Current MYGA rates by term
| Term | Top APY | Carrier Rating | Minimum | |
|---|---|---|---|---|
| 2 Year | 5.40% | A or better | $10,000 | Details → |
| 3 Year | 5.75% | A or better | $10,000 | Details → |
| 4 Year | 5.85% | A or better | $10,000 | |
| 5 Year | 6.10% | A or better | $10,000 | Details → |
| 7 Year | 6.25% | A or better | $25,000 | Details → |
| 10 Year | 6.40% | A or better | $25,000 | Details → |
How MYGA rates are set
Insurance carriers price MYGAs against the same yield curve banks use to price CDs — primarily short-to-intermediate Treasury and high-grade corporate bonds. When the 5-year Treasury yield rises, MYGA rates typically follow within weeks. Because insurers can hold longer-duration assets than most banks, MYGAs almost always pay 50–150 basis points more than a comparable-term bank CD.
Choosing the right MYGA term
- 2–3 years: Best when you expect rates to rise or want short-term flexibility.
- 5 years: The sweet spot — best yield-per-year-of-commitment in most environments.
- 7–10 years: Maximizes guaranteed yield. Best if you're certain you won't need the funds.
MYGA vs CD vs Bond
Bank CDs are simpler but typically pay less and are taxable each year. Bonds offer liquidity but introduce price risk if sold before maturity. MYGAs split the difference: higher rate than CDs, no market risk like bonds, but with a surrender schedule that limits early access. See our full breakdowns: MYGA vs CD and annuity vs bond.
Frequently asked questions
- What is a MYGA annuity?
- A MYGA (Multi-Year Guaranteed Annuity) is a type of fixed annuity that pays a guaranteed interest rate for a set number of years — typically 2 to 10. At the end of the term, the contract can be renewed, surrendered, or rolled into a new annuity via a 1035 exchange.
- What are today's best MYGA rates?
- As of January 1, 1970, top MYGA rates from A-rated carriers range from approximately 5.40% APY (2-year) to 6.40% APY (10-year). Rates change frequently — request a live quote for the most accurate offer.
- How are MYGAs different from bank CDs?
- MYGAs grow tax-deferred (no 1099-INT each year), often pay higher rates than comparable-term CDs, and are issued by insurance companies rather than banks. CDs are FDIC-insured; MYGAs are backed by the issuing carrier and state guaranty associations. Withdrawals from a MYGA before age 59½ may trigger a 10% IRS penalty.
- Can I lose money in a MYGA?
- Not from market losses — the rate is guaranteed by the insurance carrier for the entire term. You can lose money if you surrender the contract early and incur surrender charges, or if the issuing carrier becomes insolvent (mitigated by state guaranty associations).
- What happens at the end of the MYGA term?
- You have several options: (1) renew with the same carrier at the then-current rate, (2) take the full surrender value in cash, (3) annuitize for lifetime income, or (4) 1035-exchange tax-free into a new annuity contract with a different carrier.
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