What Are The Current Interest Rates On Annuities?

  1. 210 POINTS
    Barry Goldwater
    Principal, Goldwater Financial Group, Boston
    That is like asking what kinds of fish will I catch today if I just throw my line into the water. Interest rates on annuities are very different not only from company to company but product to product. Few people purchase an annuity for their interest rates unless the rate is guaranteed for 5-10 year periods. People mainly buy annuities for the no risk guarantees of having lifetime income. If you are comparing interest rates for the long term, annuities will compete. If interest rates are compared for the short term, annuities are not appropriate vehicles because of the surrender charges.
    Answered on June 22, 2013
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    David RacichPRO
    Fountain Hills, Arizona
    The Current Fixed Interest Rates on Annuities average 2.95% for 5 years, 3.25% for 10 years. The rates can change quickly so always call your annuity distributor before using any quotes including these quotes. Most advisers are selling 5 year fixed with an expectation that rates are going to rise in the future. The 35 basis point spread between the 5 and 10 year rate is not enough go long.
    Answered on June 22, 2013
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