Annuity Rate Guide — Get More Money and Avoid Buyer's Remorse
The spread on annuity rates for the same product and person can be big: up to 20%. On a typical annuity purchase, which tend to be $100k or more, this can mean thousands of dollars every year, sometimes for the rest of your life.
We're going to share some of our 40+ years of experience, breaking down each type of annuity rate, what it means in plain English, and how to avoid marketing traps.
4 Annuity Rates You'll Encounter
Even though they are all annuities, different types of annuities have different rates. There are:
- Payout Rates: The amount of money you are paid each month
- Interest Rates: The interest you earn on your money
- Cap or Participation Rates: How much money you earn from a market index
- Rollup Rate: How much a benefit value is guaranteed to grow by
You can expect the following rates for each annuity type:
- Immediate Annuity: Payout Rates
- Deferred Income Annuity: Payout Rates
- Multi-Year Guarantee Annuity: Interest Rate (guaranteed rate)
- Fixed Index Rate: Cap or Participation Rate, Rollup Rate
- Secondary Market Annuity: Payout Rate, Interest Rate
Why Don’t Immediate Annuities Have Interest Rates?
While other products, like a multi-year guarantee annuity, show guaranteed interest rates, immediate annuities and deferred income annuities show payout rates instead. Check this article out if you want to know more about what a payout rate is.
With a lifetime immediate annuity, your earned interest normally depends on how long you live. The longer you live, the higher your effective interest rate.
What Are Immediate Annuities Paying?
You can find out what immediate annuities are paying by running a free annuity quote. Just use our blue quote calculator on this page. Our quotes are free, fast, and easy to understand. Best of all, no phone number is required and there is no obligation.
To give you an idea of what annuities are paying, check out our payout table for 65 year olds below. Or head over to our annuity rates by age page to see a more complete list.
Immediate Annuity Rates — Age 65
| Annuity Type | Male Best | Male Avg | Female Best | Female Avg | |||||
|---|---|---|---|---|---|---|---|---|---|
| Age 65 - Single Life Only | Single Life Only | $685 | $633 | $642 | $607 | ||||
| Age 65 - Single Life with 5 Years Certain | Single Life with 5 Years Certain | $678 | $634 | $644 | $607 | ||||
| Age 65 - Single Life with 10 Years Certain | Single Life with 10 Years Certain | $661 | $622 | $634 | $599 | ||||
| Age 65 - Single Life with 15 Years Certain | Single Life with 15 Years Certain | $640 | $603 | $620 | $586 | ||||
| Age 65 - Single Life with 20 Years Certain | Single Life with 20 Years Certain | $614 | $579 | $602 | $568 | ||||
| Age 65 - Single Life with Cash Refund | Single Life with Cash Refund | $644 | $603 | $622 | $585 | ||||
| Age 65 - Single Life with Installment Refund | Single Life with Installment Refund | $649 | $606 | $628 | $588 | ||||
Annuity rates were surveyed as of June 3, 2026 and are illustrative only. These examples are based on a $100,000 premium and do not include state-specific premium taxes. Annuity rates change often and without notice. To get your guaranteed annuity rate, run custom quotes using our annuity calculator.
Are Fixed Index Annuity Rates Better Than Multi-Year Guarantee Annuity Rates?
Today's Best
Multi Year Annuities
Deferred Annuity table
| Company / Product | Rate | Yrs. |
|---|---|---|
| Revol OneDirectGrowth 10 | 6.00% | 10 |
| Liberty Bankers LifeHeritage Elite 9 | 5.50% | 9 |
| Oxford LifeMulti-Select 8 | 5.35% | 8 |
| Revol OneDirectGrowth 7 | 6.00% | 7 |
| Oxford LifeMulti-Select 6 | 5.70% | 6 |
| AxonicAxonic Waypoint 5 | 5.70% | 5 |
| Oxford LifeMulti-Select 4 | 5.25% | 4 |
| AxonicAxonic Waypoint 3 | 5.45% | 3 |
| AxonicAxonic Waypoint 2 | 5.00% | 2 |
Fixed Index Annuities (FIAs) tend to have very attractive looking “rollup” rates. These draw people in with high guarantees, but these rates are not applied to actual money. Instead they are applied to your “benefit value”, which is a hypothetical value used for calculating payouts, not real money. We have an article dedicated to helping you understand FIA rates to avoid common annuity mistakes.
Fixed Index Annuities actually credit your account value (your real money) with cap or participation rates that are benchmarked against a market index. This means that your earnings are dependent on market performance, even if the insurer is protecting your downside. On top of that, many FIA rates are not guaranteed for the term of your annuity; the insurer can change them.
Multi-Year Guarantee Annuities (MYGAs), on the other hand, offer a fixed interest rate guaranteed for the term of your annuity. This offers a lot more certainty when it comes to retirement planning: you know exactly what you are getting.
As a result, many of our clients prefer multi-year guarantee annuities for their simplicity and certainty. On top of that, MYGAs often offer better rates than CDs.
In a nutshell:
- Multi-Year Guarantee Annuities: guaranteed rate for entire term
- Fixed Index Annuity: range-bound rates dependent on market performance
Can You Compare Annuity Rates?
Yes, and you absolutely should. We work with over 30 companies and there is normally a large spread in annuity rates; sometimes 20% for the same exact type of annuity. This means some companies are pricing more competitively. Not shopping around could literally cost you thousands.
However, make sure you are doing the following when comparing annuity rates:
- Compare Apples to Apples: make sure the annuity rates you are comparing are for the same type of product. A MYGA that guarantees 5% is much different from a FIA with an 8% cap rate. In the end, the MYGA could win depending on markets.
- Don’t Get Caught Up in Marketing: Sure a guaranteed 12% rollup sounds great. But that’s not real money, and if you’re not using your income rider it’s pretty much useless.
- Check Insurance Company Ratings: Annuity rates are guaranteed by the insurer. Check our insurance company ratings to ensure you are choosing a company with a strong financial background.
- Understand What The Rate Is: A 22% payout rate on a 5 year period certain annuity sounds great! But a payout rate is not an interest rate. A payout rate under 20% for a 5 year period certain annuity would mean you are losing money.
- Ask For Help From an Expert: Call our annuity experts at (866) 866-1999. We can help you compare annuity rates in clear, simple terms. We want to help you to understand your options without any sales pressure.
The Bottom Line
Annuity rates are not all the same thing. You could easily end up making more money with a MYGA offering 5% than a FIA with a 12% rollup. And if you're not using an income rider, a 12% rollup doesn't help you at all.
Income annuities, on the other hand, don't use interest rates, they use payout rates. Payout rates tell you how much income you get, not how much interest you're making.
You should always comparison shop. This is key to getting the most for your money. We routinely see rates for the same product with 20% spreads, which translates to significant money when it comes to large annuity premiums. Make sure you compare apples-to-apples, and keep in mind the financial stability of the insurer.
If you feel lost, ask for help! Our annuity experts are here to help you. Call us at (866) 866-1999. We promise to give you honest answers to your annuity questions without any sales pressure.
What changes annuity rates?
Annuity rates tend to change based on how fixed income vehicles are performing in the market. They have a strong correlation with long-term, highly rated bonds, like Moody's Aaa Corporate Bonds. When bonds go up, insurers can pay higher rates. For more information, check out our annuity trends page.
Do immediate annuities have an interest rate?
Most immediate annuity quotes do not include their underlying interest rates. Instead, they publish the payout rate you would receive. The reason for this is that lifetime immediate annuities pay for your entire lifetime, so your effective interest rate depends entirely on how long you live.
Who has the best annuity rates now?
The spread on annuity rates can be big. Often times the top paying company is 20% higher than the lowest. However, there are just too many products and variables to say who is the best. Instead, you should comparison shop by using a quote comparison tool like the blue annuity calculator on our website. Our quotes are fast, easy, and free.
How often do annuity rates change?
This depends entirely on the insurance company. Some insurers change their rates weekly, bi-weekly, monthly, or at their own discretion. We've seen insurers who haven't changed their rates in years, and others who change them every week.
Is the annuity rate or insurance company rating more important?
Both are important, and you should seek to balance them. You want to get the most for your money, so finding a good rate is key. However, the insurance company must be able to pay out its annuity contracts, so you also want to go with a highly rated insurer.
