Fixed annuity rates have attracted renewed attention in 2026 as savers and retirees look for ways to secure predictable returns without taking the same level of market risk associated with stocks and other investments. Current multi-year guaranteed annuity rates, commonly called MYGAs, have reached the 6% range for several terms.
Interest rates influence the returns insurers can offer on fixed annuity products.
Insurance companies generally invest premiums in portfolios containing bonds and other fixed-income assets. When market yields are higher, insurers can potentially offer more competitive crediting rates on newly issued annuity contracts.
Current MYGA rates demonstrate how competitive the market has become.
As of October 5, 2026, one rate-tracking source listed the following highest guaranteed rates among carriers rated B or better by A.M. Best:
| Term | Highest Listed Rate |
|---|---|
| 2 years | 5.10% |
| 3 years | 6.10% |
| 4 years | 6.05% |
| 5 years | 6.40% |
| 6 years | 6.35% |
| 7 years | 6.30% |
| 8 years | 6.45% |
| 9 years | 6.30% |
| 10 years | 6.35% |
These figures represent specific products and are not universal rates. Rates can vary according to state, deposit amount, insurer, product structure, and other contract terms.
A fixed annuity is an insurance contract designed to provide a specified interest rate or a predetermined method of crediting interest.
With a MYGA, the interest rate is generally guaranteed for a stated period.
For example, a five-year MYGA could guarantee a fixed rate for five years. During that period, the insurer credits interest according to the contract terms.
The structure is somewhat similar to a certificate of deposit in the sense that money is committed for a specified period in exchange for a guaranteed return.
There are important differences, however.
An annuity is an insurance product rather than a bank deposit. Annuities are not FDIC-insured, and guarantees depend on the financial strength and claims-paying ability of the issuing insurer.
MYGA stands for Multi-Year Guaranteed Annuity.
MYGAs are fixed deferred annuities that generally guarantee a stated interest rate for a predetermined period.
Common terms include:
The rate is generally locked for the selected guarantee period.
This structure can appeal to people who want predictable growth without having to monitor changing interest rates every few months.
Current rates vary substantially by product.
In October 2026, tracked MYGA rates ranged from roughly 5% to the mid-6% range for many terms.
Annuity.com reported a highest rate of 6.40% for five-year contracts and 6.45% for eight-year contracts on its October 5 rate board.
CBS News similarly reported that leading MYGA rates in early September were generally between 5.25% and 6.30%, depending on the term.
This makes the current environment noteworthy for people comparing guaranteed-return products.
The answer depends on the specific contract.
A MYGA can provide a guaranteed annual interest rate for its contract period, but the way interest is credited and compounded can differ.
For example, a contract advertising a 6% rate may have specific provisions concerning:
The contract should therefore be reviewed rather than relying solely on a headline rate.
A higher rate may come with a longer commitment.
A five-year contract and a ten-year contract can have different rates, liquidity provisions, and surrender schedules.
A longer term can provide rate certainty for an extended period.
The tradeoff is that funds may be subject to restrictions or surrender charges if withdrawn before the end of the contract period.
A rate comparison should therefore consider both the return and the time commitment.
Fixed annuities are often compared with certificates of deposit.
Both products can provide predictable interest over a defined period, but they have different structures.
Current October 2026 data showed some MYGA rates above comparable CD rates.
For example, Annuity.com reported a 5.10% best two-year MYGA rate compared with a 4.40% two-year CD rate in its comparison. For three years, the listed MYGA rate was 6.10% compared with 4.45% for the referenced CD.
These comparisons should not be treated as equivalent investments.
CDs are bank deposits and can qualify for FDIC insurance within applicable limits. Annuities are insurance contracts and do not have FDIC insurance.
Tax treatment is another major distinction.
Interest earned inside a nonqualified annuity generally receives tax-deferred treatment.
Taxes are generally not due each year simply because interest accumulates inside the contract.
When taxable money is withdrawn, earnings are generally taxed as ordinary income rather than receiving the capital-gains treatment associated with certain investments.
Withdrawals made before age 59½ can also have additional tax implications in some circumstances.
Because tax consequences depend on individual circumstances, professional tax advice can be appropriate before making a large annuity purchase.
Retirees often place greater emphasis on predictable income and preservation of principal.
Market volatility can be particularly concerning when withdrawals are being made from retirement savings.
A fixed annuity can provide a predictable interest rate during the guarantee period.
However, fixed annuities do not eliminate all financial risks.
Inflation, liquidity restrictions, insurer financial strength, and opportunity cost remain important considerations.
A guaranteed 6% interest rate may sound attractive, but the real value of that return depends partly on inflation.
If inflation rises substantially, purchasing power can grow more slowly than the account balance suggests.
For example, an account earning 6% does not necessarily increase purchasing power by 6% if consumer prices are also rising.
This is one reason a diversified retirement strategy can be important.
One of the most important differences between a fixed annuity and a conventional savings account is liquidity.
Many fixed annuities impose surrender charges if more than the permitted amount is withdrawn before the surrender period ends.
The surrender schedule can vary considerably by contract.
Before committing funds, it can be useful to understand:
These provisions can significantly affect access to funds.
Some fixed annuity contracts include a Market Value Adjustment, or MVA.
An MVA can affect the amount received when money is withdrawn during a particular period.
The adjustment can increase or decrease the withdrawal value depending on changes in interest rates and the specific contract formula.
Not every annuity has an MVA.
The contract should be reviewed carefully to determine whether one applies.
The issuing insurer's financial strength is an important consideration.
Unlike a bank account protected by FDIC insurance, an annuity's guarantees are based on the financial strength and claims-paying ability of the issuing insurance company.
Independent rating organizations such as A.M. Best evaluate insurers' financial strength.
Current rate comparisons frequently show the insurer's A.M. Best rating alongside the advertised annuity rate.
A higher rate from a lower-rated insurer should therefore not automatically be viewed as better than a somewhat lower rate from a financially stronger insurer.
A high rate is only one part of an annuity comparison.
Suppose one company offers 6.45% while another offers 6.10%.
The higher rate may look more attractive initially.
However, the contracts could have different:
A complete comparison can reveal that the lower rate provides a better fit for a particular financial situation.
Annuity products can have different minimum premium requirements.
Some contracts may accept relatively modest deposits, while others may require substantially larger amounts.
Current market listings show minimum deposits ranging from around $10,000 to $100,000 or more depending on the product.
A rate should therefore always be evaluated alongside its minimum deposit requirement.
An annuity advertised nationally may not necessarily be issued with the same terms in every state.
Insurance products are regulated at the state level.
The rate, product availability, minimum deposit, surrender schedule, and other provisions can differ depending on location.
A national rate table should therefore be treated as a benchmark rather than a guarantee that the exact product can be purchased everywhere.
Fixed annuities can play different roles in retirement planning.
Some people use them for:
The appropriate role depends on overall retirement income, assets, expenses, tax considerations, and liquidity needs.
An annuity ladder involves dividing money among contracts with different maturity dates.
For example, instead of placing all funds into one ten-year annuity, someone might use several contracts with staggered maturity periods.
Potential advantages include:
The strategy can also involve more complexity and should be evaluated against individual financial goals.
At the end of the guarantee period, the contract reaches its maturity date.
Depending on the contract, the owner may be able to:
Renewal rates are not necessarily the same as the original guaranteed rate.
The maturity provisions should be reviewed before purchasing the contract.
For a MYGA with a fixed guaranteed rate, the contract's guaranteed rate generally cannot be reduced during the specified guarantee period.
That is one of the major attractions of a multi-year guarantee.
If market rates fall after purchase, the contract's guaranteed rate remains in place according to its terms.
If market rates rise substantially, however, the owner may not benefit from the higher rates until the existing contract reaches an appropriate withdrawal or maturity point.
This is an important tradeoff.
Locking in a rate provides certainty.
But rate certainty also means giving up some flexibility.
If rates rise substantially after purchasing a long-term annuity, the funds remain committed to the existing contract unless the contract's withdrawal provisions permit otherwise.
This creates an opportunity-cost risk.