Best 3-Year MYGA 2026, Short-Term Yield Without the Lockup

Quick take: On carrier rate sheets effective October 5 to 14, 2026, 3-year MYGAs from carriers rated A or better paid 5.40% to 5.75% at $100,000+ (Athene MaxRate 5.75%, MassMutual Stable Voyage 5.40%). The best nationally available 3-year CDs paid about 4.40% to 4.55% APY. MYGAs are backed by the insurer and your state's guaranty association, not the FDIC.

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CD vs MYGA, after tax

What $100,000 earns in 3 years: CD vs MYGA, after tax

AmountYears3 years5 years7 yearsCD rate (%)Federal bracket10%12%22%24%32%35%37%State tax (%)

Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.65%, the best A-rated rate we track as of October 13, 2026: Athene MaxRate 3-year (AM Best A+), $100,000 and up, effective September 25, 2026 (Athene rate card).

CD, interest taxed every year	$112,162
MYGA, tax-deferred, before tax	$117,926
MYGA after paying tax on all the interest at withdrawal	$113,982
Tax deferral alone adds about	$170
MYGA ahead of the CD, after tax	$1,820

Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge. In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.

Ratings (independent third-party)

Rating Agency	Grade
AM Best	Various
S&P	Various
Moody's	Various
COMDEX (composite, 0-100)	Various

Hans is independently licensed. Reviews are based on publicly available rate sheets, prospectuses, public carrier rate sheets, and carrier filings.

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3-year MYGAs as of June 2026 (not current)

Carrier	Product	AM Best	Rate	Free Withdrawal
Wichita National	Security 3	B+	5.85%	0%/0%
NexAnnuity	Nex3	B+	5.75%	0%/0%
Farmers Life	Safeguard Plus 3	B++	5.65%	0%/0%
Revol One	DirectGrowth 3	B++	5.55%	0%/0%
CL Life	Sundance 3	B++	5.50%	Int/Int
Knighthead	KH 3	A-	5.30%	10%/10%
Reliance Standard	Eleos 3	A+	5.25%	10%/10%
Penn Mutual	Diversified 3	A+	5.15%	10%/10%
Aspida	WealthLock 3	A-	~5.10%	10%/10%

3-year MYGA vs 5-year vs CD

Product	3-yr Rate	5-yr Rate	Effective Yield (32% tax bracket)
Top B+ 3-yr MYGA	5.85%	6.25% (5-yr)	~5.85% (tax-deferred)
Top A- 3-yr MYGA	5.30%	5.85% (5-yr)	~5.30% (tax-deferred)
Top 3-yr CD	4.20%	4.40%	~2.86% (annually taxed)

After taxes, a 3-year MYGA's effective yield usually beats a 3-year CD by 200+ bps.

When 3-year MYGA wins

• You want short-term yield without market risk
• You might need the money in 3 years
• You want to ladder and roll forward at maturity
• You're in a high tax bracket, where deferral helps

When 5-year wins

• You can hold for 5 years
• You want the higher rate (6.25% B+ vs 5.85%)
• See Why 5-Year MYGAs Win

Not sure a lock is right yet?

If the money is currently in savings, the first question is not which MYGA, it is whether to lock at all. HYSA or MYGA for 3-year money runs the $250,000 math both ways, including the annual 1099-INT and the IRMAA effect a HYSA balance can create.

Where to buy

Call me at 213-414-2808 and I'll compare current 3-year MYGA rates across 5+ carriers rated A-, A+ and B++.

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About Hans Goldstein: Independent retirement income specialist. CA Life License #4273294. NPN #20602398. Reviews 30+ carriers. Phone: 213-414-2808. Email: [email protected].

Goldstein Complexity Index

Every annuity I review gets a complexity score from 0 to 100. Higher means harder to understand. Complexity is where buyers get hurt: riders they didn't know they were paying for, surrender charges that surprise them, and income "benefit bases" they took for cash. SPIAs and MYGAs score low. Products that stack a bonus, an income rider, an MVA and several crediting options score high.

This product's score: 8/100, Grade A+ (Transparent)

Easy to understand. Few moving parts. The buyer can fully explain the product to a friend after one read of the contract.

Score breakdown

Dimension	Score (1-10)	What this measures
Riders	1/10	How many riders, optional or built in (income, death benefit, LTC). Each one adds cost and one more thing to understand.
Crediting strategies	1/10	How many index options (cap, spread, participation rate, step rate, volatility-controlled indices). More choices are harder to follow.
Surrender complexity	1/10	Length of the surrender period, plus any MVA and bonus recapture. The longer and more layered it is, the harder it is to know what leaving early costs.
Benefit-base separation	1/10	Whether there is a separate income base ("PIV") that is not cash but looks like it. This causes more buyer confusion than anything else.
Bonus structure	1/10	A premium bonus with a recapture schedule. The bonus is real, but you can lose part of it if you leave early.

How to read this

• A+/A (0-40): Easy to understand. A pure accumulation FIA, a MYGA or a SPIA. Little room for mis-selling.
• B (41-60): Read the contract carefully and get a second opinion before signing. Income riders cause most of the confusion.
• C (61-80): Many owners don't fully understand what they bought. Common mis-sells: a bonus presented as cash, a benefit base presented as account value, surrender charges glossed over.
• D (81-100): Get an independent second opinion before signing. The product may still fit you, but the odds you later say "I didn't know it worked that way" are high.

Why it matters: nobody gets sued for selling a complicated product, but buyers regret them all the time. An annuity that wins your money in year one and confuses you for the next 14 is worse than a simpler one you understood from the start. Simple products are easier to check.

Annuities in plain terms

An annuity is an insurance contract. You pay a premium, in one lump sum or over time, and get one of three things back:

• Lifetime income (SPIA: pay once, get a check every month for life)
• Tax-deferred growth with downside protection (FIA: index-linked interest with a cap and a 0% floor)
• A fixed rate for a set term (MYGA: works like a CD, with the tax deferred)

The carrier pays for these out of its bond portfolio and, for FIAs, an option budget that buys the index-linked credit.

Every annuity trades liquidity and growth for certainty. A SPIA gives the most certainty (income for life), but you give up access to the principal. An FIA protects the downside but caps the growth. A MYGA locks the rate but ties up the money for the term.

Quick FAQ

Q: Are annuities ever "good investments"?
A: Yes, when used for what they do well: income certainty, downside protection or a locked rate. They go wrong when sold for something else, like a SPIA pitched for "growth."

Q: What's the difference between immediate and deferred annuities?
A: An immediate annuity (SPIA) starts paying within 12 months of purchase. A deferred annuity grows for years before payments begin.

Q: Who regulates annuities?
A: State insurance commissioners. (RILAs are also FINRA-regulated as securities.)

Q: What's the state guaranty fund limit?
A: Usually $250,000 to $300,000 per owner per carrier, depending on the state. Splitting a large purchase across carriers keeps each piece inside the limit.

Q: How do I compare annuities side-by-side?
A: Compare the carrier's ratings (AM Best, S&P, Moody's, Fitch, Weiss, KBRA composite), the Goldstein Complexity Index, the carrier's renewal-rate record, its service, and how the structure fits what you need the money to do.

Q: When should I get a second opinion?
A: Before you sign any annuity over $50,000. An independent review costs nothing and can save you thousands.

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Disclosure

This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.