The Best 5-Year Fixed Annuity Rates and Products (2024)

Current 5-Year Fixed Annuity Rates

Premium

There is no minimum amount required to purchase an annuity, though the national average is $150,000.

State

Provider

Guarantee Period

Fixed annuities guarantee an interest rate for a set number of years, known as the guarantee period. Once the guarantee period lapses, the annuity's rate may change.

Surrender Period

The surrender period is a defined number of years, as specified in your annuity contract, during which you cannot withdraw funds without incurring a penalty.

AM Best Rating

The AM Best credit rating reflects the overall financial stability of an insurance carrier. The score ranges from A++ to D and is issued by the independent credit rating agency AM Best.

Products 1-5 of 734

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Source: Cannex, Jun. 18, 2024

Annuity.org synchronizes and updates annuity products and interest rates multiple times each week from Cannex data.

Product	Rate	Guarantee Period	Surrender Period	AM Best Rating
Safe Harbor Bonus Guarantee Guarantee: 10 Years Surrender: 10 Years Get Started	6.90%	10 Years	10 Years	B+
Safe Harbor Bonus Guarantee Guarantee: 10 Years Surrender: 10 Years Get Started	6.75%	10 Years	10 Years	B+
Safe Harbor Bonus Guarantee Guarantee: 7 Years Surrender: 7 Years Get Started	6.50%	7 Years	7 Years	B+
Safe Harbor Bonus Guarantee Guarantee: 7 Years Surrender: 7 Years Get Started	6.35%	7 Years	7 Years	B+
Safe Harbor Bonus Guarantee Guarantee: 6 Years Surrender: 6 Years Get Started	6.30%	6 Years	6 Years	B+

Products 1-5 of 734

See Also

Should you choose a two or five-year fixed-rate mortgage?5 year fixed rate mortgageIs the 5-year fixed mortgage dead?2 year or 5 year fixed? | Mumsnet

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Case Study: Buying a 5-Year Fixed Annuity

Amy

Age: 62

Amount Invested: $100,000

Amy is planning to retire at the full retirement age of 67. She is satisfied with her current financial situation and doesn’t believe she needs to take risks to push her retirement nest egg higher. But, with a few years to go, she’s interested in finding somewhere to put her money for a little more growth without the risk.

She finds out about a 5-year fixed annuity offering a rate that exceeds 6%. Additionally, the product is tax-deferred. This intrigues her for two reasons: the annuity may grow more effectively than a 5-year CD since the interest will not be taxed each year, and she will be in a lower tax bracket when she retires.

She decides to purchase the annuity with $100,000 of her retirement nest egg. Assuming the 6% interest rate is guaranteed through the five years, Amy can increase the value of her money by more than $35,000 by the time she retires.

5-Year Fixed Annuity vs. Other Term Products

Five-year fixed annuities are often compared to 5-year certificates of deposit (CDs). Both offer safety, protection of your principal and can grow your money in a predictable, guaranteed way.

One big difference is the purpose of each. CDs can be an appealing option in place of a regular savings account, growing money that would otherwise remain stagnant.

On the other hand, 5-year fixed annuities generally serve as retirement products that help you grow your money with the benefit of tax-deferred growth.

Fixed annuities can also pay out in different ways. For example, your contract could be structured to provide you with guaranteed, lifelong payments as well as guaranteed income payments over a certain period, such as 10 or 20 years.

Another benefit that a 5-year annuity could provide is the ability to withdraw all of the money before maturity without incurring any surrender charges in the case of terminal illness or if the contract owner is confined to nursing care. This feature can be particularly beneficial for a client who is 85 years old and seeks guaranteed growth without losing access in times of real need.

See Also

Best Ontario Mortgage Rates 5-Year Fixed - Ratehub.ca

John Stevenson, CFFOwner and Advisor at Stevenson Retirement Solutions

John Stevenson, a Certified Financial Fiduciary®️, specializes in securing retirements with tax-free accounts. With a focus on guaranteed retirement, he’s ensured none of his clients suffer from market fluctuations. As a renowned educator and podcast host, John empowers thousands weekly, sharing his expertise in minimizing taxes and protecting against financial downturns.
Certified Financial Fiduciary®️
Host of the popular Guaranteed Retirement podcast and YouTube channel
Studied Finance and Business

5-Year Fixed Annuity vs. 5-Year CD

Another factor to keep in mind when deciding between a CD or fixed annuity is the length of time. If you are more interested in a significantly short-term product, then a CD of just a few months or even a treasury bond can be strong choices.

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 one- 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: April 5, 2024