MYGA vs CD Spread Index

Compiled by Hans Goldstein, independent licensed insurance producer · CA license 4273294 · NPN 20602398
Published October 4, 2026 · updated monthly · latest data as of September 24, 2026

The index answers one question each month: how much more does a multi-year guaranteed annuity (MYGA) from a highly rated insurer pay than the best CD you can open nationally, and than a Treasury of the same term? Every number below has its own as-of date and source, and the full series is a free CSV download. Reporters and educators may chart and quote it with a link to this page.

October 2026: not yet published. The row is added once that month's 5-year MYGA range and top CD range are recorded from their sources; the index never carries a stale rate forward.

The spread, month by month

Index table

Sources for each row: 5-year MYGA range from AnnuityRateWatch carrier rate data (A-rated-or-better insurers); top CD range from the DepositAccounts 5-year CD table; big-bank CD from capitalone.com; Treasury from the U.S. Treasury daily par yield curve. Rates change often and vary by state, premium and issue age; confirm before you act.

3, 5 and 7-year terms: tracked rate sheets vs Treasuries

For the latest row (September 24, 2026), the highest $100,000+ rate on the public rate sheets I track from insurers rated A- or better, next to the Treasury par yield of the same term:

Each MYGA is backed by the claims-paying ability of the insurer named, not by the FDIC. These are four contracts, not the whole market; the A-rated 5-year market range above is the broader read.

Treasury month-end context

Official month-end par yields, shown so the MYGA and CD numbers can be read against the risk-free rate of the same term.

What the spread means, and what it does not

A wider spread means insurers are paying more than banks for money locked up for the same five years. Insurers price MYGAs off the bonds they buy, so the spread tends to follow corporate bond yields more than the Fed. A spread is not a reason to buy on its own; it is the price of the trade-offs below.

• Not FDIC insured. A MYGA is an insurance contract, not a bank deposit. Its rate and principal guarantees are backed by the financial strength and claims-paying ability of the issuing insurer, with state guaranty associations as a limited backstop (coverage limits vary by state). A bank CD is FDIC insured up to $250,000 per depositor, per bank, per ownership category.
• Surrender charges. Leaving a MYGA early usually costs a surrender charge for the length of the term (often several percent of the contract value in the early years), and many contracts add a market value adjustment. Most allow a free withdrawal each year, commonly the interest or 10%. Breaking a CD usually costs a few months of interest.
• State availability. MYGA rates and contract versions vary by state, premium band and issue age, and some contracts are not sold in every state. A range on this page is the shape of the market, not a quote.
• Tax treatment. MYGA interest is tax-deferred until withdrawn and then taxed as ordinary income; withdrawals of gain before age 59½ can owe an additional 10% federal tax. CD interest is reported on a 1099-INT and taxed every year, even when it stays in the account. Treasury interest is federally taxable but exempt from state income tax.
• Comparability. MYGA rates are effective annual rates and CD figures are APYs, so they compare directly. Treasury par yields are bond-equivalent (semiannual) yields to maturity and are shown for scale. The index compares the top of each range; individual buyers will see different rates.

Methodology

What is measured. Once a month the index records three dated numbers on the same as-of date: (1) the 5-year MYGA rate range paid by insurers rated A or better (A- and up), read by hand from a subscription carrier rate data service (AnnuityRateWatch); (2) the range of the best nationally available 5-year CD APYs, read by hand from a published national CD table (DepositAccounts), with a big-bank 5-year CD (Capital One 60-month) for context; and (3) the 3, 5 and 7-year Treasury par yields from the official U.S. Treasury daily par yield curve file, on the MYGA as-of date or the last trading day before it.

The index value. The Spread Index is the top of the MYGA range minus the top of the CD range, in percentage points. We also publish the low-to-low gap, the gap to the 5-year Treasury and the gap to the big-bank CD, so readers can pick the comparison that fits their story.

3 and 7-year terms. A separate table shows the highest $100,000+ rate on the public rate sheets of Athene (A+), MassMutual (A++), Delaware Life (A-) and New York Life (A++), AM Best ratings as listed in our carrier reviews; confirm current ratings at ambest.com. These sheets are read automatically each week, twice per read, and a sheet is used only once it is in effect. This is a narrow tracked set, not the whole market.

Rules. No value is estimated or carried forward. A month is published only when its MYGA range is dated in that month and the CD range is dated within 21 days of it; otherwise the month is held and marked as not yet published. Published rows are never silently changed; a correction would be added as a dated note. Each row in the CSV carries its own as-of dates and source types.

Series start. The series starts in September 2026 (as of September 24, 2026), the first date for which all three inputs were recorded from named sources on the same day. Earlier MYGA and CD figures on our pages were not recorded this way, so they are not used. Treasury month-end yields are shown from January 2026 for context only.

Related

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• MYGA vs CD: which pays more?
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• Is a MYGA safer than a CD?
• Best 5-year CD rates