Indexed Annuity Rates

As I approach retirement, understanding annuity rates becomes crucial. The annuity rate report provided me with the knowledge to compare and choose the best rates, empowering me to maximize my savings and secure a financially sound future.
Les Balmer
Recently retired. Dallas,Texas
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As a savvy investor, it’s essential to understand the current landscape of indexed annuity rates to make the most informed decisions about your retirement portfolio. Indexed annuities are a popular choice for those seeking a balance between risk and reward, as they offer the potential for higher returns than traditional fixed annuities while providing downside protection against market fluctuations. In this article, we’ll explore how to shop for the best indexed annuity rates and list the top indexed annuity rates available as of today.

Understanding Indexed Annuities

Before diving into the best rates, it’s crucial to understand what indexed annuities are and how they work. Indexed annuities are a type of fixed annuity that earns interest based on the performance of a specific market index, such as the S&P 500. They offer a minimum guaranteed interest rate and the potential for additional returns tied to the market index’s performance. The interest earned is subject to a cap, participation rate, and/or spread, which can affect your overall return.

  • Participation rate:

The percentage of the index's gain credited to the annuity. A higher participation rate means more potential growth, but it may come with other limitations, such as a cap rate or a spread.

  • Cap rate

The maximum rate of return that can be credited to the annuity. A high cap rate allows for greater potential growth, but it may be accompanied by a lower participation rate or higher fees.

  • Index used

The performance of the chosen index will impact the annuity's returns. Commonly used indices include the S&P 500 and the Dow Jones Industrial Average. It's essential to understand how the index is calculated and the risks associated with it.

Advantages of Indexed Annuities

  • Guaranteed minimum interest rate

Indexed annuities offer a minimum guaranteed rate of return, ensuring some level of growth even in poor market conditions.

  • Potential for higher returns:

Potential for higher returns: These annuities have the potential for higher returns based on the performance of a market index.

  • Protection from market downturns

Protection from market downturns: Indexed annuities limit the downside risk by offering a guaranteed minimum return.

Disadvantages of Indexed Annuities

  • Limited growth potential

The potential returns are often capped, limiting the growth potential compared to other investment options.

  • Complexity

Indexed annuities can be complicated due to their unique structure and features, such as participation rates, cap rates, and spreads.

  • Less flexibility than other types of annuities

Like fixed annuities, indexed annuities typically have limited withdrawal and payout options.

Shopping for the Best Indexed Annuity Rates

To find the best indexed annuity rates, consider the following steps:

  • Evaluate the index

Look for indexed annuities that track reputable and historically strong market indices.

  • Research

Research the historical performance of the chosen index and how it may impact the annuity's returns.

  • Analyze the crediting method

Understand how the annuity's interest is calculated, and be aware of factors like caps, participation rates, and spreads.

Assess the surrender period

Longer surrender periods often come with higher penalties for early withdrawals, so choose an indexed annuity that aligns with your financial goals and timeline.

  • Strength and Credit Rating

Consider the financial strength and credit ratings of the issuing company, as it guarantees the minimum interest rate and any additional benefits.

Best Indexed Annuity Rates (Updated as of April 2023)

ProductCompanyAM BestMinimum PremiumYearsMax Participation CapFixed Account Rate
Prosperity EliteFidelity & Guaranty Life Insurance CoA-$10,0001415.00%5.25%
Athene Performance EliteAthene Annuity & Life Insurance CoA$10,000713.50%3.00%
Accelerator PlusFidelity & Guaranty Life Insurance CoA-$10,0001413.00%4.50%
Accumulator PlusFidelity & Guaranty Life Insurance CoA-$10,0001012.75%4.25%
Retirement Plus MultiplierAtlantic Coast Life Insurance CompanyB++$5,000512.00%4.50%
Asset ShieldAmerican EquityA-$5,000711.75%3.75%
Power ProtectorAmerican General Life InsuranceA$100,0001011.00%4.75%
American LegendMass Mutual Ascend Life InsuranceA+$100,000710.00%4.10%
RetireVantageMidland National Life InsuranceA+$75,0001010.00%4.40%
VersaChoiceNorth American Co for Life & HealthA+$75,0001010.00%4.25%
Strategy Indexed Annuity PLUSAmerican National InsuranceA$10,000109.65%4.50%
Retirement StagesDelaware Life InsuranceA-$10,00079.50%3.75%

Exhibit 1: Top Potential Annuity Rates for Fixed Indexed Annuities as of April 2023

Please note that these rates are subject to change, and it’s essential to verify current rates and terms with the respective insurance providers. Additionally, the following annuities may have different features, surrender periods, and riders, so be sure to compare them based on your specific needs.

It is essential to understand that there is no one-size-fits-all “best” annuity rate in fixed indexed annuities due to the many factors that can influence the potential returns and overall performance of the contract. Individuals considering an FIA should carefully evaluate their financial goals, risk tolerance, and personal circumstances to find the most suitable annuity contract. Consulting with a financial advisor can help in making an informed decision and selecting the most appropriate FIA to meet one’s unique needs.


By taking the time to research and compare various indexed annuities, you can find the best rates and terms to suit your financial objectives. Remember to consider factors like the market index, crediting method, surrender period, and insurance company ratings when making your decision. With the right indexed annuity, you can enjoy a comfortable retirement with the potential for higher returns and downside protection against market volatility.

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