A 10-year fixed index annuity (FIA) can be a great retirement savings tool because it offers tax-deferred growth based on an underlying index, such as the S&P 500. Meanwhile, a 0% floor protects against market volatility.
This type of annuity is designed for a long time horizon. This tax-deferred fixed annuity is typically the longest available, but many investors confuse the fixed index annuity’s 10-year term with a rate lock, when it actually refers to the surrender period. This is the period during which you will incur a penalty for making withdrawals.
In exchange for the longest surrender schedule, you usually receive the highest caps and participation rates among the four terms. Many investors opt for a 10-year annuity with income riders to provide future guaranteed income.
This table shows today’s 10-year fixed index annuity rates from top annuity companies. Be sure to weigh the strong caps against the decade-long commitment, and check the free-withdrawal provisions when shopping for the best 10-year fixed index annuity rates.
Today’s 3-year fixed index annuity cap rates
Updated July 31, 2026 · Source: Cannex
| Term | Carrier | Cap rate | AM Best | Bonus | Min premium |
|---|---|---|---|---|---|
| 3 yr | United of Omaha Insurance Company (a Mutual of Omaha company) | 9.00% | A+ | — | — |
| 3 yr | Security Benefit Life Insurance Company | 8.00% | A- | — | — |
| 3 yr | Oceanview Life and Annuity Company | 7.00% | A | — | — |
| 3 yr | MassMutual Ascend Life Insurance Company | 6.50% | A++ | — | — |
All available 3-year cap rates per Cannex. AM Best color-coding: green = Superior (A+/A++), gray = Excellent (A/A-), red = Good (B+/B++). Rates vary by state, premium band and rider selection.
What Does a 10-Year FIA Term Actually Mean?
With a 10-year fixed index annuity, 10 years refers to the surrender period. This is the window during which withdrawals above your contract’s free amount trigger a penalty. This is assessed on a sliding scale that declines over the decade. The 10-year reference does not mean your rate is locked for ten years.
Most 10-year FIAs credit interest over a one-year crediting period, so your 10-year FIA cap rate or participation rate resets annually across all ten years. Other annuities may use a multi-year point-to-point.
Over a contract this long, the durability of the rate matters far more than the opening cap. Because your money is committed for a decade, the free-withdrawal provision –typically 10% per year – is your main source of liquidity, so be sure to review before signing.
See: how indexed rates work for the full mechanics.
How Cap, Participation & Spread Rates Work
There are specific levers that annuity companies use to determine total gains.
| Cap rate | Maximum credited in a period | 6% cap, 8% index gain → you get 6% |
| Participation rate | Share of the gain you receive | 90% par on a 10% gain → 9% |
| Spread | Percentage subtracted first | 3% spread on an 8% gain → 5% |
| Floor | Credited 0% in a down year | Never a loss |
Case Study: Buying a 10-Year Fixed Index Annuity
Name: Robert
Age: 60
Annuity: $250,000
Robert wants to turn part of his savings into guaranteed income later in retirement.
A 10-year fixed index annuity with an income rider lets his benefit base grow while a 0% floor protects his principal from market losses. The long term captures the strongest available caps, with the surrender schedule matched to income he won’t switch on for years.
Find Out How Much Growth You Could Lock In
10-Year FIA vs. 10-Year MYGA & Short CD
| If you care most about… | 10-Yr Fixed Index Annuity | 10-Yr Fixed Annuity (MYGA) |
| Guaranteed return | Capped, market-linked | Set rate |
| Loss protection | 0% floor | Insurer-backed |
| Growth potential | Higher | Limited |
| Future income options | Optional income rider for guaranteed lifetime income | Annuitization only |
| Predictability | Moderate | Very high |
Pairing a 10-Year FIA With an Income Rider
Because the 10-year term lines up with long-term income planning, it’s the length that investors most often pair with a guaranteed lifetime income rider. A rider grows a separate benefit base and turns it into income you can’t outlive. This is useful for couples who want to protect a surviving spouse’s income.
Links to: the FIA income rider pillar → /annuities/types/indexed/income-rider/ and joint-life income riders → /annuities/types/indexed/income-rider/joint-life/
Who a 10-Year FIA Is (and Isn’t) Right For
Who a 10-Year FIA Is Right For:
A 10-year fixed index annuity makes sense if you:
- Have a long time horizon.
- Want the strongest caps.
- Plan to add an income rider for future guaranteed income.
Who a 10-Year FIA Isn’t Right For:
It is less ideal if you:
- May need access to the principal within the decade.
- Want the certainty of a single guaranteed rate.
How We Get Our Rates Data
Annuity.org sources rates through Cannex, updated several times weekly. We list current cap, participation and spread terms by carrier along with each carrier’s AM Best rating. Not all products are available in every state.
Caps, Participation Rates and Spreads, Compared for You
Frequently Asked Questions
No, 10-year indexed annuity rates are not guaranteed for 10 years. The 10-year FIA cap rate or participation rate typically resets annually unless the contract uses a multi-year point-to-point method. The 10 years is the surrender period, not a rate lock.
Yes, 10-year FIAs often have the highest caps. The longer term gives the insurer the most time to fund upside, so 10-year caps and participation rates are frequently the strongest of the common terms at the cost of the longest commitment.
Yes, you can add an income rider to a 10-year FIA. In fact, the 10-year term is the length most commonly paired with a guaranteed lifetime income rider, which is why many long-horizon buyers choose it. The rider adds a fee but provides income you can’t outlive.
You can usually withdraw up to a free-withdrawal amount, often 10% of the contract value per year. Beyond that, surrender charges apply on a declining schedule over the decade.
Still have questions?
