Written By : Elaine Silvestrini
Financially Reviewed By : Thomas J. Brock, CFA, CPA
This page features 15 Cited Research Articles
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Multi-Year Guaranteed Annuity Rates for November 2020

Multi-year guaranteed annuities, or MYGAs, are a type of fixed annuity that guarantees a fixed interest rate for a specified time period — usually three to 10 years — and is subject to fees, called surrender charges, that an annuity holder must pay if he or she withdraws money from an annuity before the specified time period is over.

The best MYGA rate is 2.45 percent for a 10-year surrender period, 2.9 percent for a seven-year surrender period, 3.05 percent for a five-year surrender period and 2.4 percent for a three-year surrender period.

Because MYGA rates change daily, Annuity.org and its partner Senior Market Sales update the following tables every week. Therefore, it’s important to check back for the most recent information.

3-Year Surrender Period

Product Name Rate AM Best Rating
GuaranteeShield 2.40% A- Apply
MaxRate version 1 under 100k 1.30% A Apply
MaxRate version 1 100k+ 1.45% A Apply
Guarantee Platinum 2.10% A- Apply
SecureFore 1.50% A Apply
Bankers Elite (non liquid) 2.15% B++ Apply
Bankers Series (liquid) 2.00% B++ Apply
Guarantee Choice under 100k 1.40% A+ Apply
Guarantee Choice 100k+ 1.85% A+ Apply
Multi-Select 1.60% A- Apply
View all 10

4-Year Surrender Period

Product Name Rate AM Best Rating
American Pathway MYG under 100k 1.45% A Apply
American Pathway MYG 100k+ 1.75% A Apply
Multi-Select 2.25% A- Apply

5-Year Surrender Period

Product Name Rate AM Best Rating
GuaranteeShield 2.65% A- Apply
Guarantee Annuity 1.80% A- Apply
American Pathway MYG under 100k 1.60% A Apply
American Pathway MYG 100k + 1.90% A Apply
Palladium MYG under 100k 2.00% A Apply
Palladium MYG 100k+ 2.10% A Apply
Platinum Assure 5 3.05% A Apply
MaxRate version 1 under 100k 1.90% A Apply
MaxRate version 1 100k+ 2.05% A Apply
Guarantee Platinum 2.75% A- Apply
SecureFore 2.00% A Apply
Bankers Elite (non liquid) 3.00% B++ Apply
Bankers Series Premier (liquid) 2.75% B++ Apply
Bankers Series (liquid) 2.45% B++ Apply
Ultra-Premier (No Roth IRAs) 1.85% A+ Apply
Guarantee Choice under 100k 1.45% A+ Apply
Guarantee Choice 100k+ 1.75% A+ Apply
Multi-Select 2.35% A- Apply
Eleos MVA 2.10% A+ Apply
Eleos SP 1.95% A+ Apply
View all 20

6-Year Surrender Period

Product Name Rate AM Best Rating
Guarantee Annuity 1.85% A- Apply
American Pathway MYG under 100k 1.60% A Apply
American Pathway MYG 100k + 1.90% A Apply
Palladium MYG under 100k 2.20% A Apply
Palladium MYG 100k+ 2.30% A Apply
Multi-Select 2.50% A- Apply
View all 6

7-Year Surrender Period

Product Name Rate AM Best Rating
Guarantee Annuity 1.90% A- Apply
American Pathway MYG under 100k 1.60% A Apply
American Pathway MYG 100k + 1.90% A Apply
Palladium MYG under 100k 2.20% A Apply
Palladium MYG 100k+ 2.30% A Apply
MaxRate version 1 under 100k 2.00% A Apply
MaxRate version 1 100k+ 2.15% A Apply
Guarantee Platinum 2.90% A- Apply
Bankers Elite (non liquid) 3.00% B++ Apply
Bankers Series Premier (liquid) 2.85% B++ Apply
Bankers Series (liquid) 2.55% B++ Apply
Ultra-Premier (No Roth IRAs) 2.15% A+ Apply
Guarantee Choice under 100k 1.80% A+ Apply
Guarantee Choice 100k+ 2.20% A+ Apply
Multi-Select 2.50% A- Apply
View all 15

8-Year Surrender Period

Product Name Rate AM Best Rating
Palladium MYG under 100k 2.20% A Apply
Palladium MYG 100k+ 2.30% A Apply
Multi-Select 2.50% A- Apply

9-Year Surrender Period

Product Name Rate AM Best Rating
Palladium MYG under 100k 2.30% A Apply
Palladium MYG 100k+ 2.40% A Apply
Bankers Elite (non liquid) 3.05% B++ Apply
Multi-Select 2.45% A- Apply

10-Year Surrender Period

Product Name Rate AM Best Rating
American Pathway MYG under 100k 1.60% A Apply
American Pathway MYG 100k + 1.90% A Apply
Palladium MYG under 100k 2.30% A Apply
Palladium MYG 100k+ 2.40% A Apply
Guarantee Choice under 100k 1.55% A+ Apply
Guarantee Choice 100k+ 1.95% A+ Apply
Multi-Select 2.45% A- Apply
View all 7

Understanding Annuity Rates

Rate quotes are useful when choosing among annuities offered by different carriers.

"Consumers should determine how much they would like to invest in an annuity, then shop around to various highly rated insurance companies (look for at least an A- rating) to see what their rates are, and do comparison shopping, like you would when you buy a car. "
— Rubina Hossain, certified financial planner

Annuity rates are set by the insurance companies that issue the contracts. AM Best, a Nationally Recognized Statistical Rating Organization, rates insurance companies based on their ability to pay their financial obligations. The AM Best rating is not a recommendation of a particular annuity product but an assessment of the insurance company’s financial strength.

“Consumers should determine how much they would like to invest in an annuity, then shop around to various highly rated insurance companies (look for at least an A- rating) to see what their rates are, and do comparison shopping, like you would when you buy a car,” certified financial planner Rubina Hossain told Annuity.org.

Many carriers offer penalty-free withdrawal provisions that allow the annuity holder to make partial withdrawals before the surrender period ends without incurring fees. For example, some contracts allow annuity holders to withdraw up to 10 percent, starting in the first year.

Contracts with less generous withdrawal provisions may have higher rates. If you want the possibility of higher rates than fixed annuities offer and are willing to take on more risk, you could explore fixed indexed or variable annuities.

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How Is My Monthly Income Estimated?

Although it’s not possible for an immediate annuity calculator to account for every provision in a contract, our calculator uses a principal amount, a fixed annual interest rate, and your gender and age to generate a rough estimate of what your monthly payments could be for the rest of your life.

We use the gender and age provided along with the Centers for Disease Control and Prevention life expectancy table to estimate the number of years you could receive payments starting one month from when you enter your data.

How Are Annuity Rates Set?

Insurance companies that sell annuities determine how they set growth rates for fixed annuities. The details are spelled out in annuity contracts.

The company will usually provide a guaranteed minimum rate for a set time period, usually three to 10 years, depending on the contract.

Jon Summers headshot
Jon Summers, senior marketing consultant with Senior Market Sales

Rate setting can vary slightly from carrier to carrier, according to Jon Summers, senior marketing consultant with Senior Market Sales. Summers told Annuity.org that, generally speaking, the carrier takes a consumer’s premium and lumps it in with all of the premiums received.

“They then turn around and buy a basket of bonds and use that guaranteed return to either offer a rate to the consumer or buy options to provide upside potential on an index like an FIA (fixed index annuity),” Summers said. “That is why you see some modifiers like caps, spreads, participation rates, etc. This comes from the pricing options the carrier is able to offer their policy holders.”

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Comparing Annuities to Other Financial Options

Annuities are not investment products. They are insurance contracts with tax benefits.

Industry expert Sheryl J. Moore wrote in a January 2019 blog post that fixed annuity sales had declined over the past decade, along with rates. Gone, she said, were the double-digit rates that had been available at the turn of the century.

"Heck — even fixed annuities are considerably more competitive than other ‘safe money’ alternatives."
— Sheryl J. Moore, founder of Wink

For this reason, she said, some advisors had shied away from recommending annuities. But she noted that in spite of their decline, the rates for annuities continued to significantly outpace the interest rates provided by banks for other accounts, including saving accounts and certificates of deposit, or CDs.

And fixed annuities aren’t vulnerable to the risks of the stock market.

Consumers who purchase annuities, she wrote, “can sleep soundly at night, not having to worry about losing principal due to market volatility. These annuity purchasers are more concerned about the return of their money, than the return on their money.”

Consumers who want their money in a safe place, she added, “can see that the potential for gains with indexed annuities is uber-competitive with other fixed money instruments today. Heck — even fixed annuities are considerably more competitive than other ‘safe money’ alternatives.”

Moore’s advice to financial service providers regarding annuities: “We all should probably keep that arrow in our quivers.”

MYGAs vs CDs

In general, fixed annuity rates are about 35 percent higher than CD rates, Samuel Rad, a certified financial planner, told U.S. News and World Report.

Wade Pfau headshot
Wade Pfau, professor of retirement income at The American College of Financial Services

Professor of retirement income Wade Pfau told Annuity.org that MYGAs are “the annuity equivalent of CDs but provide tax deferral.” Unlike certificates of deposit, annuities grow tax deferred, meaning you don’t pay taxes until the money is withdrawn.

The other main difference between MYGAs and CDs is that MYGAs, like other annuities, are not insured by the Federal Deposit Insurance Corporation, or FDIC. Rather they’re backed by the life insurance companies that issue the annuities and by state guaranty associations.

What Is an Annual Payout Rate?

An annual payout rate is the percentage of the premium an annuity holder will receive each year as income.

The insurance company can quote you a price in terms of a payout rate or a monthly income dollar amount, but they are ultimately the same thing.

For example, if an insurer offers you a 5 percent payout rate for a $100,000 annuity, you will receive $5,000 a year or $416 a month.

Annuity Rates
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Note that neither of these is the same as the return on the annuity, which insurance companies rarely reference when quoting annuity prices because the return often depends on how long the annuitant lives — an unknown variable in all cases.

What you need to understand about the return on an annuity is simply this: The longer you live, the greater the return on your annuity because with every payment, the difference between what you have received in income and what you paid in principal decreases, which means the return — expressed as a
percentage — increases.

Using our example above, the return on a $100,000 annuity with a 5 percent payout rate will be approximately 2 percent after 25 years’ worth of payments. After 30 years, the return will be approximately 3 percent, and this will increase with every payment.

Please seek the advice of a qualified professional before making financial decisions.
Last Modified: November 30, 2020

15 Cited Research Articles

Annuity.org writers adhere to strict sourcing guidelines and use only credible sources of information, including authoritative financial publications, academic organizations, peer-reviewed journals, highly regarded nonprofit organizations, government reports, court records and interviews with qualified experts. You can read more about our commitment to accuracy, fairness and transparency in our editorial guidelines.

  1. Barney, L. (2018, August 31). Refresher on Annuity Pricing Mechanics. Retrieved from https://www.planadviser.com/exclusives/refresher-annuity-pricing-mechanics/
  2. Brown, J. (2018, January 5). Fixed Annuities Are an Option Over CDs. Retrieved from https://money.usnews.com/banking/articles/fixed-annuities-are-an-option-over-cds
  3. Chancy, M. (2018, August 31). Certified financial planner. Interview with Annuity.org
  4. Cision PR Newswire. (2018, March 7). Renowned Economist Roger Ibbotson Unveils New Dowd, C. (2017, April 13). What Rising Interest Rates Mean for Annuities. Retrieved from https://www.winkintel.com/2017/04/rising-interest-rates-mean-annuities/
  5. Hussein, R. (2019, November 19). Email with Annuity.org.
  6. Mandell, L. (2013, September 12). An 8.3 Percent Return on Your Money, Guaranteed for Life? Retrieved from https://www.pbs.org/newshour/economy/an-83-percent-return-on-your-m
  7. Molis, J. (2019, April 5). How to calculate the Rate of Return on Annuities. Retrieved from https://budgeting.thenest.com/calculate-rate-return-annuities-28802.html
  8. Moore, S.J. (2019, June 25). Annuity Rates: No Reason to Get Psyched Out: Reprint #AnnuityAwarenessMonth. Retrieved from https://www.winkintel.com/2019/06/annuity-rates-no-reason-to-get-psyched-out-reprint/
  9. Nuss, K. (2017, December 7). Annuities Beat CDs by Offering Higher Guaranteed Rates and Tax Savings. Retrieved from https://www.mdmag.com/physicians-money-digest/personal-finance/annuities-beat-cds-by-offering-higher-guaranteed-rates-and-tax-savings
  10. Pfau, W. (2019, November 19). Email with Annuity.org.
  11. Pfau, W. Safety-First Retirement Planning. Virginia: Retirement Researcher Media, 2019.
  12. Summers, J. (2019, November 19). Email with Annuity.org.
  13. Swanson, W. (2019, February 25). Why That MYGA Rate Is So Hot. Retrieved from https://www.thinkadvisor.com/2019/02/25/why-that-myga-rate-is-so-hot/
  14. Tomlinson, J. (2017, July 21). What Advisors Need to Know About Annuity Mortality Credits. Retrieved from https://www.advisorperspectives.com/articles/2017/07/31/what-advisors-need-to-know-about-annuity-mortality-credits
  15. Zebra Capital Management. (2018, March 7). Renowned Economist Roger Ibbotson Unveils New Research Indicating Fixed Indexed Annuities May Outperform Bonds Over the Next Decade. Retrieved from https://www.prnewswire.com/news-releases/renowned-economist-roger-ibbotson-unveils-new-research-indicating-fixed-indexed-annuities-may-outperform-bonds-over-the-next-decade-300609670.html