MEDFORD, OR—November 2, 2023—Annuity rates have nudged past 6.00% for the first time in over a decade, according to AnnuityAdvantage’s newly released survey of fixed annuity rates.
One insurer now offers an annuity that pays 6.15% for either a five- or seven-year term. Another standout is a three-year annuity guaranteeing 5.90% annually.
“Now’s a great time to lock in a high rate on an annuity,” says Ken Nuss, CEO of AnnuityAdvantage, an online annuity marketplace.
Fixed-rate annuities offer high rates plus tax deferral
Issued by life insurers, fixed-rate annuities (also called multi-year guarantee annuities) act much like a tax-deferred version of bank certificates of deposit (CDs) because they pay a guaranteed set rate for a certain term. Tax deferral helps nonqualified money grow faster because taxes can be delayed indefinitely.
Fixed-rate annuities also can be a great choice for qualified retirement accounts. Both standard IRAs and Roth IRAs can be set up as an annuity, Nuss says.
Annuities aren’t guaranteed by Federal Deposit Insurance (FDIC), but state annuity guaranty associations are legally required to protect annuity buyers, up to certain limits. Strictly regulated by the states, life insurers, have an excellent track record of financial stability. Nuss recommends choosing a company with Best’s rating of B++ or higher.
Interest withdrawn from a nonqualified fixed annuity before age 59½ is normally subject to a 10% tax penalty in addition to regular federal and state income tax.
We’re a premier online site and service for people seeking help with selecting the best annuity for their needs. Our team sorts through annuity options to provide each client with product offerings custom-tailored to their situation. Every annuity offered is filtered, screened, and analyzed for client suitability.
We strive to make the annuity buying process as easy as possible, while also providing complete information and disclosure on our entire annuity selection so that you can make informed decisions. Our experienced annuity specialists will answer all your questions so that you can make the best decisions for your money.
Ken Nuss is the founder and CEO of AnnuityAdvantage, a leading online provider of fixed-rate, fixed-indexed, and lifetime income annuities. He’s a nationally recognized annuity expert and prolific writer on retirement income. 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.
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Release ID: 793847