Annuities are financial instruments crafted to supply retirees with a consistent flow of income. They are available in an array of forms, each presenting distinct characteristics and advantages customized to accommodate individual retirement requirements. These annuities can be acquired from agents, insurance companies, banks, or various other financial institutions. In this article, we will look into the leading fixed annuity rates for all kinds of fixed annuities, encompassing traditional fixed annuities and Multi-Year Guaranteed Annuities (MYGAs). We will discuss specific rates and explore the factors that influence these rates, as well as the pros and cons of fixed annuities.

Fixed Annuities

Fixed annuities offer a guaranteed interest rate for a predetermined period, providing a stable and secure income for retirees. When comparing fixed annuity rates, consider the following factors:

Contract term

The length of the contract will affect the interest rate offered. Longer terms usually provide higher interest rates. However, tying up your money for an extended period can also increase the risk of inflation eroding your purchasing power over time.

The financial strength of the issuing company

The credit rating and financial stability of the insurance company are essential as they guarantee the payment of the annuity. Look for companies with strong financial ratings from independent agencies like A.M. Best, Standard & Poor's, or Moody's.

Additional features

Some fixed annuities offer optional benefits such as inflation protection or death benefits, which may impact the interest rate. These riders can provide added security but often come at an additional cost.

Advantages

A Guaranteed Income Stream for a Set Period of Time

Fixed annuities provide a stable income stream that doesn't fluctuate with market conditions.

Low investment risk

The principal is protected, and returns are guaranteed, making fixed annuities a safer investment option.

Protection of principal

The initial investment remains intact, regardless of market fluctuations.

Disadvantages

Limited growth potential

The returns on fixed annuities are generally lower than other investment options due to their conservative nature.

Inflation risk

Over time, inflation may erode the purchasing power of the fixed income stream, reducing its value in real terms.

Less flexibility than other types of annuities

Fixed annuities typically have limited options for withdrawal and payout structures.

Strategies for Finding The Best Fixed Annuity Rates

Compare Rates

Shop around and compare rates from multiple insurance companies.

Shorter-Term Contracts

Consider shorter-term contracts, as they may offer higher rates in a rising interest rate environment.

Optional Riders

Evaluate the benefits of optional riders and weigh their costs against the added security they provide.

Best Fixed Annuity Rates (Updated as of March 2023)

When it comes to fixed annuities, Multi-Year Guaranteed Annuities (MYGAs) and Traditional fixed annuities are two popular types of annuities, each with its own features and benefits. The primary difference between traditional fixed annuities and Multi-Year Guaranteed Annuities (MYGAs) lies in the interest rate guarantee period.

MYGAs offer a fixed interest rate for the entire term of the contract, usually ranging from 3 to 10 years. This provides the annuitant with a predictable, stable return on their investment throughout the contract term, but with limited flexibility in adapting to changing market conditions. On the other hand, Traditional fixed annuities guarantee a minimum interest rate for a short term, typically one year. After this period, the insurance company may adjust the interest rate periodically, subject to a guaranteed minimum rate.

The below table describes the best annuity rates for MYGAs, updated as of March 2023. It is important to know that lower-rated companies tend to offer higher rates to compensate for the additional risk that an annuitant takes (remember that annuities are beneficial only as long as the companies providing them maintain solvency). So, I will be mentioning the top MYGA rates for 1) Annuities that are A-rated and above and 2) Annuities that are rated below A separately.

Best Rated MYGAs (Only A-rated and above) as of April 2023

Product	Company	AM Best	Minimum Premium	Years	Guaranteed Yield
Ibexis MYGA Plus	Ibexis Life	A-	$100,000	5	5.80%
Synergy Choice	Aspida	A-	$100,000	7	5.60%
ECAccumulate	SBLI	A	$25,000	5	5.50%
Palladium MYGA	American National	A	$250,000	6	5.45%
Platinum Assure	Americo Financial	A	$25,000	5	5.40%
Multi Select	Oxford Life	A	$20,000	6	5.35%
Milestone MYGA	Sagicor Life	A-	$100,000	5	5.30%
RetireMax Secure	LSW	A+	$100,000	5	5.25%
Athene MaxRate	Athene	A	$100,000	7	5.25%
HarbourView	Oceanview Life	A-	$80,000	6	5.20%
FG Guarantee Platinum	Fidelity and Guarantee Life	A-	$20,000	7	5.15%
GuaranteeShield	American Equity	A-	$100,000	5	4.90%

Exhibit 1: Best Rated MYGAs (Only A-rated and above) as of 13th April 2023

Note that I have listed one MYGA product of each annuity company that offers the highest rate. It is possible that multiple products of the same company may offer higher rates. For example, Aspida Synergy Choice 7 offers 5.25% for 7 years, and Aspida Synergy Choice 5 offers 5.15% for 5 years, which is higher than many of the MYGAs listed above. It is also important to understand that these rates tend to change frequently, and may vary from state to state. You should check with your annuity provider the exact rate on the day you sign up for an MYGA.

Best Rated MYGAs (Rated below A) as of April 2023

Product	Company	AM Best	Minimum Premium	Years	Guaranteed Yield
AnnuityAdvantage Classic	American Life	B++	$1,000	5	5.65%
Safe Haven	Atlantic Coast	B++	$5,000	3	5.63%
Personal Choice	Sentinel Security	B++	$2,500	3	5.60%
Nassau MY Annuity	Nassau Life	B++	$10,000	7	5.60%
Navigator Ultra	Western United	B++	$10,000	7	5.40%
Certainty Select	EquiTrust	B++	$10,000	10	5.40%
Focused Growth	Standard Insurance	B++	$100,000	7	5.10%

Exhibit 2: Best Rated MYGAs (Only rated below A) as of 13th April 2023

Note that I have listed one MYGA product of each annuity company that offers the highest rate. It is possible that multiple products of the same company may offer higher rates. For example, Nassau MY Annuity 7 offers 5.45% for 7 years, and Nassau MY Annuity 5 offers 5.35% for 5 years, which is higher than many of the MYGAs listed above. It is also important to understand that these rates tend to change frequently, and may vary from state to state. You should check with your annuity provider the exact rate on the day you sign up for an MYGA.

Best Rated Traditional Fixed Annuities as of 13th April 2023

Unlike MYGAs, Traditional fixed annuities guarantee a minimum interest rate for a short term, typically one year. After this period, the insurance company may adjust the interest rate periodically, subject to a guaranteed minimum rate.

Product	Company	AM Best	Minimum Premium	Years	First Year Guaranteed Yield	Guaranteed Minimum Term Yield*
Apollo-MVA	Reliance Standard Life Insurance	A++	$5,000	7	6.30%	4.58%
Apollo-SP	Reliance Standard Life Insurance	A++	$5,000	7	6.15%	4.43%
American Pathway Fixed	American General Life Insurance	A	$100,000	7	5.36%	4.35%
Liberty Select	Liberty Bankers Life Insurance	A-	$5,000	7	5.25%	3.96%
Liberty Choice	Liberty Bankers Life Insurance	A-	$5,000	5	4.75%	3.95%
Century Plus	American National Insurance	A	$100,000	10	8.40%	3.89%
Wealth Quest Citadel Diamond	Amercian National Insurance	A	$100,000	7	5.60%	3.60%
FlexPlus	Guaranty Income Life Insurance	A-	$5,000	10	2.90%	2.90%
Eagle 8	United Heritage Life Insurance	A-	$8,000	10	6.00%	2.62%
SageChoice	Sagicor Life Insurance	A-	$2,000	6	2.00%	2.00%

Exhibit 3: Best Rated Traditional Fixed Indexed Annuities as of 23rd March 2023

Note that the Guaranteed Minimum Term Yield, is the yield (including bonuses if applicable), up to the first penalty free full withdrawal window, assuming the current base interest rate remains unchanged for the duration of the term.

Conclusion

In conclusion, this in-depth guide has examined various fixed annuity rates, encompassing traditional fixed annuities and MYGA rates, along with their distinct pros and cons. When seeking the most suitable fixed annuity rates for each annuity category, it’s crucial to take into account not just the rates, but also the factors influencing them and their alignment with your retirement objectives and financial conditions.

By comprehending the distinct features and advantages of each fixed annuity type, you can make a well-informed decision regarding the most appropriate product for your requirements. Remember that annuities are long-term investments and should be viewed as a component of a holistic retirement strategy. It’s always wise to consult with a financial advisor to confirm that an annuity is the optimal choice for your unique needs and situation. In doing so, you can confidently establish a retirement income plan that offers financial stability and tranquility during your golden years.