The best fixed annuities pay a competitive guaranteed rate, come from an insurer rated A- or better, and have a surrender period that fits your timeline. The highest headline rate is not always the best deal. Below are today’s top rates by term from carriers rated A- or better, followed by how to judge a fixed annuity beyond its first-year rate.
- Today’s top fixed annuity rates from carriers rated A- or better are in the live table below, updated daily from AnnuityRateWatch.
- First-year rates can be misleading. Always check the carrier’s renewal rate history before you buy.
- A fixed annuity resets its crediting rate annually. If you want a rate locked for multiple years, look at MYGAs instead.
- The right fixed annuity depends on your time horizon, surrender period tolerance, and whether you want income rider options.
- Only buy from carriers rated A- or better by AM Best. Financial strength matters for a 5 to 10 year commitment.
Today’s Best Fixed Annuity Rates by Term
These are the highest fixed annuity rates available today for each guarantee period, limited to carriers rated A- or better.
| Term | Carrier | Product | Rate | AM Best |
|---|---|---|---|---|
| 2-Year | Oceanview Life and Annuity | Harbourview 2 | 5.15% | |
| 3-Year | Ibexis | MYGA Plus 3 (Simple Interest) SI | 6.15% | |
| 4-Year | Oxford Life Insurance Company | Multi-Select 4 | 5.75% | |
| 5-Year | Knighthead Life | Staysail 5 (Simple Interest) SI | 6.65% | |
| 6-Year | Oceanview Life and Annuity | Harbourview 6 | 6.10% | |
| 7-Year | Knighthead Life | Staysail 7 (Simple Interest) SI | 7.10% | |
| 8-Year | Oxford Life Insurance Company | Multi-Select 8 | 5.90% | |
| 9-Year | Oxford Life Insurance Company | Multi-Select 9 | 5.95% | |
| 10-Year | Oceanview Life and Annuity | Harbourview 10 | 6.20% |
Rates shown are the highest available for each term from carriers rated A- or better (AM Best). Products marked SI use simple interest. Always verify current rates with a licensed annuity broker before purchasing.
Products marked SI credit simple interest, so their headline rate overstates growth compared with a compounding product. For a deeper list by term, see the best 5-year fixed annuity rates, the best 3-year annuity rates and our best MYGA rates table.
What Makes a Fixed Annuity “Best”?
We evaluate fixed annuities on five criteria:
- Current crediting rate: the rate you earn in year one.
- Renewal rate history: what the carrier has actually paid in years 2, 3 and beyond.
- Minimum guaranteed rate: the floor the rate can never fall below.
- Financial strength: an AM Best rating of A- or better.
- Surrender period and free withdrawals: how easily you can reach your money.
The first-year rate matters, but renewal history matters more. A product that pays a high rate in year one and drops sharply in year two has not served you well. That is why a multi-year guaranteed annuity (MYGA), which locks the rate for the whole term, is often the cleaner choice.
What to Look For in a Fixed Annuity
1. Renewal Rate Track Record
This is the factor most buyers overlook. Ask for the renewal rates the carrier declared in years 2, 3 and 4 on contracts sold in past years. Carriers whose renewals stay within about 0.50% to 1.00% of the starting rate beat carriers that use a high first-year rate as bait.
2. Minimum Guaranteed Rate
Every fixed annuity contract sets a minimum guaranteed rate that the crediting rate can never fall below. It is typically 1.00% to 2.00%. A higher minimum gives you better protection if rates collapse.
3. Free Withdrawal Provision
Most fixed annuities allow penalty-free withdrawals of up to 10% of the account value each year. Some carriers also offer:
- Interest-only withdrawals in year one
- Increasing withdrawal amounts (e.g., up to 15% after year 3)
- Nursing home waivers that eliminate surrender charges if you’re admitted to a care facility
- Terminal illness waivers
These features have real value. If liquidity access matters to you, compare the free withdrawal provisions carefully.
4. Surrender Period Length
Fixed annuity surrender periods typically run 3 to 7 years. Shorter periods give you more flexibility, while longer ones usually pay a higher rate. Match the period to your real timeline, and skip a 7-year contract if you might need the money in 4. Our guide to annuity surrender charges shows how the fees work.
5. AM Best Financial Strength Rating
You are committing to a 3 to 10 year relationship with the insurer, so financial strength matters. The rating tiers to know:
- A++ / A+: superior financial strength.
- A: excellent financial strength, appropriate for most buyers.
- A-: excellent financial strength and still appropriate. It is worth asking why the carrier is not rated higher.
- B++ and below: Avoid. The rate advantage is not worth the added credit risk.
Fixed Annuity vs. MYGA: Which Should You Choose?
| Your Situation | Better Choice |
|---|---|
| You think rates will rise | Fixed annuity (annual resets capture higher rates) |
| You want to lock in today’s rates | MYGA (multi-year rate guarantee) |
| You want maximum flexibility on when to exit | Fixed annuity (typically shorter surrender periods) |
| You want the highest guaranteed rate | MYGA (longer commitment = higher rate) |
| You’re unsure about rate direction | Consider splitting between a 3-year MYGA and a fixed annuity |
Top MYGA rates usually run above comparable fixed annuity first-year rates, because you commit for the full term. If locking in today’s rates matters to you, a MYGA is the stronger choice. See how a fixed annuity stacks up against a bank product in our annuity vs. CD comparison.
Red Flags When Shopping Fixed Annuities
- First-year rates significantly above market (more than 1% above comparable products). These often come with guaranteed low renewal rates or longer surrender periods.
- No renewal rate history provided. Any reputable carrier or independent agent should be able to show you at least 3 years of renewal rate data on the product.
- Pressure to decide quickly. Every annuity comes with a free-look period of at least 10 days, and longer in many states. Use it to read the contract in full.
- Carrier rated below A-. Financial strength matters for a multi-year commitment. Don’t chase the highest rate from a sub-investment-grade insurer.
- No clear explanation of surrender charges. You should see the full surrender charge schedule in writing before purchasing.
How to Buy a Fixed Annuity (Without Overpaying)
- Use an independent annuity broker, not a captive agent who represents one carrier. Independent brokers can compare rates across many carriers.
- Request the full rate sheet, not just the headline rate. Ask for the minimum guaranteed rate and the surrender charge schedule.
- Ask for renewal rate history. Any reluctance to provide it is a red flag.
- Verify the AM Best rating yourself at ambest.com rather than taking the agent’s word for it.
- Use the free-look period. After purchase you can review the contract and cancel for a full refund.
The best fixed annuities combine a strong rate with a strong insurer and a surrender period you can live with, so judge all three before you buy.
Frequently Asked Questions: Best Fixed Annuities
What is a good fixed annuity rate in 2026?
A good rate is one near the top of today’s market from a carrier rated A- or better. Our live rate table on this page shows the current best rate for each term. A rate far above the rest of the market deserves extra scrutiny of the carrier’s renewal history, financial strength and whether the rate uses simple interest.
How often does the rate on a fixed annuity change?
A fixed annuity rate typically resets once per year on the contract anniversary date. The carrier declares the new rate for the coming year, subject to the contractual minimum guaranteed rate. You cannot be forced below the minimum rate, but there’s no guarantee your initial rate will be renewed at the same level.
Is a fixed annuity or MYGA better right now?
For most people who want to lock in current rates, a MYGA is stronger. Top MYGA rates usually exceed comparable fixed annuity first-year rates. A fixed annuity makes more sense if you believe rates will rise and want the annual reset to capture higher future yields.
What AM Best rating should I require for a fixed annuity?
Require A- or better from AM Best at minimum. Carriers rated A- and above have demonstrated excellent financial strength. Carriers rated B++ or below carry meaningful credit risk for multi-year commitments. Never sacrifice safety for a marginally higher rate.
Can I lose money in a fixed annuity?
No, not due to market performance. A fixed annuity guarantees your principal. The only ways to lose money are: (1) early surrender during the surrender period (surrender charges apply), (2) insurer insolvency (extremely rare with carriers rated A- or better, protected by state guaranty associations), or (3) IRS penalties for withdrawals before age 59½.
