Current 10-Year Fixed Annuity Rates

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Source: Cannex, Dec. 11, 2024
Product
Guarantee Period
Surrender Period
AM Best Rating

American Pathway Vision MYG

4.25% 10 Years 10 Years

A

Assured Edge Income Achiever

2.25% 10 Years 10 Years

A

Certainty Select

5.15% 10 Years 10 Years

B++

Focused Growth Annuity

4.50% 10 Years 10 Years

A

Guaranty Income Life Insurance Company

Guaranty Rate Lock

4.10% 10 Years 10 Years

A-

Harbourview Multi-Year Guaranteed Annuity

5.40% 10 Years 10 Years

A

Harbourview Multi-Year Guaranteed Annuity

5.25% 10 Years 9 Years

A

Lincoln Financial

Lincoln Select

4.60% 10 Years 10 Years

A

Multi Select

5.10% 10 Years 10 Years

A

MultiVantage

3.90% 10 Years 10 Years

A+

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Case Study: Buying a 10-Year Fixed Annuity

Graphic of a woman, for the case study

Ellen 

Age: 67  

Amount Invested: $100,000

Ellen is about to enter retirement and, while happy with her savings, she is still looking for ways to grow her money and remain financially secure throughout her retirement.

This can be easier said than done given her risk aversion. She has major concerns about targeting any type of investment with a lot of risk involved, considering a recent retiree like herself is not in a position to risk losing money.

Ellen finds out about a product that checks virtually every box for her: a 10-year fixed annuity. It advertises a guaranteed interest rate of 5.5%, allowing her to grow her money at a solid pace without exposing herself to any real risk. She is also interested in the tax deferral features of the product.

Using $100,000 of her savings, Ellen purchases the annuity. 10 years later, when she turns 77, the annuity will be worth more than $170,000. 

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How soon are you retiring?

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What is your goal for purchasing an annuity?

Select all that apply

10-Year Fixed Annuities vs. Other Term Products

The type of product that makes the most sense for you will depend on your goals and circumstances. Even different terms for fixed annuities will appeal to different people.

“An individual looking to take advantage of high, short-term interest rates may decide to fund a two-year, fixed interest only annuity,” Ken Orenstein, FRC, told Annuity.org. “Another individual structuring lifetime, guaranteed income may choose a 10-year product.”

Those lifetime payments are one major way a 10-year fixed annuity differs from other products. When you purchase your annuity, you can have the option to convert its value into guaranteed payments after your term is over.

This means you will receive set, monthly payments for the rest of your life, even if those payments eclipse the value of the annuity. Lifetime payments are an attractive feature for many retirees since they can effectively combat longevity risk.

10-year fixed-rate annuities are popular because their rates are high and guaranteed for the duration. I have many clients with what I term “lazy money”—funds they never intend to use and plan to leave behind for their families. Why not place these funds in a fixed annuity to benefit from guaranteed growth, tax deferral and leave them to a beneficiary without the risk and headache of market fluctuation instead.

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10-Year Fixed Annuity vs. CDs and Bonds

CDs and bonds operate differently than fixed annuities but can have appealing advantages. One place where annuities lag compared to CDs and bonds is liquidity. 

With annuities, you will likely face steep penalties if you attempt to withdraw more than 10% of the annuity’s value before your agreed-upon term has passed. Bonds and CDs simply withhold a few months’ interest as a penalty.

10-Year Fixed Annuity vs. Fixed Index Annuity

Another potential option for those interested in longer-term strategies is a fixed index annuity. These products provide the same guaranteed protection as a fixed annuity but leave more room for growth by tying it to the performance of an index.

In exchange for the protection of your principal, your growth is capped or set as just a portion of the index’s growth. For example, even if an index grows by 11%, your annuity may grow by 6%.

This avenue allows annuity buyers to participate in market gains more than they would with a fixed annuity while still being protected from downturns.

How We Get Our Rates Data

Annuity.org supplies fixed annuity rates through Cannex — an independent company that provides access to a database of updated annuity products.

We synchronize and update our rates information several times each week using the newest Cannex data to help ensure you have access to the most recent interest rates available.

Annuity.org features rates for fixed annuities from 1- to 10-year terms. In addition, we list the carrier that offers the rate and its respective AM Best financial strength rating.

Please seek the advice of a qualified professional before making financial decisions.
Last Modified: November 7, 2024
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