Best Fixed Annuity Rates for November 2023

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Retirement expenses can be unpredictable. A surge in healthcare costs or an unexpected bill can wipe out your savings. Inflation can stretch your budget, and volatility in the market can lower your returns. That’s why some retirees include annuities in their financial plans. These low-risk, low-return insurance products can generate a predictable stream of income to supplement other retirement funds.

Read: 3 Things You Must Do When Your Savings Reach $50,000

With a fixed annuity, you’re guaranteed a minimum interest rate for the period specified in the contract. The higher the interest rate, the more your money can potentially grow.

What Is the Best Fixed Annuity Rate in 2023?

The recent round of inflation may not have been good for your wallet, but rising interest rates mean insurance companies can pay higher payouts to annuity holders. The best fixed annuity rates currently are 5.65% for a two-year term, 5.90% for a three-year term, 6.15% for a five-year term and 6.05% for a 10-year term.

The following fixed annuity rates are accurate as of Nov. 6, 2023, per Annuity Resources.

Best 2-Year Annuity Rates

OceanviewHarbourview 25.65%
AspidaSynergy Choice 25.20%
Clear SpringPreserve 24.35%
SilacSecure Savings Elite 23.90%
SilacSecure Savings 22.60%

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Best 3-Year Annuity Rates

AspidaSynergy Choice 35.90%
F&G Annuities & LifeGuarantee Platinum 35.70%
S.USA LifeSelect Choice 1 (3)5.70%
Atlantic Coast LifeSafe Haven 35.68%
American LifeAmerican Classic 35.66%

Best 5-Year Annuity Rates

Delaware LifePinnacle Plus 56.15%
AspidaSynergy Choice 55.90%
S.USA LifeSelect Choice 1 (5)5.90%
F&G Annuities & LifeGuarantee Platinum 55.85%
NassauMYAnnuity 5X5.85%

Best 10-Year Annuity Rates

Delaware LifePinnacle Plus 106.05%
EquiTrustCertainty Select 106.00%
Royal Neighbors of AmericaMYGA 105.85%
Oxford Life Insurance Co.Multi-Select 105.85%
Clear SpringPreserve 105.60%

Although interest rates for fixed annuities are fixed, the insurance company still can raise or lower rates during the contract period. The fixed part of the rate is the guaranteed minimum rate described in the contract. The advertised rate when you purchase the annuity 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.

Annuity rates change regularly, and fixed annuities see the greatest impact from the Fed’s rate. This is why insurers were able to increase payments for annuities in 2022 when the Fed started raising interest rates to combat inflation.

However, the Fed’s actions aren’t the only factor insurers consider when setting interest rates for fixed annuities. Before you invest, make sure you understand when and how your interest rate can change and compare the rates at that time.

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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 a certain amount of money in the future. A fixed annuity comes with a guaranteed minimum interest rate — set by the insurance company providing the annuity, which means you can better predict the amount of income it will produce.

Fixed annuities differ from variable annuities, which invest premium payments in equities, mutual funds or other variable investments. This is why the rate of return for these products can vary.

How Fixed Annuities Work

Annuity contracts have two distinct phases: accumulation and payout. During the “accumulation phase” of the contract, the investor pays the premium to the insurance company which then invests the money to earn interest. In the “payout phase,” the insurance company makes periodic payments to the annuitant, usually for the rest of their life.

Annuity Payouts

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.

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

Deferred Vs. Immediate Annuities

Annuities may begin making payments immediately or after a period of time. An immediate annuity, as the name indicates, 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.”

How Does Annuitization Work? Examples

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.

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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.

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.

Are Fixed Annuities a Good Buy?

Fixed annuities can be a good buy. They typically work like a certificate of deposit you buy from a bank. You agree to give up access to your money for a period of time, allow it to earn interest, and collect your money at the end of the period. Fixed annuities tend to have higher interest rates compared to CDs, which means they can potentially earn more money during the accumulation phase.

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For example, Rising Bank is offering a 2-year CD with an interest rate of — one of the top rates available for this CD term. The best 2-year annuity rate is 5.65%, according to the chart above.

In addition to a favorable interest rate, annuities have other features that make them attractive to some retirees. Annuities grow tax-deferred — you don’t pay taxes on the interest earned until you withdraw money.

You can contribute as much as you want to an annuity, unlike IRAs and 401(k)s, which have limits. You may have the option to purchase riders to customize the annuity, such as a death benefit rider that lets you give the annuity to a beneficiary after your death.

Before You Invest

Before you purchase 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. You may need to pay a surrender charge or deal with tax consequences that leave you with less money than you expected.

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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. If the insurance company closes its doors, you could lose the money you invested and never see the returns.

Final Take

Annuities are complex, often misunderstood products. However, 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.

When shopping for annuity, look for the one with the features that offer you the greatest benefits and meets your needs. 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. This security — plus the possibility of a guaranteed income stream — make them worth investigating.


  • What is the highest paying fixed annuity rate?
    • As of Nov. 6, 2023, Pinnacle Plus 5 from Delaware has the highest available fixed annuity rate at 6.15%, according to Annuity Resources.
  • Who has the best fixed index annuity rates?
    • While Delaware Life offers the current highest rate, Oceanview, Aspida and EquiTrust 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.

Karen Doyle and Daria Uhlig contributed to the reporting for this article.

Information is accurate as of Nov. 6, 2023, and is subject to change.