Jennifer Schell, CAS®
  • Written by Jennifer Schell, CAS®
  • Edited By
    Lamia Chowdhury
    Lamia Chowdhury, editor for RetireGuide.com

    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.

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  • Published: June 3, 2020
  • Updated: July 8, 2024
  • 6 min read time
  • This page features 4 Cited Research Articles
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How to Cite RetireGuide.com's Article

APA Schell, J. (2024, July 8). Best Fixed Annuity Rates for July 2024. RetireGuide.com. Retrieved July 15, 2024, from https://www.retireguide.com/annuities/rates/

MLA Schell, Jennifer. "Best Fixed Annuity Rates for July 2024." RetireGuide.com, 8 Jul 2024, https://www.retireguide.com/annuities/rates/.

Chicago Schell, Jennifer. "Best Fixed Annuity Rates for July 2024." RetireGuide.com. Last modified July 8, 2024. https://www.retireguide.com/annuities/rates/.

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Key Principles

RetireGuide’s mission is to provide seniors with resources that will help them reach important financial decisions that affect their retirement. Our goal is to arm our readers with knowledge that will lead to a healthy and financially sound retirement.

We’re dedicated to providing thoroughly researched annuity information that guides you toward making the best possible financial decisions for you and your family.

We partner with Senior Market Sales (SMS), a leader in the insurance industry with over 30 years of experience and a network of 66,000 independently licensed agents across the United States.

Our partnership with SMS (and Insuractive, the company’s consumer-facing branch) allows us to deliver expertly researched and reviewed content at no cost or obligation to all of our visitors. It also gives our visitors the opportunity to take the next step in their financial journey by requesting help from our partner through the phone numbers or forms provided on our website.

If a visitor chooses to inquire about an annuity or other financial product through SMS as a result of our research and accurate information, RetireGuide may receive compensation for connecting the visitor with SMS. The revenue we earn for helping visitors get the help they’re seeking makes RetireGuide stronger for our audiences.

The content and tools created by RetireGuide adhere to strict editorial guidelines to ensure quality and transparency.

Editorial Independence

While the experts from SMS are available to help you navigate various annuity options, RetireGuide retains complete editorial control over the information it publishes.

We operate independently from SMS, which allows the award-winning RetireGuide team to provide you with unbiased information.

Visitors can trust our inflexibility regarding our editorial autonomy. We do not allow our partnership to influence RetireGuide’s editorial content whatsoever.

Best Annuity Rates This Week

Multi-year guaranteed annuities, also known as MYGAs, are fixed annuities that lock in a stable interest rate for a specified time period. Surrender periods usually last three to 10 years.

Because MYGA rates change daily, RetireGuide and its partners update the following tables below frequently. It’s important to check back for the most recent information.

Below are examples of the current best annuity rates.

TermRateProviderProductAM Best Rating
1-Year 6.00%GBU Financial Life Insurance CompanyFuture Flex 8A-
2-Years5.55%Aspida Life Insurance CompanyAspida Advisory MYGAA-
3-Years5.92%Atlantic Coast LifeSafe Harbor Bonus GuaranteeB+
4-Years5.70%National Security Insurance CompanyMYGAB++
5-Years6.00%Atlantic Coast LifeSafe Harbor Bonus GuaranteeB+
6-Years6.05%Atlantic Coast LifeSafe Harbor Bonus GuaranteeB+
7-Years6.25%Atlantic Coast LifeSafe Harbor Bonus GuaranteeB+
8-Years5.50%EquiTrust Life Insurance CompanyCertainty SelectB++
9-Years5.50%American National Insurance CompanyPalladium MYGA
10-Years6.60%Atlantic Coast LifeSafe Harbor Bonus GuaranteeB+
Icon of a money saving flower Learn More About Your Annuity Options
Talk to one of Annuity.org's expert agents to see if an annuity is right for your retirement savings plans.
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Several 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.

Annuity Rates vs. CD Rates

When shopping for fixed annuity rates, you might find it helpful to compare rates to certificates of deposit (CDs), another popular option for safe, reliable growth.

Both products have interest rates that vary over time and follow trends set by the Federal Reserve’s raising or lowering of interest rates. In general, fixed annuity rates outpace the rates for CDs of a similar term.

Line graph showing fixed annuity rates versus cd rates over time

Aside from earning a higher rate, a fixed annuity might provide better returns than a CD because annuities have the advantage of tax-deferred growth. This means you won’t pay taxes on the interest earned until you start receiving payments from the annuity, unlike CD interest, which is counted as taxable income each year it’s earned.

Tax-deferred growth can make a big difference in how much your savings grow because more money is left in the account to compound the interest.

Infographic showing what happens when you put $100,000 in a fixed annuity versus CD

How Annuity Rates Work

Fixed annuities work by accumulating growth at a guaranteed rate for a certain amount of time before converting to a stream of income. The rates annuity companies offer change frequently and tend to mirror long-term bond interest rates.

When bond rates increase, annuity rates also tend to rise. That’s because insurance companies invest most of the money they receive as annuity premiums in fixed-income securities like conservative bonds.

The Federal Reserve raised interest rates several times throughout 2022 and 2023 in an attempt to combat inflation. This led many experts to believe that the Fed would lower rates in 2024.

However, at a policy forum in April 2024, Federal Reserve chair Jerome Powell suggested that rates might not come down for some time. Powell said that the Fed isn’t sure when interest rate cuts might occur, as inflation has yet to fall to the Fed’s benchmark of 2%.

These interest rate predictions, which can correlate with annuity rates, suggest that 2024 could be a good time to purchase a fixed annuity before rate cuts happen.

Remember that the best annuity rates today may be different tomorrow. It’s important to check with insurance companies to confirm their specific rates.

The Best Annuity Companies and Providers of 2024
Lock In Today’s Best Fixed Annuity Rates
Start with a free annuity consultation to learn how annuities can help fund your retirement.
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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.

Things To Remember When Comparing Annuity 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.

Other Considerations Beyond Annuity Rates

Annuity rates are just one factor to consider when buying an annuity. Ideally, you want to look for a high rate but also for a low minimum investment amount, low fees and an annuity that’s backed by a company with a history of financial stability.

What To Consider in Addition to Annuity Rates
Fees
Understand the fees you’ll have to pay to administer your annuity and if you need to cash it out. Cashing out can cost up to 10% of the value of your annuity, according to the Wisconsin Office of the Commissioner of Insurance. On the other hand, administrative fees can add up over time. Make sure you calculate the cost as part of your overall return.
Inflation
Inflation can eat up your annuity’s value over time. You could consider an inflation-adjusted annuity that boosts the payouts over time. Understand, though, that it will significantly reduce your initial payouts. This means less money early in retirement but more as you age.
Protection
Unlike CDs, annuities are not insured by the federal government. However, your payouts are protected by your state’s guaranty association. The amount that’s guaranteed varies from state to state. The National Organization of Life & Health Insurance Guaranty Associations can help you find out how protected your investment is.
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Frequently Asked Questions About Annuity Rates

Can I get out of my annuity if my interest rates decrease?
In most cases, no, you cannot surrender your annuity if your interest rate decreases. However, there may be rare exceptions. Contact your insurer and review your contract to confirm your annuity’s rules.
Who sets annuity rates?
Insurance companies oversee setting and updating annuity rates.
Should you buy an annuity when interest rates are high or low?
Buying an annuity could be in your best interest when interest rates are high. Annuity rates are known to be higher when interest rates are up.
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Last Modified: July 8, 2024

4 Cited Research Articles

  1. 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
  2. U.S. Securities and Exchange Commission. (2024). Annuities. Retrieved from https://www.investor.gov/introduction-investing/investing-basics/glossary/annuities
  3. 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
  4. Wisconsin Office of the Commissioner of Insurance. (2018, February). Consumer’s Guide to Understanding Annuities. Retrieved from https://oci.wi.gov/Documents/Consumers/PI-214.pdf