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My Annuity Store reported fixed annuity rates of 6.10% for three-year terms, 6.55% for five-year terms and 6.95% for seven-year terms as of Oct. 1, 2026. Those rates may appeal to savers seeking guaranteed returns or retirement income, but future interest rates are uncertain and annuity terms, access limits and insurer commitments matter.
Fixed annuity rates reached as high as 6.95% for a seven-year term as of October 1, 2026, according to rate data from My Annuity Store cited by Kiplinger. The report says higher interest rates have helped lift the yields available to new buyers, putting multi-year guaranteed annuities and lifetime-income products back in focus for savers weighing guaranteed returns against market exposure and access to their money.
My Annuity Store’s figures, as reported by Kiplinger, put the best listed rates at 6.10% for three years, 6.55% for five years, 6.95% for seven years and 6.35% for 10 years. These are rates reported for specific products and terms on that date, not a promise that every buyer can obtain the same offer. Availability and contract details may vary by insurer and buyer.
The report also cites LIMRA data showing U.S. annuity sales rose 2.2% in the second quarter to $121.2 billion. Sales for the first six months of 2026 totaled $228.7 billion, which LIMRA described as a first-half record. The figures indicate strong sales during the period, but they do not establish that higher rates alone caused the increase.
Kiplinger focuses on two products. A multi-year guaranteed annuity (MYGA) locks in an interest rate for a fixed term, commonly three to 10 years, with tax-deferred growth. A single premium immediate annuity (SPIA) converts a lump sum into payments that begin promptly and may last for life or a set period. They serve different purposes: one accumulates money over a term, while the other is designed to provide income.
The Trade-Off Behind Higher Guarantees
For people close to retirement, a guaranteed rate or a set income payment can make future cash flow more predictable and reduce reliance on selling investments during a market downturn. That certainty comes with limits: a MYGA ties money to a contract term, while a life-only SPIA generally exchanges access to a lump sum for income that lasts as long as the annuitant lives.
The quoted yields should not be treated as equivalent to a bank deposit or a market investment. Annuities are insurance contracts, and guarantees depend on the financial strength and claims-paying ability of the issuing insurer. Buyers need to compare the contract’s rate, term, surrender provisions and income options against their own needs, including emergency savings and other retirement resources.
David Lau, founder and CEO of DPL Financial Partners, said the current yields are attractive for people seeking income. His view is a source’s assessment, not a forecast that rates will remain high or that an annuity is suitable for every saver. Ed Massaro, CEO of Knighthead Life, frames the decision around whether current rates provide enough income to meet a person’s retirement goals, rather than whether rates have peaked.
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How Rate Changes Reach Annuity Buyers
Insurers invest premiums, including in bonds. When yields on new investments rise, insurers may be able to offer more favorable rates to new fixed annuity customers, though the precise offer depends on the product and insurer. Kiplinger links renewed interest in annuities to rising borrowing costs, including movement in the Federal Reserve’s benchmark rate and the 10-year Treasury yield.
The report describes a MYGA as a fixed-rate contract for a stated term. Its example says a $100,000 premium in a five-year MYGA yielding 6.55% would earn $6,550 annually under the stated calculation, with principal returned at the end of the term. Actual contract crediting, withdrawal rules and tax treatment depend on the policy and circumstances; readers should review the contract rather than rely on an illustrative example.
A SPIA works differently. Kiplinger’s example calculates that a $100,000 premium at a 5% annual payout rate produces $416.67 per month, while a 5.25% rate produces $437.50. A payout rate is not necessarily the same as an investment yield: payments can include return of principal. In a life-only contract, payments generally stop when the covered person dies; period-certain or refund features can change the payments and what beneficiaries may receive.
“The right question isn’t whether rates are at a peak; it’s whether today’s rates get you enough income to meet your retirement goals.”
— Ed Massaro, CEO of Knighthead Life, as quoted by Kiplinger
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Future Rates and Contract Terms
Interest-rate direction is uncertain. Kiplinger reports that Wall Street forecasts cited in its article anticipated another full percentage point of Federal Reserve rate increases through the end of 2027, potentially moving the overnight bank lending rate from 4% to 5%. That is a forecast, not a confirmed policy decision, and rates could move differently. Waiting could bring higher offers or cause available rates to fall.
The supplied report does not give a full comparison of rates across insurers, locations, contract features or buyer eligibility. It also does not specify how the listed rates might change after October 1 or whether every quote remains available. The cited 10-year Treasury level and annuity rates are date-specific, not current quotes for an individual buyer.
Costs and access rules require contract-by-contract review. Kiplinger says many insurers allow withdrawals of up to 10% of account value annually without a surrender charge, citing AnnuityExpert.com; that does not establish a universal rule. A withdrawal may also have tax consequences, and withdrawals above a free amount may trigger charges. Buyers should verify the insurer’s terms and consider the consequences of giving up liquidity.
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Compare Offers Before Committing
The next practical step for a saver considering an annuity is to obtain current written quotes from multiple insurers and compare the same term and payout options. For a MYGA, check the guaranteed rate, contract length, surrender-charge schedule, permitted withdrawals and what happens when the term ends. For a SPIA, compare monthly payments and ask how joint-life, period-certain or refund options change the amount.
Buyers should also check the insurer’s financial-strength information and confirm how the guarantee is backed. Anyone considering replacing market investments with an annuity may want advice from a qualified professional who can review the full retirement-income picture. The October 1 rate snapshot and the forecast cited in Kiplinger do not settle whether to buy now: that depends on the buyer’s need for predictable income, time horizon, liquidity needs and tolerance for the possibility that rates later rise.
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Key Questions
What fixed annuity rates did the report cite?
My Annuity Store rate data cited by Kiplinger showed 6.10% for three years, 6.55% for five years, 6.95% for seven years and 6.35% for 10 years, as of October 1, 2026. These are reported product rates for that date, not guaranteed quotes for every buyer.
Does a higher annuity rate mean I should buy one now?
Not by itself. The decision depends on whether the contract fits your income needs, how long you can commit the money, withdrawal restrictions, insurer strength and the possibility that rates may change. The cited rates do not predict future offers.
What is the difference between a MYGA and a SPIA?
A MYGA guarantees a rate for a fixed term and is generally used to accumulate money. A SPIA turns a lump sum into payments that start promptly, often for life or a selected period. Their access rules and risks differ.
Can I withdraw money from a fixed annuity before the term ends?
Some contracts allow limited withdrawals without surrender charges, but the amount and conditions vary. Kiplinger cites a commonly available allowance of up to 10% a year; buyers should confirm the exact contract terms and consider possible tax consequences.
Are the reported annuity guarantees the same as a bank deposit guarantee?
No. Annuities are insurance contracts, and their guarantees depend on the issuing insurer’s claims-paying ability. They are not bank deposits. Review insurer information and the policy terms before making a decision.
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