Fixed Deferred Annuities

Enjoy guaranteed, tax-deferred growth free from market volatility.

What is a fixed deferred annuity?

If you're looking for safety from market volatility, a fixed deferred annuity could be right for you. It gives you the security of a fixed guaranteed1 interest rate while the interest you earn is tax-deferred2. If you'd like to explore this option, Schwab can help you choose the fixed deferred annuity that best fits your needs.

All guarantees are backed by the claims-paying ability and financial strength of the issuing insurance company, not Schwab.

Click here for interest rates on the fixed deferred annuities offered through Schwab.

Questions about annuities? Contact an annuity specialist at 866-663-5241.

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Compare Schwab's fixed deferred annuities:

  • New York Life Secure Term Choice Fixed Annuity II
  • MassMutual Stable VoyageSM
  • Midland National LiveWell® Guarantee Max
  • USAA Protected Deferred Annuity 
  • Western & Southern SmartSelect Single Premium Deferred Annuity 
  • Overview
  • New York Life Secure Term Choice Fixed Annuity II
    • You may choose from a range of guarantee periods, including three, four, five, six, or seven years.
    • Option to receive at least the initial purchase amount beginning on the second policy anniversary for those who purchase a policy between ages 0-85 (available immediately for those who purchase a policy between ages 86-90).4
  • MassMutual Stable VoyageSM
    • You may choose from a range of guarantee periods, including three, four, or five years.
  • Midland National LiveWell® Guarantee Max
    • You may choose from a range of guarantee periods, including three, five, or seven years.* Not available in New York.

      * The 7-year guarantee period is not available in CA and FL.
  • USAA Protected Deferred Annuity 
    • You may choose from a range of guarantee periods, including three, four, five, or ten years. Not available in New York. 
  • Western & Southern SmartSelect Single Premium Deferred Annuity 
    • You may choose from a range of guarantee periods, including three, four, five, six or seven years. Not available in New York 
  • Financial Strength—Standard & Poors3
  • New York Life Secure Term Choice Fixed Annuity II
    New York Life Insurance and Annuity Corporation
    • AA+
  • MassMutual Stable VoyageSM
    Massachusetts Mutual Life Insurance Company 
    • AA+
  • Midland National LiveWell® Guarantee Max
    Midland National® Life Insurance Company 
    • A+
  • USAA Protected Deferred Annuity 
    USAA Life Insurance Company 
    • AA+ 
  • Western & Southern SmartSelect Single Premium Deferred Annuity 
    Western-Southern Life Assurance Company 
    • AA- 
  • Issuer
  • New York Life Secure Term Choice Fixed Annuity II
    New York Life Insurance and Annuity Corporation
  • MassMutual Stable VoyageSM
    Massachusetts Mutual Life Insurance Company
  • Midland National LiveWell® Guarantee Max
    Midland National® Life Insurance Company
  • USAA Protected Deferred Annuity 
    USAA Life Insurance Company 
  • Western & Southern SmartSelect Single Premium Deferred Annuity 
    Western-Southern Life Assurance Company 

See more fixed deferred annuity comparisons.

New York Life Secure Term Choice Fixed Annuity II

  • 905

MassMutual Stable VoyageSM

  • 858

Midland National LiveWell® Guarantee Max

  • 90

USAA Protected Deferred Annuity

  • 85

Western & Southern SmartSelect Single Premium Deferred Annuity

  • 85

New York Life Secure Term Choice Fixed Annuity II

  • Three, four, five, six, or seven years

MassMutual Stable VoyageSM

  • Three, four, or five years

Midland National LiveWell® Guarantee Max

  • Three, five, or seven years*

    *The 7-year guarantee period is not available in CA and FL.

USAA Protected Deferred Annuity

  • Three, four, five or ten years

Western & Southern SmartSelect Single Premium Deferred Annuity

  • Three, four, five, six or seven years.

New York Life Secure Term Choice Fixed Annuity II

  • At the end of the initial interest rate guarantee period, the policy will receive a new renewal rate each anniversary that is based on the accumulation value. That rate will not be less than the guaranteed minimum interest rate stated in your policy - no surrender charge period will-apply. Or,
  • At the end of the initial interest rate guarantee period, you can take a partial or full withdrawal—no surrender charge.2 Or,
  • You can begin annuity payments – no surrender charge.2

MassMutual Stable VoyageSM

  • Renew into a new guarantee period (three, four, or five years), if available at the time. A reduced surrender charge period will begin. Or,
  • Renew into a one-year guarantee period. The guaranteed interest rate will not be less than the minimum guaranteed interest rate—no surrender charge period will apply. Or,
  • At the end of the initial interest rate guarantee period, you can take a partial or full withdrawal—no surrender charge.2 Or,
  • You can begin annuity payments – no surrender charge.2

Midland National LiveWell® Guarantee Max

  • Renew into a new guarantee period (three, five, or seven years*). A new surrender charge period will begin.14 Or,
  • At the end of the initial interest rate guarantee period, you can take a partial or full withdrawal—no surrender charges or market value adjustment will apply.2 Or,
  • You can begin annuity payments—no surrender charges or market value adjustment will apply.2

*Note, if no election is made within the 30-day window following the end of the guarantee period your policy will automatically renew to the same guarantee period that is expiring and withdrawals will be subject to the same surrender charge period and market value adjustment. 

*The 7-year guarantee period is not available in CA and FL.

USAA Protected Deferred Annuity

  • Renew into a new guarantee period (three, four, five, or ten years). A new surrender charge period will begin. Or,
  • Renew into a one-year guarantee period. The guaranteed interest rate will not be less than the minimum guaranteed interest rate—no surrender charge period will apply. Or,
  • At the end of the initial interest rate guarantee period, you can take a partial or full withdrawal—no surrender charges or market value adjustment will apply.2 Or,
  • You can begin annuity payments—no surrender charges or market value adjustment will apply.2

Western & Southern SmartSelect Single Premium Deferred Annuity

  • Choose a new guarantee period (three, four, five, six or seven years) locking in a new interest rate and a new withdrawal charge with Market Value Adjustment20 (MVA).
  • Do nothing and renew into the 1-year guarantee period at the current interest rate. You can take partial withdrawals, a full surrender, or you can begin annuity payments with no withdrawal charge and no MVA.20
     

New York Life Secure Term Choice Fixed Annuity II

  • $100,000 to $1,499,999
  • $1,500,000 and over

MassMutual Stable VoyageSM

  • $100,000 and over

Midland National LiveWell® Guarantee Max

  • $100,000 to $249,999
  • $250,000 and over

USAA Protected Deferred Annuity

  • $100,000 and over

Western & Southern SmartSelect Single Premium Deferred Annuity

  • $100,000 and over

New York Life Secure Term Choice Fixed Annuity II

Each policy year, you may withdraw the greatest of:

  • 10% of the accumulation value as of the previous anniversary, or
  • 10% of the current accumulation value, or
  • 100% of the gain earned in the policy. (For policies with a premium amount of $100,000 or more. Not available in New York.)

Required minimum distributions (RMD):

  • Qualifying RMD amounts that exceed the free withdrawal amount are not subject to surrender charges15

MassMutual Stable VoyageSM

  • First contract year: Up to 10% of the contract value as determined at the time the first withdrawal request is processed16 
  • Contract years two and later: Up to 10% of the contract value calculated as of the last business day of the previous contract year16

Required minimum distributions (RMD): 

  • Qualifying RMD amounts for an IRA or a qualified plan that exceed the free withdrawal amount are not subject to surrender charges16

Midland National LiveWell® Guarantee Max

  • After the first contact year: Withdraw the interest credited for the previous contract year (market value adjustment 2,11 and surrender charges do not apply)

Required minimum distributions (RMD):  

  • Qualifying RMD amounts that exceed the penalty-free withdrawal amount are not subject to surrender charges or market value adjustment

USAA Protected Deferred Annuity

After 30 days of issue, up to 10%2,17 of the account balance can be withdrawn penalty-free in any given policy year: 

  • Year 1: Withdraw up to 10% of the initial premium
  • Year 2+: Withdraw up to 10% of the accumulated value at the start of the contract year in which the withdrawals are taken. Withdrawals are not cumulative from year to year; meaning any amount not withdrawn as during a contract year cannot be added to the next contract year

Required minimum distributions (RMD): 

  • Qualifying RMD will count towards the 10% free withdrawal amount, and amounts that exceed the free withdrawal amount are not subject to surrender charges or market value adjustment

Western & Southern SmartSelect Single Premium Deferred Annuity

  • Immediately: Withdraw up to 10% of the account value (market value adjustment2,20 and surrender charges do not apply). Withdrawals are not cumulative from year to year; meaning any amount not withdrawn as during a contract year cannot be added to the next contract year

Required minimum distributions (RMD): 

  • Qualifying RMD will count towards the 10% free withdrawal amount, and amounts that exceed the free withdrawal amount are not subject to surrender charges or market value adjustment
     

New York Life Secure Term Choice Fixed Annuity II

  • Available

MassMutual Stable VoyageSM

  • Available

Midland National LiveWell® Guarantee Max

  • Available

USAA Protected Deferred Annuity

  • Available

Western & Southern SmartSelect Single Premium Deferred Annuity

  • Available

New York Life Secure Term Choice Fixed Annuity II

  • Year 1: 7%
  • Year 2: 7%
  • Year 3: 7%
  • Year 4: 6%
  • Year 5: 5%
  • Year 6: 4%
  • Year 7: 3%

Surrender charge schedule will always equal the initial interest rate guarantee period. For example, a 5-year initial interest rate guarantee period will have a 5-year surrender schedule, a 7-year initial interest rate guarantee period will have a 7-year surrender schedule, etc.

MassMutual Stable VoyageSM

  • Year 1: 7%
  • Year 2: 7%
  • Year 3: 7%
  • Year 4: 6%
  • Year 5: 5%

Surrender charge schedule will always equal the initial interest rate guarantee period. For example, a 3-year initial interest rate guarantee period will have a 3-year surrender schedule, a 5-year initial interest rate guarantee period will have a 5-year surrender schedule, etc.

    Midland National LiveWell® Guarantee Max

    • Year 1: 9%
    • Year 2: 8%
    • Year 3: 7%
    • Year 4: 6%
    • Year 5: 5%
    • Year 6: 4%
    • Year 7: 3%

    California

    • Year 1: 8%
    • Year 2: 7.10%
    • Year 3: 6.15%
    • Year 4: 5.25%
    • Year 5: 4.30%

    Surrender charge schedule will always equal the initial interest rate guarantee period. For example, a 5-year initial interest rate guarantee period will have a 5-year surrender schedule, a 7-year initial interest rate guarantee period will have a 7-year surrender schedule, etc.

    USAA Protected Deferred Annuity

    • Year 1: 7%
    • Year 2: 7%
    • Year 3: 7%
    • Year 4: 6%
    • Year 5: 5%
    • Year 6: 4%
    • Year 7: 3%
    • Year 8: 2%
    • Year 9: 1%
    • Year 10: 1%

    California for 10-years, the surrender charge schedule is:

    • Year 1: 7%
    • Year 2: 7%
    • Year 3: 7%
    • Year 4: 6%
    • Year 5: 5%
    • Year 6: 4%
    • Year 7: 3%
    • Year 8: 2%
    • Year 9: 1%
    • Year 10: 0%

    Surrender charge schedule will always equal the initial interest rate guarantee period. For example, a 5-year initial interest rate guarantee period will have a 5-year surrender schedule, a 7-year initial interest rate guarantee period will have a 7-year surrender schedule, etc.

    Western & Southern SmartSelect Single Premium Deferred Annuity

    • Year 1: 7%
    • Year 2: 7%
    • Year 3: 7%
    • Year 4: 6%
    • Year 5: 5%
    • Year 6: 4%
    • Year 7: 3%

    Surrender charge schedule will always equal the initial interest rate guarantee period. For example, a 5-year initial interest rate guarantee period will have a 5-year surrender schedule, a 7-year initial interest rate guarantee period will have a 7-year surrender schedule, etc. Surrender charges may be different when renewing to a new guarantee period.
     

    New York Life Secure Term Choice Fixed Annuity II

    • Full accumulation value prior to annuitization

    MassMutual Stable VoyageSM

    • Full contract value prior to annuitization

    Midland National LiveWell® Guarantee Max

    • Full accumulation value prior to annuitization

    USAA Protected Deferred Annuity

    • Full accumulation value prior to annuitization

    Western & Southern SmartSelect Single Premium Deferred Annuity

    • Full accumulation value prior to annuitization

    New York Life Secure Term Choice Fixed Annuity II

    • Return of Premium benefit (beginning on the second policy anniversary)
    • Living Needs Benefit/Unemployment Rider
    • Enhanced Beneficiary Benefit Rider6 (available for a fee)
    • Enhanced Spousal Continuance Rider7 (available for a fee)
    • Interest Opportunity Rider12 (available for a fee)

    MassMutual Stable VoyageSM

    • Nursing home and hospital waiver9
    • Terminal illness waiver

    Midland National LiveWell® Guarantee Max

    • Market value adjustment2,11

    USAA Protected Deferred Annuity

    • Nursing home waiver and critical care withdrawal
    • Marketing value adjustment2,17

    Western & Southern SmartSelect Single Premium Deferred Annuity

    • Limited life expectancy waiver18,19
    • Confinement to a nursing home, hospital or licensed health care facility18,19
    • Marketing value adjustment2,20

    What other factors should I be aware of when considering a fixed deferred annuity?

    Fixed deferred annuities also have surrender charges (a charge on an early withdrawal based on the time period of the policy or cancellation of the policy) and some contracts may impose a market value adjustment, which may be positive or negative, if you make a withdrawal during one or more of the guaranteed periods you can elect under the policy. Generally, any withdrawals in a given year that exceed 5% - 10% of your account value (based on the contract you select) will be subject to surrender charges and/or a market value adjustment.

    Withdrawals from a fixed deferred annuity will reduce the value of your annuity and can be subject to ordinary income tax. Withdrawals prior to age 59½ may also be subject to a 10% federal tax penalty.

    In a fixed deferred annuity, you may elect to withdraw your money at the end of the interest rate guarantee period in a lump sum. Or, you may want to annuitize and permanently convert your cash value into an income stream, which depending on the option you select, can last for life, a guaranteed period, or both. Alternatively, your money may be kept in the annuity to accumulate at the renewal rate until a need for the funds arises.

    Questions? We're ready to help.