Best Fixed Annuity Rates for October 2025
Explore today’s top fixed annuity rates and learn how they can help you secure steady, predictable income in retirement. Use this guide to compare terms, understand how rates work, and decide whether locking in now is right for your goals.
- Written by Jennifer Schell, CAS®
- Edited By
Lamia Chowdhury
Lamia Chowdhury
Financial Editor
Lamia Chowdhury is a financial content editor for RetireGuide and has over three years of marketing experience in the finance industry. She has written copy for both digital and print pieces ranging from blogs, radio scripts and search ads to billboards, brochures, mailers and more.
Read More- Published: June 3, 2020
- Updated: October 23, 2025
- 6 min read time
- This page features 4 Cited Research Articles
Best Annuity Rates This Week
Multi-year guaranteed annuities (MYGAs) lock in a fixed interest rate for a set term — typically three to 10 years. Below are today’s top rates from leading insurance providers. Rates are updated frequently.
| Term | Rate | Provider | Product | AM Best Rating |
|---|---|---|---|---|
| 1-Year | 6.00% | Global Atlantic | ForeCare Fixed Annuity (LTC) | A |
| 2-Years | 5.25% | Mountain Life Insurance Company | Secure Summit | B |
| 3-Years | 6.00% | Mountain Life Insurance Company | Secure Summit | B |
| 4-Years | 5.30% | Americo Financial Life and Annuity Insurance Company | Platinum Assure | A |
| 5-Years | 6.15% | Wichita National Life Insurance | Security 5 MYGA | B+ |
| 6-Years | 5.50% | Americo Financial Life and Annuity Insurance Company | Platinum Assure | A |
| 7-Years | 5.80% | Mountain Life Insurance Company | Secure Summit | B |
| 8-Years | 5.40% | Clear Spring Life and Annuity Company | Preserve Multi-Year Guaranteed Annuity | A- |
| 9-Years | 5.40% | Clear Spring Life and Annuity Company | Preserve Multi-Year Guaranteed Annuity | A- |
| 10-Years | 5.80% | Mountain Life Insurance Company | Secure Summit | B |
Learn More About Your Annuity Options
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Fixed Annuities vs. Bonds and CDs
If you’re looking for a safe, reliable way to grow your retirement savings, you’ve likely come across fixed annuities, certificates of deposit (CDs) and U.S. Treasury bonds. All three protect your principal and offer steady, predictable returns — qualities many retirees value.
Where they differ is in how they earn interest and how those earnings are taxed. The table below compares common term lengths and rates to help you see how each option may fit into your retirement income plan.
| Feature | High-Yield CD | U.S. Treasury Bond | Fixed Annuity (MYGA) |
|---|---|---|---|
| Typical Rate Range | Around 4%–5% | Around 4%–4.5% | Around 5%–7% |
| Term Lengths | 6 months – 5 years | 1 – 30 years | 3 – 10 years |
| Tax Treatment | Interest taxed annually | Interest taxed annually | Grows tax-deferred until withdrawal |
| Liquidity | Penalties for early withdrawal | Can sell before maturity (may lose value) | Surrender charges apply if cashed out early |
| Principal Protection | FDIC insured up to $250,000 | Backed by U.S. government | Guaranteed by issuing insurance company |
| Ideal For | Short-term savers seeking safety | Conservative investors seeking stability | Retirees seeking higher guaranteed income and long-term growth |
Annuities grow tax-deferred, which means your interest compounds faster than it would in taxable accounts like CDs or bonds. This can make a significant difference over time, especially for long-term savers.
- Multi-Year Guaranteed Annuities (MYGAs)
- MYGAs typically offer higher base rates than CDs or bonds and allow your earnings to grow tax-deferred until you begin withdrawals. They’re often a good fit for retirees who want guaranteed growth without market risk.
- Certificates of Deposit (CDs)
- CDs are backed by the FDIC and provide predictable returns. However, interest is taxed each year, which can reduce your overall earnings — especially if you’re reinvesting the income.
- U.S. Treasury Bonds
- Treasuries are considered one of the safest investments available and can add stability to a portfolio. Their yields, though, tend to be lower than annuities or CDs, which may limit long-term growth potential.
Understanding How Annuity Rates Work
When you shop for an annuity, you’ll notice that not all “rates” mean the same thing. Depending on the product type and how it’s structured, the rate you see advertised may describe growth, income payout, or cash flow — each representing a different part of your annuity’s performance.
Understanding these differences helps you make more confident decisions about which annuity fits your retirement goals.
| Rate Type | What It Means | Where You’ll See It | What It Impacts |
|---|---|---|---|
| Declared (Interest) Rate | The guaranteed annual growth rate during the accumulation period. | Fixed and multi-year guaranteed annuities (MYGAs). | How quickly your balance grows before income begins. |
| Payout Rate | The percentage of your premium paid to you annually as income. | Immediate or deferred income annuities. | The size of your regular payments. |
| Cash Flow Rate | The total amount you receive each year divided by your original premium — includes both interest and return of principal. | Lifetime income or hybrid annuities. | Your annual income stream as a percentage of what you invested. |
| Bonus Rate | A one-time or introductory increase in the declared rate for new contracts or higher deposits. | Promotional MYGAs and fixed annuities. | Boosts early growth but may come with longer surrender periods. |
- Your quoted rate may not equal your payout.
- An annuity paying 6% a year doesn’t mean you’re earning 6% interest; it may include part of your principal returned over time.
- Higher rates often mean longer commitments.
- MYGAs that lock in for five or more years tend to offer better yields than shorter-term options.
- Tax deferral matters.
- Unlike CDs or bonds, your annuity’s growth isn’t taxed annually, which can enhance your long-term return.
- Compare across providers.
- Insurance companies set their own declared rates based on bond yields, financial strength, and product strategy.
The Best Annuity Companies and Providers of 2025Several factors determine the rate you’ll receive on an annuity. Annuity rates tend to be higher when the general level of all interest rates is higher.
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Comparing Annuity Rates
When comparing annuity rates, it’s important to conduct your own research and not solely pick an annuity simply for its high rate.
Annuities can be complex, each with its own benefits and risks that affect its rates.
- Consider the type of annuity
- Each annuity type has a different range of average interest rates. For example, a 4-year fixed annuity could have a higher rate than a 10-year multi-year guaranteed annuity (MYGA). This is because fixed annuities might offer a higher rate for the first year and then reduce the rate for the remainder of the term, while MYGAs guarantee the rate for the whole term.
- Only compare annuity rates from financially strong insurance companies
- The guarantee on an annuity is only as good as the company that issues it. If the company you buy your annuity from goes broke or bust, you could lose money. Check a company’s financial strength by consulting nationally recognized impartial rating agencies, like AM Best. Most experts recommend only considering insurers with a rating of A- or above for long-term annuities.
- Remember that your age and health affect your annuity rate
- Annuity income rises with the age of the purchaser because the income will be paid out in fewer years, according to the Social Security Administration. Don’t be surprised if your rate is higher or lower than someone else’s, even if it’s the same product.
Frequently Asked Questions About Annuity Rates
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4 Cited Research Articles
- Guardian Editorial Team. (2025, March 20). Annuities vs. Certificates of Deposit (CDs). Retrieved from https://www.guardianlife.com/annuities/cds-vs-annuities
- U.S. Securities and Exchange Commission. (2025). Annuities. Retrieved from https://www.investor.gov/introduction-investing/investing-basics/investment-products/insurance-products/annuities
- Cox, J. (2024, April 16). Fed Chair Powell Says There Has Been a "Lack of Further Progress" This Year on Inflation. Retrieved from https://www.cnbc.com/2024/04/16/powell-cites-lack-of-progress-this-year-in-reaching-feds-inflation-goal.html
- ELCO Mutual Life & Annuity. (2023, April 19). Tax Deferral: The Power of Compound Interest. Retrieved from https://www.elcomutual.com/news/tax-deferral-power-compound-interest
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