Fixed annuity rates — specifically for Multi-Year Guaranteed Annuities (MYGAs) — have been highly competitive since 2023 as insurers have been able to invest premiums at elevated Treasury yields. A MYGA works like a CD: you deposit a lump sum, earn a guaranteed rate for a fixed term, and can withdraw or convert at maturity.
Fixed Annuity Rate Calculator
Current MYGA Rates by Term (2026)
| Product | Rate Low | Rate High | Surrender | Best For |
|---|---|---|---|---|
| 3-Year MYGA | 4.80% | 5.50% | 3 years | Short-term CD replacement; near-term income needs |
| 5-Year MYGA | 5.00% | 6.00% | 5 years | Core accumulation vehicle; balanced flexibility |
| 7-Year MYGA | 5.10% | 6.20% | 7 years | Maximum accumulation; longer-term planning |
| 10-Year MYGA | 4.90% | 5.90% | 10 years | Deferred income; legacy planning |
*Rates represent the competitive range from A-rated or better carriers as of April 2026. Individual rates vary by state, premium size, and insurer. Always obtain a current illustration before purchasing.
How Fixed Annuity Rates Work
A MYGA (Multi-Year Guaranteed Annuity) is the simplest fixed annuity structure: you deposit a premium, earn a guaranteed interest rate for a specified term (typically 3–10 years), and receive the accumulated value at maturity. Unlike CDs, the interest grows tax-deferred — meaning you don't pay taxes on earnings until withdrawal. This is a significant advantage for investors in higher tax brackets during accumulation.
The credited rate on a MYGA is set by the insurer based on their investment portfolio — primarily investment-grade corporate bonds and Treasury securities. When interest rates rise (as they did from 2022–2024), MYGA rates rise in tandem. The competitive rate environment of 2025–2026 has made fixed annuities more attractive than at any point in the previous decade.
Surrender Charges: What to Know Before Buying
Every fixed annuity has a surrender period during which early withdrawals are penalized. Typical surrender charges start at 7–10% of the contract value in year one and decline by approximately 1% per year. Most contracts allow a free withdrawal provision — usually 10% of account value per year — without triggering surrender charges.
Never purchase a fixed annuity with funds you may need within the surrender period. For funds with a 3–5 year horizon, shorter-term MYGAs offer the best combination of rate and liquidity. Use our fixed annuity calculator to model accumulation across different terms and rates.