Updated October 16, 2026 by Kevin Edwards, California-licensed annuity agent (License #0D42517). Rates below are from our October 12, 2026 California update.
Short answer: fixed annuity rates are holding near their highest levels in years, and the interest-rate backdrop moved up this fall, not down. On September 16, 2026, the Federal Reserve raised its target range by a quarter point to 3.75%–4.00%, its first increase since July 2023. The median projection Fed officials released that day pointed to about one more increase before the end of 2026, and none projected a cut this year.
That doesn’t mean MYGA rates will keep climbing. Nobody can reliably time them. Below is what drives the rates, what waiting can cost, and a laddering approach that works whichever way rates go.
Where California MYGA Rates Stand Now
| Term | Best guaranteed yield in California | Product | Deposit for this rate |
|---|---|---|---|
| 3 years | 5.70% | Oxford Life Multi-Select 3 | $20,000+ |
| 5 years | 6.10% | Aspida Synergy Choice 5 | $100,000+ |
| 7 years | 6.20% | Oxford Life Multi-Select 7 | $20,000+ |
| 10 years | 6.35% | Oxford Life Multi-Select 10 | $20,000+ |
See every product, all terms and this week’s scheduled rate changes on our California fixed annuity (MYGA) rates page, updated weekly.
What Actually Moves Annuity Rates
The Fed doesn’t set MYGA rates. Insurance companies invest your premium mostly in bonds, so MYGA rates follow longer-term bond yields and competition among carriers more than the Fed’s overnight rate. Fed decisions matter because they influence those yields, but carriers can and do change rates in the weeks between Fed meetings, sometimes several times a month. The Fed’s next meeting is October 27–28, 2026.
Fixed index annuity caps and immediate annuity payouts respond to the same forces. Higher yields generally support higher caps and higher lifetime income; lower yields do the opposite.
Should You Lock In Now or Wait?
Waiting is a bet that rates will rise enough to make up for the interest you give up while you wait. Today’s rates are guaranteed for the full term; a better rate next month is not. A few practical points:
- Uninvested money earns less. Money parked in a savings account or money market while you wait usually earns less than a multi-year guarantee.
- Rate locks help. Many carriers honor the current rate if your application is submitted before a scheduled change takes effect. Ask about the carrier’s lock rules before you apply.
- You don’t have to choose one date. A ladder splits the decision across several terms, so you lock in part now and keep part coming due sooner.
A MYGA Ladder Example
Here’s a simple three-rung ladder for $300,000, using the top California rates from our October 12 update. Each rung is a separate MYGA with its own term.
| Rung | Deposit | Term | Guaranteed yield | Value at maturity | Interest earned |
|---|---|---|---|---|---|
| 1 | $100,000 | 3 years | 5.70% | $118,093 | $18,093 |
| 2 | $100,000 | 5 years | 6.10% | $134,455 | $34,455 |
| 3 | $100,000 | 7 years | 6.20% | $152,360 | $52,360 |
| Total | $300,000 | $404,908 | $104,908 |
Assumes annual compounding at the guaranteed yield with no withdrawals, held to the end of each term. All three products include a market value adjustment, which applies only if you withdraw more than the penalty-free amount before the term ends.
Why it works either way:
- If rates rise, the first rung matures in three years and the second in five, and you can move that money into whatever the new rates are, often with a tax-free 1035 exchange.
- If rates fall, two-thirds of the money is still locked at today’s rates for five to seven years.
- Liquidity improves. Something comes due every two years, and most MYGAs also allow limited penalty-free withdrawals each year.
You can change the rungs to fit your plans, for example 2, 4 and 6 years, or five rungs of $60,000. Run your own numbers in our fixed annuity calculator.
Frequently Asked Questions
Are annuity rates going up or down?
As of October 2026, MYGA rates are holding near multi-year highs. The Fed raised rates in September 2026 and its projections pointed to steady or higher rates through year-end, not cuts. Carriers still adjust rates frequently, so check current rates before you apply.
Will my MYGA rate change if the Fed changes rates?
No. A MYGA’s rate is guaranteed for the full term once your contract is issued. Fed changes affect the rates on new contracts, not yours.
What happens to my rate when my MYGA term ends?
The contract typically renews at the carrier’s then-current rate unless you move it. Many people use the end of the term to compare rates and do a 1035 exchange. See what happens when a fixed annuity matures.
Is a ladder better than putting everything in one MYGA?
A ladder trades a little yield for flexibility. If you’re certain you won’t need the money for 10 years, one long term may pay more. If you’re unsure about rates or your plans, a ladder spreads the risk.
Get a Ladder Built Around Your Timeline
I’m an independent California annuity agent, so I can build each rung from a different carrier. Request a free quote or call (877) 854-7396.
Sources
- Federal Reserve: FOMC statement, September 16, 2026
- LIMRA: U.S. annuity sales, second quarter 2026
- California fixed annuity (MYGA) rates, Fixed Annuity Expert — AnnuityRateWatch.com carrier data via AIP Marketing Alliance, retrieved October 12, 2026
Kevin Edwards, Integrity Now Insurance Brokers. California Insurance License #0D42517. Annuities are insurance products, not bank deposits, and are not FDIC insured. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. Withdrawals before the end of the surrender period may be subject to surrender charges and market value adjustments; withdrawals of taxable amounts may be subject to ordinary income tax and, if taken before age 59½, a 10% federal tax penalty. This page is for educational purposes and is not tax, legal or investment advice. Product availability and features vary by state.
Rates, availability and features change without notice and must be verified with the issuing carrier at application. Examples are hypothetical and for illustration only.