5 Year Guaranteed Interest Annuity

5 6 year annuity rate.

5 year guaranteed interest annuity. 2 95 100 000 2 65 50 000 99 999 2 20 15 000 49 999 guaranteed period. In addition to earning higher interest rates a fixed annuity has even greater growth potential with tax deferral accelerating their growth. 2 90 100 000 2 35 50 000 99 999 1 90 15 000 49 999 6 year guarantee. She puts 100 000 into this annuity then waits 5 years until age 70 at which point she begins taking withdrawals per the defined income benefit.

Withdrawal provision is a feature of almost all myga s. Her protected withdrawal value has grown at the guaranteed 5 5 annual rate from 100 000 to 130 696. Sue is 65 years old. 2 90 100 000 2 60 50 000 99 999 2 15 15 000 49 999 7 year guarantee.

However a modified guaranteed annuity can be affected by market conditions. A multi year guaranteed annuity or myga is a type of fixed annuity that offers a guaranteed fixed interest rate for a certain period usually from three to 10 years. A fixed annuity is an insurance contract that pays a guaranteed rate of interest on the owner s contributions and later provides a guaranteed income. A myga as show above has an interest rate guarantee period of 5 years the guaranteed interest rate for each year is 5 00 and is guaranteed not to change for the length of the contract.

A modified guaranteed annuity provides a specific amount of income for a designated guaranteed period. Myga s are fixed annuities commonly referred to as cd type annuities. Longer terms of five to ten years offer higher rates than shorter term though a one to five year annuity can still potentially outperform bank instruments. Choose guarantee period of 3 5 or 7 years.

There is also a guaranteed annuity referred to as a modified guaranteed annuity. You can read a detailed description of multi year guaranteed annuities here. The type of fixed annuity deferred or immediate determines when payouts will start. A myga is appropriate for someone who is closer to retirement and prefers tax deferral and a guarantee of investment return.

Fixed annuities promise to pay a guaranteed interest rate on the investor s contributions.