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HomeMoneyTop Fixed Annuity Rates in May 2023

Top Fixed Annuity Rates in May 2023

Best Fixed Annuity Rates for May 2023

Fixed annuity rates are currently on the rise, along with interest rates in general. As of May 1st, the best fixed annuity rates are 4.60% for a two-year term, 5.65% for a three-year term, 5.50% for a five-year term, and 5.45% for a ten-year term. But before jumping into a fixed annuity, it’s important to understand what it is and how it works.

What Is a Fixed Annuity?

A fixed annuity is a contract between an investor and an insurance company. The investor makes premium payments, and in exchange, the insurance company agrees to pay the investor a guaranteed rate of interest. This rate may change over time, but there is a minimum guaranteed rate that stays in effect for the entire term of the contract.

Later, your contributions and the interest they’ve earned provide you with lifelong or a fixed number of predictable income payments. These payments can begin immediately or after a set time period, and are typically used to provide a stream of income in retirement, similar to a personal pension.

How Do Fixed Annuity Rates Work?

Fixed annuity rates are just that – fixed – but only for a certain period of time. This time period may not coincide with the surrender period, or the time you will hold the contract before annuitizing. It’s important to understand when and how your interest rate can change before investing.

Fixed annuity rates can change constantly, so when you’re ready to invest, compare the rates at that time. The rates listed above were accurate as of May 1st, but may have changed.

Related Facts

  • Variable annuities, on the other hand, invest premium payments in equities, mutual funds, or other variable investments, so the rate of return can vary.
  • An immediate annuity begins paying out right away and can only be purchased with a single premium, while deferred annuities begin making payments at some point in the future.
  • The amount of the annuity payout depends on factors such as the amount of premium(s) paid into the contract, the rate of return, and the age at which the annuitant begins taking payments.

Key Takeaway

Before investing in a fixed annuity, it’s important to understand how they work and how fixed annuity rates are set. Fixed annuity rates may change over time, so compare rates when you’re ready to invest. Fixed annuities can provide a reliable stream of income in retirement, similar to a personal pension.


If you’re considering a fixed annuity, now may be a good time to invest with rates currently on the rise. However, it’s important to do your research and understand the terms and conditions of the annuity contract before investing. With careful consideration and a solid understanding of how fixed annuities work, they can be a valuable tool in your retirement planning.

Denk Liu
Denk Liu
Denk Liu is an honest person who always tells it like it is. He's also very objective, seeing the situation for what it is and not getting wrapped up in emotion. He's a regular guy - witty and smart but not pretentious. He loves playing video games and watching action movies in his free time.

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