Today's Best Annuity Rates – May 4, 2026
Carriers reset short-end MYGA pricing after last week's auction; 5-year leader holds at 5.80%.
The week opened with several carriers refreshing their MYGA rate sheets. The 5-year segment continues to attract the most competition, with three carriers within five basis points of the leader at 5.80%. Below are today's best fixed and indexed offers, plus a refresher on how to read them.
Today's best rates at a glance
- 3-Year MYGA — 5.35%
Aspida Life · AM Best A- - 5-Year MYGA — 5.80%
Oceanview Life · AM Best A- - 7-Year MYGA — 5.90%
Athene Annuity · AM Best A+ - 10-Year MYGA — 6.00%
Nassau Life · AM Best B++ - 7-Year Indexed (Cap) — 10.25%
Axonic Insurance · AM Best A- - 10-Year Indexed (Cap) — 10.50%
American Life & Security · AM Best B++
What is an annuity rate?
An annuity rate is the interest your contract earns each year. With a fixed annuity (a MYGA, or multi-year guaranteed annuity), the rate is locked in for the term — similar to a CD, but issued by an insurance company. With an indexed annuity, the rate is variable: interest is credited based on the performance of a market index, subject to caps and other limits the carrier sets.
How fixed and indexed annuity rates work
A MYGA pays a flat annual yield for the entire term, with no market exposure. An indexed annuity quotes its rate through three levers:
- Cap rate — the maximum credited rate in a period. A 10.25% cap on the S&P 500 means you earn the index return up to that ceiling.
- Participation rate — the percentage of the gain you receive. 80% participation on a 10% market gain credits you 8%.
- Spread — a percentage subtracted from the gain before crediting. A 1.5% spread on a 9% gain credits you 7.5%.
What happens when the market goes down?
In a down year, an indexed annuity credits zero — never negative. Your principal and any previously credited interest are protected. You give up some of the upside through the cap, participation, or spread, in exchange for that downside floor. A MYGA is unaffected by markets either way.
Why annuity rates change
Carriers price annuities off the bond market. When Treasury yields rise, insurers earn more on the bonds they hold to back contracts, and pass some of that through as higher MYGA rates and indexed caps. When yields fall, rates compress. Carrier-specific factors — capital strength, hedging costs, and growth appetite — also matter.
What moved today
Aspida and Oceanview each trimmed 3-year offers by five basis points overnight, while the 7- and 10-year leaderboards were unchanged. Indexed cap rates were stable across the board. Watch the 5-year segment tomorrow — a third carrier may move in below the top of the table.
How to compare today's offers
- Term — match the contract length to when you'll actually need the money.
- Carrier strength — AM Best ratings are the standard shorthand. Anything below B++ deserves extra scrutiny.
- Surrender schedule — know the percentage charged for early withdrawal above the free amount.
- Free withdrawal — most contracts allow 10% per year without penalty.
- Riders — income or death benefit riders add cost. Buy them only if you'll use them.
Are higher rates always better?
No. A small premium isn't worth a weaker carrier or a surrender period you can't tolerate. Rate is one input among several — evaluate the whole contract.
The bottom line
Today's 5-year MYGA market is unusually competitive, which is a good sign for buyers. If you're shopping that term, get quotes from at least three carriers — the spreads are narrow enough that small differences in surrender terms or rider features may matter more than the headline rate.
Not all insurers and rates are available in all states. Product features, benefits, and options for liquidity or income can vary widely. Rates shown are accurate as of the date of this post and subject to change without notice.
FAQs
What is a multi-year guaranteed annuity (MYGA)?
- A MYGA is a fixed annuity contract that locks in a guaranteed interest rate for a set number of years, usually between 3 and 10.
- Your principal grows tax-deferred at the agreed rate for the entire term, regardless of what the market does.
How is the rate guaranteed?
- The rate is contractually guaranteed by the issuing insurance carrier for the full term.
- It does not float with market rates, so it won't rise if rates climb or fall if they drop.
What happens at the end of the term?
- You can take the full value as a lump sum, renew at the carrier's then-current rate, or roll into another annuity tax-free via a 1035 exchange.
- Most carriers send a notice 30–60 days before maturity outlining your options.
Can I withdraw money during the term?
- Most contracts allow penalty-free withdrawals of up to 10% of the account value each year.
- Withdrawals above the free amount usually trigger a surrender charge that decreases over the term.
Is my principal safe?
- Yes — your principal and credited interest are guaranteed by the issuing carrier's financial strength.
- State guaranty associations also provide a limited backstop in the unlikely event the carrier becomes insolvent.
Cassie Jensen is a Certified Public Accountant (CPA) specializing in retirement taxation and income planning. With deep expertise in the intersection of tax law and investment vehicles, she helps consumers navigate the complexities of decumulation strategies.