Fixed annuity (MYGA): guaranteed rate, certainty. Indexed annuity (FIA): market-linked with 0% floor, potential for higher returns. Neither is a direct stock market investment. Indexed annuity cap rates August 2026: up to 10.50% on 5–7 year terms. Fixed annuity rates August 2026: 5.00–6.25% from A-rated carriers.
Key Points
- Fixed annuity: guaranteed rate, certainty, no market exposure
- Indexed annuity: market-linked with 0% floor, potential for higher returns
- Neither is a direct stock market investment — you don't own shares
- Indexed annuity cap rates August 2026: up to 10.50% on 5–7 year terms
- Fixed annuity rates August 2026: 5.00–6.25% from A-rated carriers
- Indexed annuities typically have longer surrender periods than fixed annuities