MEDFORD, OR—Savers can now quickly find out how much they can earn with a fixed-rate annuity at AnnuityAdvantage’s snapshot of top annuity rates.
Rates now peak at 5.50% for a seven-year annuity, with the top three-year product guaranteeing 5.22% The January 2023 snapshot summarizes nine annuities with terms ranging from two to 10 years. Issuers are rated A or A- by A.M. Best.
A fixed-rate annuity, also called a multi-year guarantee annuity (MYGA), acts much like a bank certificate of deposit. It also pays a guaranteed rate of interest for a set term but usually a higher rate than a CD, and interest earnings can grow tax-deferred.
The detailed MYGA table covers hundreds of MYGAs from dozens of insurance companies. It lets users sort by annuity term, minimum premium, penalty-free withdrawals, A.M. Best rating, state availability, and if the annuity is “RMD friendly.” The latter is important for people considering using an annuity as a standard IRA.
“We’re making it easy to compare annuities,” said Ken Nuss, AnnuityAdvantage CEO. “The snapshot lets you see the top rates at a glance while the detailed tables let users do more research.”
Also traditional and fixed-indexed annuities
A third table lists traditional fixed annuities, which have lower guaranteed rates past the first year but offer the possibility of increased interest rates in a rising rate environment.
The fourth table lists fixed-indexed annuities, which credit interest based on the changes to a market index, such as the S&P 500 or Dow Jones Industrial Average. Interest is credited annually when the index value increases, but can never be less than zero.
If you withdraw money from any type of nonqualified annuity before age 59½, you’ll owe the IRS both ordinary income tax and a 10% penalty on the accumulated interest earnings withdrawn. The penalty is waived for anyone who’s permanently disabled.
About AnnuityAdvantage
AnnuityAdvantage is a leading online provider of fixed-rate, fixed-indexed, and lifetime income annuities. Ken Nuss is a nationally recognized annuity expert and widely published author. A free rate comparison service with interest rates from dozens of insurers is available at https://www.annuityadvantage.com or by calling (800) 239-0356.
Source: Story.KISSPR.com
Release ID: 488926