Are MYGA rates higher than CD rates?

MYGA rates have historically been higher than comparable CD rates, often by 0.25% to 1.0% or more. The difference reflects the tax-deferred growth benefit and the slightly different risk profile of insurance products vs. FDIC-insured bank deposits.

Can I access my money during the MYGA term?

Most MYGAs allow penalty-free withdrawals of up to 10% of the account value per year. Withdrawals beyond this amount during the surrender period may incur surrender charges. At the end of the term, you can access your full balance without penalty.

What happens if the insurance company fails?

Insurance companies are regulated by state insurance departments and are required to maintain reserves to back their obligations. State guaranty associations provide additional protection up to $250,000 in most states, including West Virginia and Ohio, if an insurance company becomes insolvent.

AG Insurance Guide

MYGA Rates — Comparing Multi-Year Guaranteed Annuity Rates

Multi-year guaranteed annuity (MYGA) rates are among the most straightforward in the annuity market — you receive a guaranteed interest rate for the entire contract term, with no market risk and no complexity. But rates vary significantly between insurance companies, making comparison essential.

What Are MYGA Rates?

A MYGA rate is the annual interest rate guaranteed for the entire contract term — typically 3, 5, or 7 years. Unlike a bank CD rate that may compound monthly, MYGA rates are typically expressed as an annual effective yield. The rate is locked in at the time of purchase and does not change during the contract term, regardless of what happens to interest rates in the broader market.

Current MYGA Rate Environment

MYGA rates are closely tied to the broader interest rate environment. When the Federal Reserve raises rates, MYGA rates tend to rise as well, typically with a lag of a few months. In recent years, MYGA rates have been at their most competitive levels in over a decade, making them an attractive option for conservative savers compared to bank savings accounts and CDs. Contact AG Insurance for current rate comparisons from multiple carriers.

How to Compare MYGA Rates

When comparing MYGA rates, consider the annual effective yield (not just the stated rate), the contract term, the surrender charge schedule, the free withdrawal provision (typically 10% per year), the financial strength rating of the insurance company, and any additional features like return-of-premium death benefits. A slightly lower rate from a financially stronger company may be preferable to a higher rate from a less-rated carrier.

MYGA Rate Laddering Strategy

A MYGA laddering strategy involves purchasing multiple MYGAs with different terms — for example, a 3-year, a 5-year, and a 7-year MYGA. As each contract matures, you can reinvest at current rates or use the funds as needed. This strategy balances the higher rates available on longer terms with the flexibility of having funds available at regular intervals.

Why Work with an Independent Agent for MYGA Rates?

MYGA rates are not publicly listed in a central database — each insurance company sets its own rates, which change frequently. An independent agent like AG Insurance & Financial Solutions monitors rates from multiple carriers and can quickly identify which company is currently offering the best rate for your term preference and premium amount. We serve clients throughout West Virginia, southern Ohio, and eastern Kentucky.

Frequently Asked Questions

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