MYGAs (Multi-Year Guaranteed Annuities)

How a MYGA works

A MYGA is a straightforward type of fixed annuity. You choose a term (for example, 5 years), and the insurance company guarantees the same interest rate for the entire period. There is no market risk and no fluctuating rate. At the end of the term you can renew at current rates, take income, roll to another annuity tax-free, or withdraw the balance.

How MYGAs compare to CDs

• Often pay meaningfully higher rates than bank CDs of the same term
• Interest grows tax-deferred — no 1099 each year, unlike a CD
• 100% principal protection backed by the issuing insurance company
• Free-withdrawal provisions allow limited penalty-free access each year
• Trade-off: MYGAs are less liquid than CDs — surrender charges apply if you withdraw beyond the free amount before the term ends

What to compare

MYGA rates change frequently and vary by term length, deposit amount, and issuing carrier. When comparing options, look at the guaranteed rate, the term length, the free-withdrawal percentage, and the financial strength rating of the insurer. A licensed advisor can pull current rates from multiple top-rated carriers so you can pick the best fit.