Today’s Best Fixed Annuity Rates

The best fixed annuity rate available today is 5.70% simple interest, offered by Ibexis in a 7-year fixed annuity, according to December 26, 2024 data.

Fixed annuities are characterized by offering specified rates for a specified period, making them similar products to certificates of deposit (CDs), but with certain unique advantages.

Best Term Fixed Annuity Rates

Term	Insurance	Product	AM Best Rating	Bowl
2 years	Upstream Life	Secure Legacy	B-	5.25%
3 years	Aspida	Synergy Choice	A-	5.00%
4 years	Upstream Life	Secure Legacy	B-	5.70%
5 years	Farmers Life	Safeguard Plus	B++	5.40%
7 years	Ibexis	MYGA Plus	A-	5.70%
10 years	Oceanview	Harbourview 10	A	5.40%

How do fixed annuities work?

Fixed annuities offer a guaranteed rate of return for a specific period. For example, if you purchase a 5-year annuity, the interest rate remains fixed for those five years, giving you financial stability and predictability.

Phases of an annuity:

Accumulation: The period you save or invest to generate future income.
Distribution: The phase in which you receive periodic payments from the annuity.

Types of rates in annuities

Multi-year guaranteed annuities (MYGA): These rates remain constant throughout the contract.
Traditional fixed annuities: They offer an initial guaranteed rate, but this can be adjusted annually.
Indexed Annuities: They combine elements of fixed and variable annuities, with a guaranteed minimum return plus earning potential linked to stock market indices.

Factors that determine annuity rates

Annuity rates depend on several factors:

The age and health of the buyer.
The duration of the contract or payment period.
The current interest rate environment.

When general interest rates are high, annuity rates tend to rise due to the higher returns that companies earn on their investments in bonds and other financial instruments.

Are Annuities the Right Investment for You?

Remember that to invest in any product, the first and wisest thing you should do is an analysis of your economic situation as well as your goals. Then you can move on to consider the advantages and disadvantages. In the case of annuities, here is a list of both:

Advantages:

Tax-deferred growth.
Stable income stream during retirement.
Death benefit options for beneficiaries.

Disadvantages:

Low liquidity, with penalties for early withdrawals.
Administrative costs and other associated charges.

Before purchasing an annuity, consider your financial situation and retirement goals, and carefully evaluate the terms of the contract.

For more information or personalized quotes, do not hesitate to contact us.