Today's Best Annuity Rates – May 5, 2026

Annuity rates held steady across most terms today, with the 5-year MYGA segment leading the way at 5.85%. Indexed annuity cap rates ticked higher at the 7-year and 10-year ends as carriers responded to last week's Treasury move. Below you'll find today's best fixed and indexed offers, a plain-English explainer of how the rates actually work, and a short checklist for comparing them.

Today's best rates at a glance

• 3-Year MYGA — 5.40%
  Aspida Life · AM Best A-
• 5-Year MYGA — 5.85%
  Oceanview Life · AM Best A-
• 7-Year MYGA — 5.95%
  Athene Annuity · AM Best A+
• 10-Year MYGA — 6.10%
  Nassau Life · AM Best B++
• 7-Year Indexed (Cap) — 10.50%
  Axonic Insurance · AM Best A-
• 10-Year Indexed (Cap) — 10.75%
  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 (also called a MYGA, or multi-year guaranteed annuity), the rate is locked in for the life of the term — just like a CD, but issued by an insurance company instead of a bank. With an indexed annuity, the rate is variable: your contract is credited interest based on the performance of a market index (most often the S&P 500), with caps and other limits set by the carrier.

How fixed and indexed annuity rates work

A MYGA rate is the simplest of the two. The carrier guarantees a flat annual yield — say 5.85% — for the entire term, and your principal grows tax-deferred until you withdraw. There is no market exposure either way.

Indexed annuity rates are quoted differently. Instead of a flat rate, you get three levers:

• Cap rate — the maximum interest credited in any one period. A 10.50% cap on the S&P 500 means you earn the index return up to 10.50%, then nothing more.
• Participation rate — the percentage of the index gain you receive. A 75% participation rate on a 12% market gain credits you 9%.
• Spread (or margin) — a percentage subtracted from the index gain before crediting. A 2% spread on a 10% gain credits you 8%.

What happens when the market goes down?

This is the headline feature of an indexed annuity: in a year the index loses money, your credited interest is zero, never negative. Your principal and any prior credits are protected by the carrier. You give up some of the upside (via the cap, participation, or spread) in exchange for that downside floor. With a MYGA, the question doesn't apply — the rate is fixed regardless of what markets do.

Why annuity rates change

Carriers price annuities off the bond market. When 10-year Treasury yields rise, insurers can buy higher-yielding bonds in their general account, and they pass some of that yield through as higher MYGA rates and indexed caps. When yields fall, the reverse happens. Carrier-specific factors matter too — capital position, hedging costs on indexed products, and how aggressively a carrier is trying to grow market share.

What moved today

Yields on the long end of the curve nudged higher, giving carriers room to lift 10-year MYGA offers by 5 to 10 basis points. Cap rates on indexed contracts also improved at the longer terms, while shorter-duration products held flat. Athene's 7-year MYGA reclaimed the top spot in its term after a brief week below Nassau Life.

How to compare today's offers

• Term — longer terms generally pay more, but lock you up longer. Match the term to when you'll need the money.
• Carrier strength — the AM Best rating tells you how financially sound the insurer is. Anything below B++ deserves extra scrutiny.
• Surrender schedule — most contracts charge a percentage if you withdraw above the free amount. Make sure you know the schedule before you sign.
• Free withdrawal — most contracts allow 10% per year penalty-free. Some are more generous.
• Riders — income riders, death benefit riders, and similar add-ons cost basis points. Decide if you actually need them.

Are higher rates always better?

No. A small rate premium is not worth taking on a weaker carrier or a longer surrender period than you can comfortably tolerate. The rate is one input — carrier quality, contract terms, and how it fits the rest of your retirement plan are the others.

The bottom line

Today is a solid day to lock in a MYGA at the 5- to 10-year part of the curve, with several A-rated carriers within five basis points of one another. Indexed cap rates of 10.50%+ at 7 years and beyond are competitive by historical standards.

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.