Where to Park Cash for 10 Years: MYGA + Treasury Ladder
The 10-year decision matrix
| Option | Gross Yield (2026) | Available at 10-yr Term? | 10-Year Cumulative on $250K |
|---|---|---|---|
| HYSA | 4.50% then floats | N/A - floats indefinitely | ~$60,000-$80,000 (rate-path dependent) |
| CD | 4.45% (5-yr) then renew | Rare - most top at 5-7 years | Renewals at unknown future rates |
| 10-year Treasury note | 4.35% | Yes | ~$130,000 gross (state-exempt) |
| 10-year corporate bond (A-rated) | 5.20-5.50% | Yes, but credit risk | ~$170,000 gross |
| 10-year MYGA (A-rated) | 6.05% | Yes, top carriers | ~$200,000 net (tax-deferred compounding) |
Why 10-year MYGAs exist (and CDs don't)
Bank CDs require the bank to fund a 10-year liability with 10-year assets - and banks generally don't carry 10-year duration on their balance sheet. Insurance carriers do: their long-dated annuity liabilities are matched with long-dated corporate bonds, mortgages, and private credit. The 10-year MYGA is structurally the carrier's core product.
So at 10-year terms, the field narrows dramatically. CDs are rare. T-notes exist but pay below corporate-credit alternatives. MYGAs at 5.95-6.15% from A-rated carriers dominate the safe-money options.
Worked example: $250K for 10 years
10-year MYGA at 6.05%, tax-deferred
| Year | Balance End-Year |
|---|---|
| 0 | $250,000 |
| 1 | $265,125 |
| 2 | $281,165 |
| 3 | $298,175 |
| 5 | $335,331 |
| 7 | $377,123 |
| 10 | $450,432 |
Final balance $450,432. If withdrawn lump sum in year 10 at 24% federal + 9.3% CA: tax on $200,432 of interest = $66,744. Net keep = $383,688. Vs $250K starting = $133,688 net of all tax. Effective after-tax CAGR ~4.36%.
10-year HYSA (assuming Fed Funds path)
Assume HYSA averages 3.50% over 10 years (current 4.50% declining to ~2.5% over the cycle). $250K compounded annually at 3.50% = $352,705 gross. Annual tax along the way (33.3% combined) drags net to roughly $327,000. MYGA beats HYSA by ~$56,000 over 10 years on $250K.
The hybrid 10-year structure
For a 10-year horizon with some need for mid-period liquidity, layer the MYGA with a Treasury ladder:
| Tier | Allocation on $500K | Yield | Liquidity |
|---|---|---|---|
| 10-year MYGA (Carrier A) | $200,000 | 6.05% | Locked, 10% annual penalty-free |
| 10-year MYGA (Carrier B) | $150,000 | 5.95% | Locked, 10% annual penalty-free |
| 5-year Treasury (state-exempt) | $75,000 | 4.20% | Secondary market |
| 2-year Treasury (state-exempt) | $50,000 | 3.85% | Secondary market |
| HYSA | $25,000 | 4.50% | Instant |
| Blended | $500,000 | ~5.45% | Tiered |
What about equities for 10-year money?
If the money is genuinely 10-year horizon and you can absorb interim volatility, a balanced portfolio (60% stocks / 40% bonds) historically returns 6-8% annualized. That's 100-200 bps above MYGA, with the trade-off of -20% to -30% drawdowns during recessions.
The honest answer: 10-year cash is unusual. Most savers who say they want 10-year cash either (a) don't actually need it for 10 years and would benefit from shorter ladders with rebalancing, or (b) have a real 10+ year retirement income need that's better served by a fixed-indexed annuity or balanced portfolio than by pure cash equivalents.
When pure cash for 10 years makes sense
- Retirement income bucket year 5-15. A retiree using the bucket strategy puts years 5-15 of distributions into a 10-year MYGA, locking the rate and avoiding sequence-of-returns risk.
- Court-ordered structured settlements. Court-mandated annuities for personal injury proceeds. MYGAs commonly used.
- Special needs trusts. Trust must remain conservative; can't take equity risk.
- Capital preservation requirement. A trust or LLC mandate requires preservation of principal; equities not allowed.
Carrier selection at 10 years
10-year MYGAs deserve more carrier diligence than 3-5 year contracts. Look for:
- AM Best rating A or better (A+ preferred)
- Long operating history (20+ years)
- Healthy reserves and surplus (publicly available in insurer financials)
- State guaranty fund coverage in your state ($250K-$300K)
Top names in the 10-year MYGA space for 2026: Athene, Symetra, Sammons Financial (Midland National), Equitrust, Reliance Standard, Americo, North American. Diversify across 2+ carriers if total position exceeds $250K.
Related reading
- Where to park cash for 5 years
- How to build a retirement cash bucket
- CD ladder vs MYGA ladder
- Safe money pyramid explained
Frequently Asked Questions
Do 10-year MYGAs really exist?
Yes, from top A-rated carriers. Athene, Symetra, Sammons, Equitrust, and others offer 7-10 year MYGAs in 2026. Yields run 5.80-6.20% depending on carrier and term.
What is the surrender schedule on a 10-year MYGA?
Typically declining over the full 10 years: 9-9-8-7-6-5-4-3-2-1-0%. Plus market value adjustment. Most include a 10% annual penalty-free withdrawal provision throughout.
Can my IRA hold a 10-year MYGA?
Yes. Common structure for retirees in their 60s-70s using MYGAs as the conservative tier of an IRA. The MYGA provides rate certainty; the IRA wrapper provides tax deferral - though MYGAs already defer, so the wrapper is redundant for tax purposes.
Are 10-year corporate bonds better than 10-year MYGAs?
10-year A-rated corporates pay slightly less than MYGAs (5.20-5.50% vs 6.05%) and lack the state guaranty fund backstop. Munis offer tax-exempt yields that can match MYGA on after-tax basis in high-tax states. Pure cash-equivalent ranking still favors MYGA.
What is sequence-of-returns risk and how does a MYGA help?
Sequence-of-returns is the risk that bad investment years early in retirement deplete the portfolio before recovery. A 10-year MYGA bucket guarantees a known income stream for years 5-15 of retirement, insulating the equity portfolio from forced selling during downturns.
Is a 10-year MYGA the same as a 10-year SPIA?
No. MYGA = principal accumulates, withdrawn at end (or laddered). SPIA = principal converted to immediate monthly income for life or a fixed period. Different products for different goals - MYGA for accumulation, SPIA for guaranteed income.
What if interest rates rise during my 10-year MYGA?
You're locked at your contract rate. Rising rates after issue hurt MYGA holders relative to alternatives but don't change the absolute return. The opposite risk (rates falling) is the larger one for safe-money buyers, and the MYGA insulates against it.
Want a second opinion on your cash strategy?
Talk to a licensed independent advisor. Hans.
HYSA yields move with Fed Funds. MYGA lock windows close fast when the cycle turns. The difference between a good and a great cash strategy on $250K+ over 5 years is usually $20,000-$50,000 in real interest. Worth a 15-minute conversation.
Drop your info and you will get a written allocation review across HYSA, CD, MYGA, and T-bill options — and a no-pressure 15-minute call if you want one.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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Disclosure
This article reflects publicly available rates, products, and tax law as of 2026-06-27. HYSA yields, CD rates, MYGA rates, and FDIC/state guaranty fund limits change frequently. Always confirm current values against the most recent provider disclosures and tax law before acting. This article is general information for educational purposes; it is not a personalized recommendation, solicitation, or offer of any specific product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers across the annuity and long-term care insurance market. No compensation has been received from any bank, credit union, or insurance carrier in connection with the publication of this article. Always read the actual contract or account disclosure and consult a licensed advisor or tax professional before making material cash-management decisions. Past rate environments do not predict future rates.