider investing in a few different companies to reduce risk. Also, keep your annuity assets below the state guarantee limit for your state.
  • Contact your state guarantee fund to verify the coverage limit. Ask for the limit for "cash surrender value" for your state. Also, ask if the guarantee is "per person" or "per company."  Ex. In Texas, there is a $250K guarantee per company. So you could invest $750K split $250K into 3 companies and be covered.  Some states limit the guarantee per person. Ex. $250K per person. Other states have a lifetime guarantee.
  • If you purchase a B+ provider or below, verify the company would be covered by the guarantee fund in your state.
  • MYGAs make a lot of sense if you don't want to buy more muni bonds and are looking for additional ways to defer taxes.
  • Don’t put too much money into annuities. Always keep some money liquid in case you need it. Surrender charges and market value adjustments do not apply if you own the annuity until maturity.
  • Insurance agents’ might not want to sell you MYGAs because they can earn 4X more by selling you index or variable annuities.
  • Any earnings withdrawn before 59 1/2 are assessed a 10% early withdrawal penalty in non-retirement accounts. When your MYGA contract matures, you can renew your annuity with the same company or do a 1035 exchange to another company to avoid the 10% penalty. This allows you to keep deferring your gains until age 59 1/2 where the penalty will go away.
  • If you are forced to take an RMD (required minimum distribution), find a company that allows for RMD distributions. Select "RMD" in the filer above to filter for MYGAs with RMDs available.
  • If you want to invest IRA money into a MYGA, make sure to perform a custodian to custodian transfer. This transfers the money from your existing company into the new one. It's not a 1035 exchange and does not count toward your 1 rollover per year. We will help you with the process.
  • The products pay the same rate regardless of which company you buy them. Commissions are paid to everyone who sells them and is disclosed in the product details. The rates are net of any commissions paid so you will receive what is promised.
  • Don't buy an annuity unless you know the terms of the contract. MYGAs are simple and transparent to understand once you know what to look for.
  • How are insurance companies able to beat CD rates? Sometimes they are able to invest in less liquid investments to earn a higher return. They are able to do this because there are MVAs and surrender charges in place to protect them.
  • It's impossible to hate both bank CDs and MYGAs at the same time. When people talk negatively about annuities they are normally referring to index or variable annuities. MYGAs, SPIA, and DIAs have almost all positive press because there are no surprises after purchase.
  • When your MYGA matures it's possible to transfer the balance via a 1035 change to a SPIA or DIA. Ex. If you are 55 you might buy a MYGA now for stable tax-deferred growth.  When the product matures post 59 1/2 you could annuitize the money with the existing company or transfer it to another.  Or,  you could take it out as it's liquid at maturity.
  • Make sure the funds are sent directly to the insurance company. When you apply with us, we will open your account electronically if the company allows it.  Then, you can wire the funds or write a check payable directly to the insurance company for your benefit. Make sure to address the check is mailed to is registered to the insurance company.
  • If using retirement money we will help with the transfer and update you along the way.
  • The lower-rated companies in our database typically pay the highest rates. In general, they also offer fewer withdrawals and less favorable options at death. They might not waive the MVA or surrender charge. If this is a concern, search for products that do not have MVA and have withdrawals available.
  • The higher-rated companies pay out the accumulated/full value at death. Also, they offer interest-only or 10% withdrawals per year. What's the catch? They pay lower rates.
  • Take advantage of our fixed annuity database. Do your research and then decide whom you want to do business with. Watch our videos in the section to get a deeper explanation of these and other tips.
  • You can apply for multiple companies with one online application. Just let us know how you want the money split up.  Ex. $100K in Company X and $100K in Company Y.
  • You will have access to the insurance companies customer service department after purchase. We are also here to help.
  • Have questions? Let us help you. Leave us a voice mail at (800)540-6109 and we will return your call. We will treat you with respect.
The Best Fixed Annuity Rates For Each Term
TERMINSURERAM BEST RATINGRATE (APY)
2 yrsSILACB+2.15%
3 yrsAmerican LifeB++2.40%
4 yrsOceanview LifeA-2.60%
5 yrsSentinel Security LifeB++3.15%
6 yrsAtlantic Coast LifeB++3.17%
7 yrsSentinel Security LifeB++3.20%
8 yrsOxford LifeA-2.85%
9 yrsLiberty Bankers LifeA-3.00%
10 yrsAtlantic Coast LifeB++3.25%
The Best Fixed Annuity Rates For Each AM Best Rating

Here are the best fixed annuity rates you can currently get from insurers at each A.M. Best rating level.

AM BEST RATINGINSURERTERMRATE (APY)
A++Reliance Standard Life7 yrs2.30%
A+Great American Life7 yrs2.39%
ARoyal Neighbors of America10 yrs2.75%
A-Oceanview Life10 yrs3.05%
B++Atlantic Coast Life10 yrs3.25%
B+SILAC5 yrs2.95%