Explore Today’s Best Multi-Year Guaranteed Annuity Rates (MYGA)
Written by
Daria Uhlig
Edited by
Melanie Grafil
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
A multi-year guaranteed annuity can provide some of the retirement income you need to bridge the gap between Social Security and retirement savings. MYGAs also have tax benefits that help maximize that income and preserve your wealth. But with literally hundreds of MYGAs to choose from, finding the best rate can be tricky.
Best Multi-Year Guaranteed Annuity Rates
GOBankingRates has done the research for you and found the best MYGA rates for a variety of contract terms.
2-Year Terms
The rates on these MYGAs are guaranteed for two years.
| Annuity Name | Guaranteed Rate |
|---|---|
| Oceanview Harbourview 2 | 5.25% |
| CL Life CL Sundance 2 | 5.25% |
| Aspida Synergy Choice 2 | 4.85% |
| Silac Secure Savings Elite 2 | 3.90% |
3-Year Terms
Lock in a high rate for three years with these MYGAs.
| Annuity Name | Guaranteed Rate |
|---|---|
| CL Life CL Sundance 3 | 6.00% |
| Atlantic Coast Life Safe Haven 3 | 5.90% |
| Sentinel Security Life Personal Choice 3 | 5.90% |
| American Life American Classic 3 (no withdrawals) | 5.81% |
| American Life American Classic 3 | 5.65% |
| Gainbridge FastBreak™ | |
| S.USA Select Choice 1 (3) (no withdrawals) | 5.40% |
| Silac Secure Savings Elite 3 | 5.40% |
| S.USA Select Choice 3 (3) (free withdrawals) | 5.30% |
| Oceanview Harbourview 3 | 5.25% |
| Aspida Synergy Choice 3 | 5.25% |
| EquiTrust Certainty Select 3 | 5.25% |
Although Gainbridge FastBreak™ is included in the list of 3-year annuities, you can find terms ranging between 3 to 10 years with its annuity offering.
5-Year Terms
Here are the top rates you can earn with a five-year MYGA.
| Annuity Name | Guaranteed Rate |
|---|---|
| American Life American Classics 5 (no withdrawals) | 5.83% |
| Atlantic Coast Life Safe Haven 5 | 5.75% |
| Sentinel Security Life Personal Choice 5 | 5.75% |
| American Life American Classic 5 | 5.70% |
| Nassau MYAnnuity 5X (no withdrawals) | 5.60% |
| CL Life CL Sundance 5 | 5.60% |
| American National Palladium MYG 5 | 5.55% |
7-Year Terms
These MYGAs guarantee excellent rates for seven years.
| Annuity Name | Guaranteed Rate |
|---|---|
| Nassau MYAnnuity 7X (no withdrawals) | 5.65% |
| Sentinel Security Life Personal Choice 7 | 5.60% |
| Atlantic Coast Life Safe Haven 7 | 5.59% |
| American National Palladium MYG 7 | 5.55% |
| Oxford Life Insurance Company Multi-Select 7 | 5.50% |
| Guarantee Income Life Insurance Company Guaranty Rate Lock 7 | 5.50% |
10-Year Terms
Ten years at these rates could give your nest egg a nice lift.
| Annuity Name | Guaranteed Rate |
|---|---|
| EquiTrust Life Insurance Company Certainty Select 10 | 5.60% |
| Atlantic Coast Life Insurance Company Safe Haven 10 | 5.45% |
| Sentinel Security Life Personal Choice 10 | 5.45% |
| American National Palladium MYG 10 | 5.35% |
| Oceanview Harbourview 10 | 5.30% |
| Oxford Life Insurance Company Multi-Select 10 | 5.25% |
What Is a Multi-Year Guaranteed Annuity?
A multi-year guaranteed annuity is an insurance product that offers a guaranteed interest rate on your investment for a certain period of time, and then pays back your principal plus interest. In that sense, a MYGA is similar to a certificate of deposit. However, the MYGA’s growth is tax-deferred — you’re not taxed on the interest that accrues until you withdraw the money after the annuity matures.
Thanks!
One reason investors like MYGAs is that there’s no risk of losing your initial investment. Also, MYGAs provide a death benefit to your beneficiaries if you die after the payout period begins.
Because MYGAs pay a fixed rate of interest and all or most of the funds remain in the annuity until it matures, MYGAs belong to an annuity classification known as fixed deferred annuities.
How Does a Mult-Year Guaranteed Annuity Work?
When you take out a MYGA, you pay the insurance company a single, lump-sum premium, similar to the deposit you make when you take out a CD, which you agree not to withdraw until the annuity matures. In return, the insurance company agrees to pay a guaranteed interest rate for whatever period of time specified in the contract. This period is called an accumulation period, and it might last as as long as 10 years.
The insurance company invests your money during the accumulation period to produce the guaranteed return. When the annuity matures at the end of the accumulation period, you can take out your initial premium plus the interest it earned, or you can roll the money over into a new MYGA contract — or, if the plan allows it, “exchange” the contract for another type of annuity.
How Are Multi-Year Annuities Taxed?
MYGAs are usually non-qualified, meaning you typically pay the premium from after-tax income. Because you’ve already paid tax on the money, you won’t be taxed again on that portion of your eventual payout. However, you will pay tax on the interest your premium earned.
The IRS lets you further defer tax on the interest by exchanging the maturing contract for a new contract without taking the payout. This kind of transaction is called a Section 1035 exchange. The rules can be complicated, so it’s a good idea to discuss this strategy with a fee-based financial advisor to make sure your annuity qualifies and ensure that you receive the tax benefits you expect.
Can I Withdraw Money From My Deferred Annuity?
Technically, yes. Some MYGAs allow you to withdraw a small amount — usually just accrued interest — penalty-free under certain circumstances. However, if your plan doesn’t allow withdrawals, or you withdraw more than the plan allows, you’ll likely pay a surrender fee. How much that fee is depends on the contract, but the further you get into the contract, the lower the penalty is likely to be.
What Happens to My Annuity After the the Surrender-Penalty Period Ends?
You have a few options for what to do with your annuity when it ends. One is to do nothing, in which case the insurance company will probably automatically renew your contract for one year at current rates. Alternatively, you can take your payout; roll the contract directly into a new annuity in a Section 1035 exchange; or annuitize the funds by purchasing a new annuity that gives you a regular stream of income for the rest of your life.
What Happens to My Annuity When I Die?
If you die before your MYGA contract ends, your beneficiaries will receive a death benefit.
What Are the Advantages and Disadvantages of Investing in a MYGA?
Some features of MYGAs make them worth considering for your portfolio, but they also have some drawbacks to consider.
Advantages
MYGAs offer the following benefits:
- You premium is always 100% safe. No matter what happens with the markets or interest rates, you can’t lose your initial investment.
- The rate is guaranteed for the term of the annuity, so you know exactly how much you’ll have at the end of the contract. That’s a definite plus for retirement planning.
- Tax on the interest your MYGA earns is deferred until you take the payout.
- Many MYGAs allow you to withdraw at least a small portion of your balance without penalty.
- MYGA’s provide a death benefit for your beneficiaries
Disadvantages
If you’re considering a MYGA, these disadvantages might give you pause.
- You’ll pay a penalty, and perhaps reduce your annuity’s accumulated market value, if you withdraw more than the plan allows before the annuity term ends or you withdraw money before age 59 and a half.
- Your money might earn a smaller return than you could get from riskier investments, such as stocks.
- Administrative fees can eat into your gains.
- MYGAs carry inflation risk — if the inflation rate is higher than your guaranteed interest rate, your money will lose purchasing power.
- Unlike CDs and other bank products, MYGAs are uninsured. You could lose your principal and earnings if the insurance company you contract with goes under.
Is a MYGA Better Than a CD?
A MYGA could be a better choice if your goal is to defer taxes on your gains — CD interest is taxed in the year it accrues. Also, MYGAs typically earn higher rates than CDs. CDs, on the other hand, typically have no fees.
Are Guaranteed Annuities a Good Idea?
Guaranteed annuities can be good for the right investor. They’re meant to provide retirement income, so people age 60 and older are likely to benefit the most. If you’re in that age group and are already fully funding other tax-deferred retirement accounts, such as a 401(k) and individual retirement account, which might have the potential for higher growth with lower fees, a MYGA might be a good choice. Rates are often higher than rates for other conservative investments, such as CDs, and because they’re guaranteed, you know how much you’ll receive at the end of the term. In addition, you can annuitize your funds after the MYGA ends and receive regular payments for the rest of your life.
The National Association of Insurance Commissioner recommends that you ask the following the questions before buying a MYGA:
- Do I understand the risks of an annuity, and am I comfortable with them?
- Do I understand the potential fees, charges and adjustments?
- Is there a limit on early withdrawals, and if so, might I need the funds before the contract ends?
- Am I taking full advantage of other tax-deferred accounts?
- How will I achieve my financial goal for this annuity if the income is less than I expected it to be?
- How will the annuity affect my tax liability?
- How do I ensure my beneficiaries will receive payment from the death benefit if I die?
If the answers to these questions suggest you’re ready to buy a MYGA, read the contract, the prospectus and any disclosures you receive before you sign. Look for a “free look” or “right to return” period that lets you back out of the contract within a certain period, usually within 30 days or less, if you decide it’s not right for you after all.
Rates are subject to change. All other information on accounts is accurate as of April 10, 2024.
Our in-house research team and on-site financial experts work together to create content that’s accurate, impartial, and up to date. We fact-check every single statistic, quote and fact using trusted primary resources to make sure the information we provide is correct. You can learn more about GOBankingRates’ processes and standards in our editorial policy.
- Annuity Resources. "Best Fixed Annuity Rates."
- Barron's. 2023. "2 Annuities That Are Worth a Look Now."
- Amica. "Multi-Year Guaranteed Annuities (MYGA)."
- ELCO Mutual. "How MYGAs Support Financial Security in Retirement."
- Pillar Life Insurance. "What to Expect When Withdrawing From a MYGA."
- Forbes Advisor. 2024. "What Is An MYGA?"
