Shopping for the best deals on CD-type annuities is easy at

MEDFORD, OR / ACCESSWIRE / November 3, 2022 / Rates on fixed-rate deferred annuities have shot up. Buyers can get up to 5.55% on a seven-year annuity according to AnnuityAdvantage’s database of annuity rates.

With a five-year term, buyers can earn up to 5.40%. A three-year fixed annuity can pay up to 5.10% for buyers with $100,000 to invest, or 4.95% with a $10,000 minimum.

Rates vary enormously by company – site makes comparisons easy

A fixed-rate deferred annuity (also called a multiyear guarantee annuity or MYGA) resembles a bank certificate of deposit (CD) since it also pays a guaranteed rate of interest for a set term. But annuities also offer tax deferral.

“Rates on annuities with the same term vary hugely,” says Ken Nuss, CEO of AnnuityAdvantage, an online annuity marketplace. “If you don’t shop around, you’ll almost certainly earn far less interest than you could.”

AnnuityAdvantage, an online annuity marketplace, offers annuities from dozens of top annuity companies. Rates, terms, conditions, and AM Best ratings are clearly listed.

Consider liquidity and financial strength too

The term is the length of the annuity guarantee period. Most multi-year annuities go from two to 10 years. Longer-term annuities usually pay more than shorter-term ones, although that spread has been narrowing in recent months.

Many annuities let the owner withdraw up to 10% of the contract value annually without penalty. Some annuities don’t have that provision and, in return, may pay a higher rate than a comparable annuity that offers more liquidity.

Issued by life insurance companies, annuities aren’t federally insured like CDs, but state-mandated guaranty associations offer a certain level of protection.

Annuity companies are rated by AM Best for financial strength and ability to pay claims. Letter grades range from F to A++.

Some people feel comfortable only with insurers that get at least an A or A- rating. Others may feel comfortable with lower-rated carriers.

“I recommend choosing companies rated B++ as the minimum and avoiding those rated B+ or lower,” Nuss says.

Lesser-known first-rate insurers sometimes pay higher rates than brand-name companies with more overhead and expensive advertising campaigns.

Nuss advises doing business with an annuity agency that’s licensed nationally, represents a wide swath of insurers, and has experienced agents who take the time to help customers find the most suitable product.

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 or by calling (800) 239-0356.

Media contact: Henry Stimpson, [email protected]

SOURCE: AnnuityAdvantage

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