MYGA Rates and What Actually Drives Them
A multi-year guaranteed annuity locks one interest rate for a set number of years. No market exposure, no index, no participation rate — a number, a term, and a contract. It is the closest thing the insurance industry has to a CD, and it is usually the highest guaranteed rate available on money you can leave alone for three years or more.
Where the market sits in September 2026: the top 5-year MYGA is around 6.3%. Most A-rated carriers are between 5.0% and 5.75%. The best 5-year CDs are around 4.5% to 4.6%. Rates change weekly and by state, so treat those as the shape of the market rather than a quote.
Why the top rate is often a carrier you have not heard of
MYGA rates are priced off what the carrier can earn on its own bond portfolio, minus what it needs to keep. A smaller carrier growing its book will price aggressively to win deposits. A large household-name carrier with plenty of assets has no reason to.
That is not automatically a warning. It does mean the rating and the state guaranty limit matter more when you are reaching for the top of the sheet. A 6.3% contract from a B++ carrier and a 5.6% contract from an A carrier are different products, not the same product at different prices.
The four numbers that decide a MYGA, in order
- The term. Match it to when the money is actually needed. This decides more outcomes than the rate does.
- The surrender schedule. Year-by-year percentages, and whether a market value adjustment applies on top.
- The free withdrawal. Most contracts allow 10% a year without charge. Some allow interest only. A few allow nothing in year one.
- The rate. Last, because the first three decide whether you ever actually receive it.
Rate bands: the mistake that costs the most
Many carriers publish one rate under $100,000 and a higher one above it. Depositing $95,000 instead of $100,000 can cost 15 to 25 basis points for the whole term. Before funding, ask where the bands are.
How a MYGA compares on the same money
| Instrument | Backing | Tax while growing | Early access |
|---|---|---|---|
| MYGA | Carrier + state guaranty association | Deferred | Surrender charge, usually 10% a year free |
| Bank CD | FDIC $250,000 | Taxed annually | Interest penalty |
| Treasury | U.S. government | Taxed annually, state-tax exempt | Sell at market price |
| High-yield savings | FDIC $250,000 | Taxed annually | Immediate |
The deferral is the part people underestimate. In a 32% bracket, a MYGA and a CD at the same headline rate do not produce the same money, because the CD is taxed every year on interest you have not spent. See annuity vs CD for the side-by-side.
What happens at the end of the term
This is where most of the value is won or lost. At maturity you can take the money, renew at the carrier's new rate, or move it to another carrier under a 1035 exchange without triggering tax. Renewal rates are frequently well below what a new buyer is offered. Put the maturity date in your calendar the day you fund the contract; carriers are not required to call you, and a contract that quietly renews at 3% undoes years of good work.
Getting an actual quote
Published rate tables go stale within days and vary by state, deposit size and age. I run live comparisons across the carriers I am appointed with — tell me the amount, the state, and how long the money can sit, and I will send back the current top three with the surrender schedules next to them, not just the rates.
Related reading
- Annuity vs CD, compared
- Fixed annuity rates explained
- Annuity reviews by carrier and product
- CD reviews
Want my independent take on whether this fits your situation?
I'm Hans Goldstein — independent licensed insurance producer (NPN 20602398), appointed with multiple A-rated carriers. I run side-by-side comparisons against CDs, MYGAs, Treasuries, and MMFs every week for retirees and pre-retirees. Tell me what you're considering and I'll send back a written comparison.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
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FAQ
What is a good MYGA rate right now?
As of September 2026 the top of the market on a 5-year MYGA is around 6.3%, with most A-rated carriers landing between 5.0% and 5.75%. Rates move weekly and the best rate is frequently from a carrier you have not heard of, which is why the rating matters as much as the number.
What is a MYGA?
A multi-year guaranteed annuity is a fixed annuity that guarantees one interest rate for a set term, usually 2 to 10 years. It is the insurance industry's equivalent of a CD, with tax deferral instead of FDIC insurance.
Do MYGA rates change after you buy?
No, not during the guarantee period. The rate you lock is contractual for the full term. What changes is the renewal rate at the end of the term, which is why the end-of-term decision matters as much as the purchase.
What is the minimum to buy a MYGA?
Most carriers start between $10,000 and $25,000. Some publish a higher rate above $100,000, so a deposit just under a band break can cost you real yield.