Best Fixed Annuity Rates for May 2023

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Fixed annuity rates are up, along with interest rates in general. The best fixed annuity rates currently are 4.60% for a two-year term, 5.65% for a three-year term, 5.50% for a five-year term and 5.45% for a ten-year term.

Here’s what you need to know about fixed annuities.

Key Takeaway

An annuity rate is the amount of interest you receive on money you invest in an annuity. With a fixed-rate annuity, the issuer sets an interest rate that could change over time. However, your contract also specifies a minimum guaranteed rate that stays in effect for the entire term of the contract. Later, your contributions and the interest they’ve earned provide you with lifelong or a fixed number of predictable income payments.

What Is the Best Fixed Annuity Rate in 2023?

As the name suggests, interest rates for fixed annuities are fixed but may be only for a certain period of time. And that time period may not coincide with the surrender period, or the time you will hold the contract before annuitizing. Before you invest, make sure you understand when and how your interest rate can change.

Annuity rates change constantly, so when you’re ready to invest, compare the rates at that time. The following rates are accurate as of May 1, per Annuity Resources.

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Two-Year Annuities

Company Product Rate
Clear Spring Preserve 2 4.60%
Oceanview Harbourview 2 4.60%
Silac Secure Savings Elite 2 4.50%

Three-Year Annuities

Company Product Rate
Silac Secure Savings Elite 3 5.65%
American Life American Classic 3 5.40%
CL Life CL Sundance 3 5.40%
Sentinel Security Life Personal Choice 3 5.40%

Five-Year Annuities

Company Product Rate
Farmers Life Insurance Co. Farmers Safeguard Plus 5 5.50%
CL Life CL Sundance 5 5.50%
Atlantic Coast Life Safe Haven 5 5.45%
Sentinel Security Life Personal Choice 5 5.45%

Ten-Year Annuities

Company Product Rate
American National Palladium MYG 10 5.45%
EquiTrust Certainty Select 10 5.45%
Atlantic Coast Life Safe Haven 10 5.25%
Sentinel Security Life Personal Choice 10 5.25%
Farmers Life Insurance Company Farmers Safeguard Plus 10 5.50%

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What Is a Fixed Annuity?

An annuity is a contract made between an insurance company and an investor. In exchange for premium payments from the investor, the insurance company agrees to pay the investor a certain amount of money in the future. That’s the simple definition, but in reality, today’s annuities are complex investments, so it’s important to understand all the components.

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Annuity Types

Annuities can be either fixed or variable. This refers to the return on the investment within the annuity contract.

Fixed annuities pay a fixed, guaranteed rate of interest. Variable annuities invest premium payments in equities, mutual funds or other variable investments, so the rate of return can vary. Variable annuities usually have some type of minimum guaranteed return.

Premium Payments

An investor can make one payment into an annuity — known as a lump sum or single-premium — or they can make regular payments over time. Payments are made during the “accumulation phase” of the contract.

The other phase is the “payout phase,” during which the insurance company makes periodic payments to the annuitant, usually for the rest of their life.

Annuity Payouts

Annuities may begin making payments immediately or after a period of time. An immediate annuity, as the name suggests, begins paying out right away and can only be purchased with a single premium. Deferred annuities begin making payments at some point in the future.

In either case, annuities are designed to make payments for the rest of the annuitant’s life. For this reason, many people use annuities to provide them with an income stream in retirement, using the annuity as a sort of “personal pension.”

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The amount of the annuity payout depends on a number of factors. It depends on the amount of premium(s) paid into the contract, the rate of return and the age at which the annuitant begins taking payments.

When you begin taking payments, you annuitize the contract. This means that your investment becomes a stream of income, and you will receive payments for the rest of your life. The “lump sum” amount you invested in the contract no longer exists.


Here are two examples that illustrate how annuitization works. Suppose two investors, Jack and Jill, each have a fixed annuity. They each invested $100,000, and with growth, their contracts are now each worth $125,000.

Jack and Jill are now 70 years old. They both annuitize their contracts. They will each get $500 a month for the rest of their lives — this is for illustration only. Jack would likely get a higher payout because, actuarily speaking, men have shorter life expectancies.

Jack dies two years later. He has received $12,000 in annuity payments. There is no death benefit on an annuitized contract, so that’s all he or his beneficiaries will get from his $100,000 investment.

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Jill, on the other hand, lives to age 95. She has received $150,000 in annuity payments, even though her contract had a value of $125,000 when she annuitized it.

Some contracts allow for payments to continue for a “period certain.” This means that payments will be made for a certain period of time or for the rest of the annuitant’s life, whichever comes last. If Jack had selected a “life with 10-year certain” payout option, his beneficiaries would have continued to receive payments for eight more years after he died.

Before You Invest

Before you invest in a fixed annuity, make sure you understand all of its features, benefits and drawbacks. Know what your interest rate will be, and if and when that rate can change. Understand what your options are if you need to withdraw the money prior to annuitizing. Make sure you’re purchasing your annuity from a reputable insurance company. Annuities are not FDIC-insured — they are backed by the insurance company’s ability to pay them.

There are many different fixed annuities, and none of them is right for everyone, but one may be right for you. Understanding all the features and constraints, and recognizing that it’s a long-term investment, is critical to finding the right fixed annuity for your needs.

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  • What is the highest paying fixed annuity rate?
    • As of May 1, 2023, Secure Savings Elite 3 from Silac has the highest available fixed annuity rate at 5.65%, according to Annuity Resources.
  • Who has the best fixed index annuity rates?
    • While Silac offers the current highest rate, Oceanview, Farmers Life and Atlantic Coast Life also offer high rates for varying terms.
  • How much does a $100,000 fixed annuity pay per month?
    • How much a $100,000 annuity pays depends on several factors, such as your age, gender, how you pay into the annuity and how long you want to receive benefits. A female born on June 1, 1960 who makes a $100,000 lump-sum investment might receive one of the following payment amounts:
      • – $528 per month for life
      • – $542 per month, guaranteed for 10 years
      • – $518 per month, guaranteed for 20 years
  • How much does a $300,000 annuity pay per month?
    • A female born on June 1, 1960 who makes a $300,000 lump-sum payment could receive:
      • – $1,583 per month for life
      • – $1,626 per month, guaranteed for 10 years
      • – $1,558 per month, guaranteed for 20 years.
  • Will fixed annuity rates increase in 2023?
    • Fixed annuity rates have been increasing in 2023. If the Fed Rate is increased again, it is likely that fixed annuity rates will also increase.

Daria Uhlig contributed to the reporting for this article.

Information is accurate as of May 1, 2023, and is subject to change.

Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.

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About the Author

Karen Doyle is a personal finance writer with over 20 years’ experience writing about investments, money management and financial planning. Her work has appeared on numerous news and finance websites including GOBankingRates, Yahoo! Finance, MSN, USA Today, CNBC,, and more.
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