Updated April 2026
Best Annuity Rates of April 2026
Secure your retirement with guaranteed income
An annuity is a financial product that provides guaranteed income payments over time. You make either a lump sum or series of payments to an insurance company, and in return, receive regular payments starting immediately or at a future date.
Annuities from highly-rated insurance companies are generally considered safe. They’re backed by the insurance company’s reserves and, in most states, protected by state guaranty associations up to certain limits.
Frequently Asked Questions
A fixed annuity is a type of insurance contract that guarantees a fixed rate of return on your investment for a specified period. Unlike variable annuities, your principal is protected and you know exactly how much you’ll earn.
Minimum investment requirements vary by provider, but most fixed annuities require between $5,000 and $25,000 to get started. Some providers offer lower minimums for qualified retirement account rollovers.
Annuity earnings grow tax-deferred, meaning you don’t pay taxes on the gains until you withdraw them. When you do withdraw, earnings are taxed as ordinary income.
Most annuities allow penalty-free withdrawals of up to 10% per year. However, withdrawing more than that may result in surrender charges, which typically decrease over time and disappear after 5-10 years.
Most annuities include a death benefit that passes the remaining value to your beneficiaries. The exact terms depend on your contract, but your heirs are typically protected from losing the principal investment.
When comparing annuities, look at the guaranteed interest rate, term length, surrender period, fees, and the insurance company’s financial strength rating. Our comparison tool above shows all these factors to help you make an informed decision.
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