Today's top 5-year MYGA rates
| Carrier | Product | AM Best | APY |
|---|---|---|---|
| Athene | MaxRate 5 | A+ | 6.05% |
| F&G | Guarantee-Platinum 5 | A- | 5.95% |
| Nationwide | Secure Growth 5 | A+ | 5.75% |
Why 5 years is the sweet spot
The 5-year term sits where insurance carriers can match liabilities to intermediate-duration bonds at favorable spreads, which usually translates into the best risk-adjusted yield in the MYGA market. Going from a 3-year to a 5-year term typically adds 30–60 basis points of APY; extending from 5 to 10 years usually only adds another 25–45 basis points.
Liquidity inside a 5-year MYGA
Most 5-year MYGAs allow penalty-free withdrawals of up to 10% of the contract value each year starting in year two. Withdrawals above that amount are subject to a declining surrender charge schedule (typically 9% in year one, stepping down to 0% by maturity).
Compare against a shorter term on our 3-year MYGA rates page, or read how a 5-year MYGA stacks up against bank CDs in our MYGA vs CD comparison.
Frequently asked questions
- What is the best 5-year MYGA rate today?
- Today's top 5-year MYGA APY from an A-rated carrier is approximately 6.05%. Rates can change weekly and depend on your state, age, and premium amount.
- Is a 5-year MYGA a good investment?
- For money you don't need for at least five years, a 5-year MYGA is often the highest-paying guaranteed instrument available. It typically beats 5-year bank CDs by 50–150 basis points and grows tax-deferred. The trade-offs are limited liquidity (surrender charges if you withdraw more than the 10% annual free amount) and the absence of FDIC insurance.
- How is interest paid on a 5-year MYGA?
- Interest compounds inside the contract for the full 5 years. You don't receive a 1099-INT each year — taxes are deferred until you withdraw. At the end of the term you can renew, surrender, annuitize for income, or 1035-exchange into a new annuity.
- What's the minimum to open a 5-year MYGA?
- Most A-rated carriers have minimum premiums between $10,000 and $25,000 for a 5-year MYGA. Higher premiums sometimes qualify for a small rate bump (typically +5 to +15 basis points at $100k+).
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