A fixed annuity guarantees a set interest rate for a defined term — typically 3, 5, or 10 years. Unlike variable annuities, your principal cannot decrease. This calculator shows future value, interest earned, effective APY, and a side-by-side rate comparison so you can see the exact impact of shopping for even a 0.5% higher rate.
Last updated May 2026 · State guaranty associations cover up to $250K per insurer — verify at NAIC.org
Fixed Annuity Growth EstimatorRate Comparison Included
$100,000
5.25%
Future Value
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Interest Earned
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Effective APY
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PrincipalInterest Earned
Rate Comparison — Same Principal & Term
Your selected rate is highlighted. See how much more a higher rate earns.
Rate
Future Value
Interest Earned
vs. 4.0% Rate
4.0–6.5%
MYGA 5-year rates available (2026)
$14K
Extra interest on $100K over 10 yrs for every 1% rate gap
$250K
State guaranty protection per insurer
The Real Cost of Not Shopping Rates
On a $100,000 principal over 5 years, the difference between a 4.5% and 5.5% fixed annuity is approximately $5,800 in earned interest. Over 10 years, the same 1% gap grows to roughly $14,000. Comparing rates from multiple A-rated insurers before signing is one of the highest-ROI actions for a prospective annuity buyer.
MYGA Rates by Term Length (2026)
Multi-year guaranteed annuity rates vary by contract length. Longer terms generally — but not always — offer higher rates as compensation for locking up capital longer.
Term
Typical Rate Range
Best Use Case
Surrender Exposure
3-Year MYGA
4.0%–5.5%
Short-term certainty; rollover soon
Low
5-Year MYGA
4.5%–6.0%
Balance of rate and flexibility
Moderate
7-Year MYGA
4.75%–6.25%
Mid-retirement accumulation
Moderate-High
10-Year MYGA
5.0%–6.5%
Long-term guaranteed base
High
Understanding Surrender Charges
Most MYGAs impose a surrender charge if you withdraw more than 10% of the account value per year during the surrender period. Charges typically start at 7–9% in year one and decline to zero by the end of the term.
Typical 5-Year MYGA Surrender Schedule
Year 1
8%
Year 2
6%
Year 3
4%
Year 4
2%
Year 5+
0%
Most contracts allow a free 10%/year withdrawal without penalty. Charges apply to amounts exceeding this. Always read the full contract before signing.
Who Should Use a Fixed Annuity?
Fixed annuities are best for conservative investors who want a predictable return without market risk. They're often compared to bank CDs but typically offer higher rates because your money is held by an insurance company (not FDIC-insured, but covered by state guaranty associations up to $250,000). The typical buyer is someone in their 50s or 60s moving money from equities into guaranteed income-generating assets.
Fixed Annuity vs. CD vs. Treasury: 2026 Comparison
Product
Typical 5-yr Rate
Tax Treatment
Principal Guarantee
Liquidity
Fixed Annuity (MYGA)
5.0–6.5%
Tax-deferred
State guaranty assoc.
10% free/yr; surrender charge
Bank CD
4.0–5.5%
Taxed annually
FDIC up to $250K
Early withdrawal penalty
5-yr Treasury
4.2–4.8%
Federal tax only
Full U.S. govt backing
Sellable on secondary market
Fixed Index Annuity
Varies (capped)
Tax-deferred
State guaranty assoc.
10% free/yr; surrender charge
Frequently Asked Questions
What is a fixed annuity rate in 2026?
Fixed annuity rates in 2026 range from approximately 4.0% to 6.5% depending on the term and insurer. Multi-year guaranteed annuities (MYGAs) with 5-year terms from A-rated insurers have been offering rates in the 5–6% range — among the highest in over a decade. Shorter 3-year terms often offer slightly lower rates. Always verify the insurer's AM Best rating (A or A+ recommended) before committing.
Is a fixed annuity safe?
Fixed annuities are among the safest financial products available. Your principal is guaranteed against loss, and the insurer is required by state regulators to hold reserves to cover their obligations. They are not FDIC-insured, but most states have guaranty associations protecting consumers up to $250,000 per insurer if the company becomes insolvent. For large purchases, consider splitting the premium between two A-rated insurers to stay within guaranty limits.
How does a fixed annuity differ from a CD?
Both offer a guaranteed rate for a fixed term, but with key differences: (1) CDs are FDIC-insured; fixed annuities use state guaranty associations. (2) Fixed annuities typically offer higher rates than CDs of the same term. (3) Annuities offer tax-deferred growth — no taxes until withdrawal, unlike CDs where interest is taxed annually as ordinary income. (4) Fixed annuities often have surrender charges if you exit early; CDs have early withdrawal penalties. See our annuity formula guide for a deeper comparison.
Can I add money to a fixed annuity?
Most multi-year guaranteed annuities (MYGAs) accept a single premium payment only — one lump sum deposit and no further contributions during the term. Some flexible premium annuities allow ongoing contributions but typically come with lower guaranteed rates. If you plan to contribute regularly, a deferred annuity structure may be more appropriate. See our deferred annuity calculator for multi-contribution scenarios.
What happens at the end of a fixed annuity term?
At the end of the guaranteed term, you typically have three options: (1) Renew at the new rate the insurer offers (rates may be lower), (2) Roll the balance into a new MYGA from a different insurer without tax consequences (a 1035 exchange), or (3) Annuitize the balance into a stream of income payments. Most contracts include a "free look" window at renewal — typically 30 days — during which you can move funds without penalty. Plan ahead: compare renewal rates to market rates 60–90 days before your term ends.