A fixed annuity (MYGA) pays a guaranteed interest rate for a set period — typically 3, 5, 7, or 10 years. Principal is guaranteed — no market risk. Interest grows tax-deferred. Best rates August 2026: 5.00–6.25% from A-rated carriers. Typically allows 10% free withdrawal per year without surrender charges.
Key Points
- Guaranteed interest rate for a set period (3, 5, 7, or 10 years)
- Principal is guaranteed — no market risk
- Interest grows tax-deferred until withdrawal
- Best rates August 2026: 5.00–6.25% from A-rated carriers
- Typically allows 10% free withdrawal per year without surrender charges
- Surrender charges apply for withdrawals beyond the free amount during the term