Compare Fixed Index Annuity Rates
| CompanyProduct | Rate | Term | More Info |
|---|---|---|---|
Pacific Life
Index Foundation
|
7.75% Cap Rate Cap Rate Guaranteed For Surrender Period | 5 yrs | More Info |
Prudential
SurePath Income
|
8.0% Simple Rollup On Income Rider | 10 yrs | More Info |
MassMutual Ascend
American Legend 7
|
8.75% Cap Rate S&P 500 1-Year Point to Point Strategy | 7 yrs | More Info |
Symetra
Edge Elite 5
|
9.25% Cap Rate S&P 500 Annual Strategy | 5 yrs | More Info |
Oceanview
Caplock FIA 5
|
8.75% Cap Rate Cap Rate Guaranteed For Surrender Period | 5 yrs | More Info |
What is a fixed index annuity?
At its core, a fixed index annuity is a retirement vehicle that allows you to enjoy some of the stock market's upside potential while protecting you from losses.
Fixed index annuities provide a number of other benefits:
- Market-based earnings potential
- Loss protection
- Tax-deferred growth
- Lifetime income options
New to Fixed Index Annuities?
If you're new to fixed index annuities, you can learn more about them through some of our articles below:
- Beginners Tutorial to Fixed Index Annuities
- Frequently Asked Questions About Indexed Annuities
- Indexed Annuity Rates Explained
- All About Fixed Index Income Riders
- What to Consider When Shopping for a Fixed Index Annuity
A Quick Primer on Fixed Index Annuities
One thing that constantly trips people up about fixed index annuities are their different rates and terms. Here's a brief outline of them:
- Cap Rates: the most earnings your annuity can be credited with.
- Participation Rates: the percentage of your index returns your account earns.
- Premium Bonuses: A one-time bonus added to your annuity, can be applied to either your benefit or accumulation value.
- Rollups: A guaranteed return, often only applied to your benefit value — not a cash value.
There are a few other terms you should know as well:
- Surrender Charges: the penalty imposed if you remove more money than allowed early.
- Term/Surrender Period: the length of the contract, often tied to the surrender charge schedule.
- Income Rider: an addendum to your contract that allows you to turn your annuity into a guaranteed income stream. Income riders are not always free.
- Accumulation Value: the actual cash value of your annuity.
- Benefit Value: a hypothetical value used to calculate the income stream you could receive from an income rider.
How do fixed index annuities differ from other annuities?
While fixed index annuities have a variety of uses, from growing your money to providing guaranteed lifetime income, if you have a specific goal for your annuity money, another type may work better.
If you are looking for guaranteed income or guaranteed growth, consider a:
- Multi-Year Guarantee Annuity: competitive, guaranteed interest rates
- Immediate Annuity: immediate guaranteed income
- Deferred Income Annuity: future guaranteed income
- Qualified Longevity Annuity Contract: future guaranteed income with special tax benefits
- Secondary Market Annuity: competitive income for a defined term
Need help with Fixed Index Annuities?
While fixed index annuities can accomplish a lot, this breadth can make them complex. For that reason, we suggest you reach out to our U.S.-based annuity experts at (866) 866-1999 or contact us before you make a decision about a fixed index annuity.
We have decades of experience with annuities and have helped thousands of people find the right annuity. Customer service is at the core of what we do. Just check out our customer reviews.
We'd love to hear from you!
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Comments (42)
Kyle
2026-04-21 14:27:15
Hi Ron,
If your annuity is issued as a Traditional IRA, then you can absolutely transfer it out to any other Traditional IRA. It does not have to remain inside an annuity. However, if you are still within the surrender charge period of your annuity, you could face penalties for surrendering prematurely.
You should speak with your insurance company and confirm whether you are able to surrender the contract without any surrender penalties or market value adjustments applied.
Best regards,
Kyle
Ron
2026-04-20 17:55:13
Can you transfer money from your annuity to an IRA or other investment without incurring penalties or significant tax liability?
Kyle
2025-09-09 09:31:10
Hi John,
Thank you for reaching out.
Yes, you can do a 1035-exchange from a MYGA into a FIA.
Best regards,
Kyle
John Albert R.
2025-09-08 12:28:02
Can you do a 1035 exchange out of a MYGA into a FIA?
Kyle
2024-03-11 11:19:05
Hi Bill,
Yes, you can generally do this as long as your current annuity is out of its surrender charge period. This would be done either by 1035-exchange (if the annuity is non-qualified) or transfer (if the annuity is qualified).
Please give us a call at (800) 872-6684 if you have any additional questions.
Best regards,
Kyle
Bill
2024-03-11 09:17:10
can you transfer one annuity to another
Ed S.
2024-02-07 10:22:53
I have two fixed indexed annuities. Would a one percent riders fee. I understand I have to pay these fees for the life of the annuity. I'm hoping my index is that I'm in will give me a fairly good return so I could get some of that back
Kyle
2023-07-25 16:28:11
Hi Richard,
Yes, you can purchase an FIA with IRA monies. The annuity itself will be issued as an IRA, so the purchase is not a taxable event. It is just a trustee-to-trustee IRA transfer.
Best regards,
Kyle
Richard
2023-07-23 16:32:26
Can an FIA be purchased as, or within, an IRA?
I expect the markets to tank hard by this time next year, so I am mostly in cash earning almost the Fed Funds rate. Is the best time to buy the FIA now or about the time I think the markets have bottomed?
Thanks!
Kyle
2023-01-18 08:59:35
Hi John,
Thank you for reaching out!
You'll find our fixed rate annuity rates here:
https://www.immediateannuities.com/deferred-annuities/
Best regards,
Kyle
John
2023-01-15 10:27:23
Do you have rates for Fixed rate Annuities 5and 7 Years
Kyle
2022-08-04 09:56:04
Hi Joni,
Generally, the beneficiary will be provided several options for receiving a death benefit. If they elect to take a lump sum death benefit, then any applicable taxes would apply in that tax year.
However, there should be an option to have the death benefit paid out over a number of years to lessen the tax burden.
- Kyle
Joni
2022-07-30 11:26:30
What are the tax consequences for the beneficiary receiving the death benefit? Can it be taken over time? Is it given all at once with dire tax consequences?
Hersh Stern (ImmediateAnnuities.com)
2019-09-16 12:25:32
Hi Lewis,
The answer is yes. However, the floor rate is usually 0%. This is just to ensure that you do not lose any money from the index going negative.
-Hersh
Lewis
2019-09-16 12:24:57
Is there a "floor" or minimum rate for index annuities?"
Hersh Stern (ImmediateAnnuities.com)
2019-03-29 11:41:24
Hi Robin,
It will depend on the nature of your withdrawal. Most fixed index annuities will allow you to withdraw up to 10% of the annuity's value each year (starting in the second contract year), free of any penalty. Therefore, you will only be penalized if you need to withdraw greater than 10%.
-Hersh
Robin
2019-03-29 11:40:09
If I roll over my 401K into an annuity, in the event I need to withdraw some funds, I would get penalized?
Ram S.
2018-09-25 18:56:47
Very interesting and informative, understandable (mostly) article I have ever read! The question answers are equally very useful because some questions asked were my questions too. Obviously selecting an annuity requires a lot of thought and depends upon how, when etc you need money in future. Never knew about the Annuity used within IRA, circumventing withdrawal penalty etc!
Hersh Stern (ImmediateAnnuities.com)
2016-02-24 14:21:48
Hi John-
You asked a rather complex question that has many facets. I suggest you consult with a fee-only financial planner to review your retirement goals, etc.
Very briefly, purchasing a fixed index annuity will definitely protect you from any downside risk during the term of the annuity. On the flip side, your gains will be "capped," so a fixed index annuity will never not have the growth potential of an index fund. A fixed index annuity should be considered a conservative investment, similar to a multi-year guaranty deferred annuity. Most of our clients who buy FIAs want to completely eliminate their downside risk while earning a conservative tax-deferred interest rate.
Hersh
John
2016-02-24 14:20:45
If I want lifetime income in the future should I invest in an index annuity or an index fund. Your thoughts?
Hersh Stern (ImmediateAnnuities.com)
2016-01-11 09:47:30
Hi Chris-
From your description of how a FIA works I wonder if an agent explained FIAs incorrectly to you or that you misunderstood what you heard (or read). For an annuity to both provide you with a monthly income and a death benefit of your full original principal paid to your beneficiaries, that annuity would not be able to distribute to you each month more than it earned that month.
I'll give you an example: Say you invested $100,000 in an annuity which paid you 3% interest a year. The annual interest would be $3,000. If that interest was paid to you monthly you'd get $250 each month (approximately, because the monthly interest and annual interest are calculated differently, but that's a separate conversation).
Notice, if you started with a $100,000 account balance and earned $250 in interest during the month and then withdrew $250 at the end of the month, your account balance at the beginning of the second month would again be $100,000. In this situation, you would be preserving the principal all the time for your beneficiaries and on your death the insurance company could pay them $100,000. But while you were living you could draw down more than the amount of interest you earned each month.
There is an annuity that does what I just described. It's called a multiyear deferred annuity or MYGA, for short. The interest rates on MYGAs these days are around 3% for a 10 year contract.
Now you may have read claims or seen advertisements for FIAs which promised 6% or even 8% withdrawals. Those may exist, BUT.... NOT while preserving the full principal for your beneficiaries. That would be like burning the candle at both ends and expecting the candle to not get any shorter!
You may have also read that with a FIA your account balance will never lose value due to a drop in the stock market. That's generally true. But your annuity *WILL* begin to lose value just as soon as you start withdrawing your monthly income payments from it.
To reiterate, if you are looking to purchase an annuity that retains your full principal while paying you some income, it will have to be an annuity where you're only drawing down the amount of interest the annuity earned that month. Such a MYGA contract will generate less in monthly income than an annuity that pays you some principal plus interest each month, which you can get from an immediate annuity or an FIA.
So you'll need to choose which goal is more important - generating a maximum lifetime income for you and your spouse or preserving your entire principal to pass on to your beneficiaries.
Hersh
Chris
2016-01-11 08:21:04
Am I wasting my time thinking that a FIA is the simple answer to my question about getting an investment option that protects my principal, gives me a guaranteed monthly income(fixed or potential to grow more than the guaranteed amount) and is transferable to my wife or children upon my demise?
Hersh Stern (ImmediateAnnuities.com)
2016-01-07 12:09:07
Hi Scott -
YES. That kind of annuity is called a flexible premium annuity (as compared to a single premium annuity). Many popular categories of annuities are available both as single and/or flexible premium contracts. These include Deferred Income Annuities (DIA) and Fixed Index Annuities (FIA). However, neither immediate annuities nor multiyear guaranty deferred annuities accept multiple deposits.
Hersh
Scott
2016-01-07 12:08:35
Is there an annuity that you can make monthly payments to?
Hersh Stern (ImmediateAnnuities.com)
2015-07-28 14:51:08
Hi Linda-
Our company doesn't "push" index annuities (like some of the tv commercials promising 10% gains do). Rather if an annuity is called for we can review any type of fixed annuity with you. And, we do have many customers who've bought index annuities through our service.
Sometimes index annuities get panned because of the high commissions agents earn from an FIA sale. We're quite transparent when it comes to commission disclosures vis a vis index and other types of annuities. Have a look here:
https://www.immediateannuities.com/annuity-commissions/
In fact, we link to this page in the navigation pull down bar at the top of every page in our site! Click the "News" tab and click "annuity commission."
If you'd like to discuss index annuities with me please call. I will compare FIAs with deferred income annuities to show you which offers a better solution for your situation. I'm really agnostic about either type because I sell both. Often the index-annuity-pushing agents like JD Mellberg only market the one type of high commission annuity and then bad-mouth the other types. I offer a "fair and balanced" approach to this question.
Hersh
Linda
2015-07-28 14:49:37
In general a lot of people think that a variable or indexed annuity is a bad idea. Do you concur?
Hersh Stern (ImmediateAnnuities.com)
2015-06-25 14:27:52
Hi Jim-
It's difficult to answer your question without knowing a lot more about your overall finances and retirement plan. So I invite you to call or email me to schedule a free, no obligation phone consultation.
Regarding buying an index annuity for income, it will depend a lot on when you plan to start receiving income. If immediately, or within a year or two, it's likely the indexed annuity will not offer you as much income as an immediate or deferred income annuity would.
You can read more about immediate annuities here:
https://www.immediateannuities.com/immediate-annuities/
and deferred income annuities here:
https://www.immediateannuities.com/deferred-income-annuities/
It's also important to know that a "roll-up" rate is not an interest rate and that your annuity stops "rolling up" as soon as you begin to withdraw income.
-Hersh
Jim
2015-06-25 14:25:59
I am considering a fixed indexed annuity with 6.00% roll up. Is this rate really guaranteed? The salesman said there is a 0.95% rider fee. Is this a good idea?
Hersh (ImmediateAnnuities.com)
2015-06-24 11:57:00
Hi John-
The income rider is arguably the most misunderstood element in an indexed annuity. The 6.5% you mentioned is probably the "roll-up" rate. For each year that you postpone withdrawing lifetime income, your "income account" value grows by 6.5%. Keep in mind that this 6.5% is not earned interest that you can withdraw in a lump sum. Your account's cash value does not reflect this number. The income account value is only used in determining how much income you can withdraw when you elect to start receiving a lifetime income.
-Hersh
John
2015-06-24 11:55:41
If the income rider is 6.5% for 10 years is that 6.5% of the final balance at the end of the surrender charge year or time of withdrawal?
Hersh Stern (ImmediateAnnuities.com)
2015-06-24 11:55:09
Hi W.-
Yes. A cap rate is the maximum amount of interest that is credited to your annuity each year. For example, if you have an annual point-to-point cap rate of 5% and the S&P 500 goes up 10% that year, your annuity will be credited with 5% interest.
-Hersh
W.
2015-06-24 11:54:01
Does Cap rate mean the max I will earn annually?
Hersh Stern (ImmediateAnnuities.com)
2015-06-24 11:53:25
Hi Corey-
No! A premium bonus is a percentage credited to your annuity at the time you buy the annuity. It's usually paid one time only. For example, if your annuity offers a 5% premium bonus and your premium is $100,000, your premium bonus will equal $5,000. Your premium bonus percentage has nothing to do with how future interest is credited.
-Hersh
Corey
2015-06-24 11:52:25
Does the Premium Bonus mean the rate of return I will receive as a bonus every year based on whatever the market does that year? For example, if the market increases 25%, and the premium bonus is 10%, do I now earn 10% of the 25% (i.e., 10% times 25%) which is a 2.5% bonus?
Hersh Stern (ImmediateAnnuities.com)
2015-05-28 13:23:28
Hi Carmelita-
You would consider adding an income rider to your indexed annuity if you wanted to generate a future lifetime income stream. If you have no intention of creating future lifetime income from your annuity, there might not be a reason to add the rider. This is especially true when an insurance company charges an annual fee to have the rider. Some companies may reduce your annual earnings by as much as 1.00% a year in exchange for the right to exercise a lifetime income rider down the road.
If you're certain that you'll be withdrawing lifetime income payments from your annuity at a specific date or age, there may be more competitive options for you than an indexed annuity. For example, some deferred income annuities will guarantee a higher monthly payment than you can get from an index annuity.
Hersh
Carmelita
2015-05-28 13:20:31
Is an income rider good to attach to my annuity ? What is the benefit of having a rider?
Hersh Stern (ImmediateAnnuities.com)
2015-05-15 13:59:17
Hi Edward-
When you start withdrawals from an index annuity no exclusion ratio is applied to the income payments you receive even if the payments derive from the exercise of an income rider.
The IRS considers all payments received from a non-qualified index annuity to be first a withdrawal of interest (earnings or gains) and only after all the interest is removed, then the balance is considered withdrawals of after-tax cost basis.
The exclusion ratio treatment only applies to payments from immediate annuities or deferred income annuities.
You can find additional information about immediate annuities here:
https://www.immediateannuities.com/immediate-annuities/
And deferred income annuities here:
https://www.immediateannuities.com/deferred-income-annuities/
Hersh
Edward
2015-05-15 13:56:37
When I start the income rider on an index annuity does an exclusion ratio apply to my payments or is all the income taxed at once?
Hersh Stern (ImmediateAnnuities.com)
2015-03-13 13:37:03
Hi Sheila-
By "duration" I'm assuming you mean the length of the surrender fee period. An important reason for selecting an annuity with a shorter surrender period would be that you contemplate exchanging your first annuity for a different insurance company's annuity when there are no more surrender fees.
Since you plan to withdraw a lifetime income from your annuity, you may want the flexibility to "annuitize" with the company that pays you the most at the time you start to withdraw income.
On the other hand, if you are sure you are going to exercise the income rider of an indexed annuity, it might be better to select a longer-term annuity. Many indexed annuities with long surrender periods also pay you a premium bonus to sign up, which will increase the amount of income you can eventually withdraw.
Hersh
Sheila
2015-03-13 13:00:07
I am about 8 years from retirement and have been researching index annuities with income riders. Is it better to look at annuities with a shorter duration (5-7 years), or take a longer term annuity for 12-14 years?
Hersh Stern (ImmediateAnnuities.com)
2015-02-25 13:31:19
Hi Nelson-
Index annuities are a conservative type of annuity when compared with variable annuities. This is because an index annuity cannot go down in value, even if the underlying benchmark index dropped by 50%! That's because of an index annuity's downside protection. On the other hand, I consider an index annuity a conservative investment due to a cap placed on how much interest you can earn in a given year, even when your benchmark stock index improves by 50! For example, your indexed annuity might have an annual point-to-point cap rate of 5.00%. This means that even if your index goes up 50% you only receive 5% interest that year. So index annuities have very little volatility compared to variable annuities.
With variable annuities, you are directly invested in the market. The value of your annuity will go up and down. You don't have caps on the upside, but you also don't have any downside protection.
Regarding the GLWB rider - these are treated vary similar in both index and variable annuities. They're designed to guarantee a certain monthly income for life, independent of the performance of the markets.
I hope I've answered your questions to your satisfaction.
Hersh
Nelson
2015-02-25 12:47:07
What is the difference between an index annuity and a variable annuity with a GLWB (Guaranteed Lifetime Withdrawal Benefit) rider? Are indexed annuities any safer, in terms of market downside loss?