Are there any good and reliable three- or five-year fixed annuities above 3% where both the interest and principal are guaranteed throughout the term? I have several with AIG at this point at 3% that are out of surrender and continue to get my 3% and still allowed to add to them. Any adding of more money to them will be for a new five-year term. But I would like to get more if possible.
Stan Haithcock, aka Stan the Annuity Man and fellow Maven, says there are good and reliable fixed annuities where both the interest and principal are guaranteed throughout the term. Fixed-rate annuities, also known as multi-year guaranteed annuities (MYGA), are regulated and approved at the state level. “So it would depend on your state,” he says.
Below is a link to a live feed on Haithcock’s website that shows the best fixed-rate annuities in the country.
As for searching for and selecting a multi-year guaranteed annuity with an interest rate greater than 3%, Haithcock offered the following:
There are some A+ rated carriers that are at 3.50% in some states, and most states have around 3.00% on the five-year.
According to Matt Carey of Blueprint Income, there are only a couple of fixed-rate annuities at the moment that are rated at least A-. Here's a link to the specific products.
Carey also encourages you to consider North American, which is rated A+ and paying 3.5% on its 7-year product. “That's the highest rate for any product on the platform and it's rare that it's from an A+ insurer,” he says.
Here's a link to see all products on the Blueprint Income platform.
Carey also noted that none of the seven insurers that Blueprint Income offers via AARP are paying more than 2.65%, which is Mutual of Omaha at five years. You can see all the AARP rates here.