How does a MYGA differ from a bank CD?

Both offer a guaranteed rate for a fixed term. The key differences are that MYGAs grow tax-deferred, which delays your tax bill until withdrawal, and MYGA rates are often higher than comparable bank CDs. CDs are FDIC insured; MYGAs are backed by the issuing insurance company and covered by state guaranty associations.

Can I lose money in a MYGA?

Not from interest rate changes or market performance. Your principal and the guaranteed rate are contractually fixed. The main risk is carrier insolvency, which is mitigated by choosing a highly rated company and staying within your state guaranty association coverage limits.

What happens at the end of my MYGA term?

At the end of the guarantee period, you typically have a window (often 30 days) to surrender the contract, roll it into a new MYGA, or annuitize it for income. If you take no action, most contracts automatically renew at the current rate or convert to a shorter term. Review your contract terms carefully.

Are MYGA withdrawals flexible?

MYGAs are designed for long-term accumulation, not short-term liquidity. Most allow 10 percent annual penalty-free withdrawals, but taking out more triggers surrender charges. Required minimum distributions from an IRA-held MYGA can usually be satisfied through the free withdrawal provision.

Can I hold a MYGA inside an IRA?

Yes. MYGAs are frequently used inside traditional and Roth IRAs. When held in a qualified account, the tax-deferral benefit of the annuity itself is redundant, but the guaranteed rate and principal protection remain valuable. The IRA contribution limits and distribution rules still apply.

How does a MYGA differ from a bank CD?

Both offer a guaranteed rate for a fixed term. The key differences are that MYGAs grow tax-deferred, which delays your tax bill until withdrawal, and MYGA rates are often higher than comparable bank CDs. CDs are FDIC insured; MYGAs are backed by the issuing insurance company and covered by state guaranty associations.

Can I lose money in a MYGA?

Not from interest rate changes or market performance. Your principal and the guaranteed rate are contractually fixed. The main risk is carrier insolvency, which is mitigated by choosing a highly rated company and staying within your state guaranty association coverage limits.

What happens at the end of my MYGA term?

At the end of the guarantee period, you typically have a window (often 30 days) to surrender the contract, roll it into a new MYGA, or annuitize it for income. If you take no action, most contracts automatically renew at the current rate or convert to a shorter term. Review your contract terms carefully.

Are MYGA withdrawals flexible?

MYGAs are designed for long-term accumulation, not short-term liquidity. Most allow 10 percent annual penalty-free withdrawals, but taking out more triggers surrender charges. Required minimum distributions from an IRA-held MYGA can usually be satisfied through the free withdrawal provision.

Can I hold a MYGA inside an IRA?

Yes. MYGAs are frequently used inside traditional and Roth IRAs. When held in a qualified account, the tax-deferral benefit of the annuity itself is redundant, but the guaranteed rate and principal protection remain valuable. The IRA contribution limits and distribution rules still apply.

Multi-Year Guaranteed Annuities

Lock In a Guaranteed Rate for Years at a Time

Q: What is a MYGA annuity?

A multi-year guaranteed annuity (MYGA) is a type of fixed annuity that pays a guaranteed interest rate for a set number of years, typically 2 to 10. It works similarly to a CD but offers tax-deferred growth, often higher rates, and no annual contribution limits.

MYGAs offer a fixed interest rate for a set term, tax-deferred growth, and no market exposure. A predictable alternative to CDs.

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$449BTotal U.S. annuity sales in 2025

100%Principal protected in down markets

50States covered

A-RatedAM Best carriers only

Guaranteed Fixed Rate

Your interest rate is locked in for the full term of the contract, typically 2-10 years. You know exactly what rate you will earn from day one, with no surprises.

Tax-Deferred Growth

Like a traditional IRA, interest grows without being taxed each year. You defer taxes until withdrawal, making MYGAs efficient for long-term retirement accumulation.

No Market Exposure

MYGAs are not linked to any index or market performance. Your rate is fixed and your principal is protected by the financial strength of the issuing carrier.

How Do They Compare?

Feature	Fixed Indexed Annuity (FIA)	MYGA
Growth type	Index-linked (with cap or spread)	Fixed interest rate
Principal protection	Yes, floor at 0%	Yes, fully protected
Rate type	Variable (tied to index performance)	Fixed for full term
Best for	Growth potential + downside protection	Predictable, CD-like returns
Typical term	5-10 years	2-10 years
Liquidity	Surrender charges during term	Surrender charges during term

Growth type

FIA

Index-linked (with cap or spread)

MYGA

Fixed interest rate

Principal protection

FIA

Yes, floor at 0%

MYGA

Yes, fully protected

Rate type

FIA

Variable (tied to index performance)

MYGA

Fixed for full term

Best for

FIA

Growth potential + downside protection

MYGA

Predictable, CD-like returns

Typical term

FIA

5-10 years

MYGA

2-10 years

Liquidity

FIA

Surrender charges during term

MYGA

Surrender charges during term

MYGA Articles and Guides

MYGA7 min read

What Is a MYGA Annuity and Who Should Buy One

A multi-year guaranteed annuity locks in a fixed interest rate for a set term, growing your money tax-deferred without any market risk. Here is who it makes sense for and how to evaluate one.

Read article →

MYGA7 min read

Best MYGA Rates: How to Find and Compare Them

MYGA rates vary significantly across carriers and terms. Knowing where to look, what to compare, and what pitfalls to avoid makes a meaningful difference in what you actually earn.

Read article →

Common Questions About MYGAs

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