Best MYGAs of 2026: Multi-Year Guaranteed Annuity Guide

What is a MYGA?

A multi-year guaranteed annuity (MYGA) is a fixed annuity that locks in one guaranteed interest rate for a set term, typically 3, 5, 7 or 10 years. You deposit a lump sum with an insurance company, and your money grows tax-deferred with no market risk.

Think of a MYGA as an insurer’s version of a bank CD: the rate is usually higher, the interest grows tax-deferred, and it is backed by the insurer and your state guaranty association instead of the FDIC. Unlike a traditional fixed annuity, which may reset its rate after year one, a MYGA keeps one rate for the whole term.

Today’s top MYGA rates run from 5.25% on a 2-year contract to 7.10% on a 7-year contract, depending on term length, deposit amount and carrier rating. If your money sits in a bank CD, compare: the best 5-year CD pays 4.60% today, versus 7.00% for the best 5-year MYGA.

How Does a MYGA Work?

A MYGA works in three simple steps: you deposit a lump sum, the insurance company guarantees a fixed interest rate for the full term, and your money grows tax-deferred until you withdraw it.

Here is what a 5-year MYGA actually looks like in practice. Mary, age 62, has $200,000 in a maturing CD earning 3.75%. She moves it into a 5-year MYGA paying 5.50%.

Mary’s $200,000 grows to $261,392 over 5 years, a guaranteed gain of $61,392. She pays no taxes on the interest until she withdraws it. Open the MYGA calculator to run your own numbers.

Are MYGAs Safe?

MYGAs are among the safest places to put retirement money. Your principal cannot decline because of market activity. The insurance company is contractually obligated to honor your rate for the full term, and three layers of protection sit behind that promise.

Layer 1: Insurance company reserves. Insurance carriers are required by state law to hold reserves backing every annuity contract they issue. Most top-rated carriers maintain reserve ratios well above legal minimums. Use AM Best, Moody’s, S&P, and Comdex scores to evaluate carrier strength before buying.

Layer 2: State guaranty associations. If an insurance company becomes insolvent, the state guaranty association in your state covers annuity contracts up to a stated limit, most commonly $250,000 in present-value benefits per owner per insurer.

Layer 3: Diversification across carriers. If you have more than the guaranty limit to invest, you can split it across two or three different top-rated carriers and get full coverage on each contract.

MYGAs are not FDIC-insured. They are insurance products, not bank deposits.

MYGA Rates in 2026

The best MYGA rates today range from 5.25% for 2 years to 7.10% for 7 years, paid as simple interest (about 5.93% compounded annually). Rates change daily as carriers reprice in response to Treasury yields and reserve requirements.

Top rates by term as of October 23, 2026: 3-year 6.50% (Mountain Life, simple interest), 5-year 7.00% (Mountain Life, simple interest), 7-year 7.10% (Knighthead Life, simple interest), 10-year 6.30% (Revol One Financial).
For the most current rates from 90+ top annuity companies, see our live tables:

• Best 3-Year MYGA Rates
• Best 5-Year MYGA Rates
• Best 7-Year MYGA Rates
• Best 10-Year MYGA Rates
• Compare All MYGA Rates

Best MYGAs of 2026: Editor’s Picks

The best MYGA depends on what matters most to you: rate, carrier strength, withdrawal flexibility or minimum deposit. We compare products from 90+ top annuity companies on rate, AM Best rating, surrender schedule and free withdrawals.

For full carrier ratings and product lineups, browse the complete list of 90+ top annuity companies or our annuity reviews database.

MYGA vs. CD: Which Pays More?

MYGAs typically pay 1-2 percentage points more than equivalent-term CDs and offer tax-deferred growth, while CDs are FDIC-insured and CD interest is taxed annually. For non-IRA money, the tax deferral advantage often makes MYGAs the clear winner.

For a deeper dive, see our full side-by-side breakdown of fixed annuities vs. CDs and run the numbers in our Fixed Annuity vs. CD Calculator.

MYGA vs. Treasury Bonds and High-Yield Savings

MYGAs typically out-yield Treasury notes and high-yield savings accounts of similar duration, while Treasuries offer state-tax-free interest and unmatched liquidity, and high-yield savings offers full liquidity. The right choice depends on your tax situation and how soon you need the money.

If you live in a high-tax state and the money sits in a non-qualified account, Treasury bonds may close the gap. If you need full liquidity, high-yield savings is the answer. For everything in between, MYGAs usually win on after-tax math.

MYGA vs. Fixed Annuity: What’s the Difference?

A MYGA is a type of fixed annuity that locks in one guaranteed rate for the full term, while a traditional fixed annuity often guarantees a rate only for the first year and resets annually after that. Every MYGA is a fixed annuity, but not every fixed annuity is a MYGA.

The practical difference: with a MYGA you know your rate for the entire term on day one. With a non-MYGA fixed annuity, your rate after year one depends on what the carrier decides to credit, subject only to a contractual minimum. A non-MYGA fixed annuity can sometimes pay more if rates rise, though most do not. See our complete fixed annuity guide for the full breakdown.

Who Should Buy a MYGA?

MYGAs are best for retirees and pre-retirees aged 55-75 who want guaranteed growth, principal protection, and tax-deferred compounding on money they don’t need for at least 3-10 years.

You are probably a good fit for a MYGA if any of these describe you:

• You have $50,000 or more sitting in CDs, money market, or savings earning less than 4%.
• You want predictable growth without market risk for the next 3-10 years.
• You are 5-10 years from retirement and want to lock in a guaranteed rate before the next rate cycle.
• You want tax-deferred growth on non-qualified money outside of an IRA or 401(k).
• You have IRA money you want to move out of the stock market into something with a guaranteed rate.

You are probably not a good fit for a MYGA if:

• You need full liquidity (use high-yield savings instead).
• You are under age 50 and want long-term equity-like growth.
• You will need the principal in less than 3 years.

How MYGAs Are Taxed

MYGA earnings grow tax-deferred and are taxed as ordinary income only when withdrawn. If the MYGA is held outside an IRA, withdrawals before age 59½ may incur a 10% IRS penalty on the gain in addition to ordinary income tax.

Two scenarios cover most MYGA buyers:

Non-qualified (after-tax) money. Your principal is already taxed, so only the interest is taxable on withdrawal. Tax deferral compounds your growth for the full term. At withdrawal, gains are treated as ordinary income, not capital gains.

Qualified (IRA / 401(k)) money. Both principal and earnings are pre-tax. The full withdrawal is taxed as ordinary income. There is no additional layer of tax deferral because IRAs are already tax-deferred, but the rate guarantee and principal protection still apply.

Surrender Charges and Free Withdrawal Rules

MYGA surrender charges typically start at 8-9% in year one and decline 1% per year until they reach zero at the end of the contract term. Most MYGAs allow a free annual withdrawal of 10% of the contract value with no surrender charge.

A typical 7-year MYGA surrender charge schedule looks like this:

The surrender charge applies only to amounts withdrawn above the free withdrawal allowance during the surrender period. After the surrender period ends, you can withdraw any amount with no charge. Read the full breakdown of how annuity surrender charges work.
Schedules vary by carrier. Some front-load steeper early charges, a few use a flat schedule, and some allow only interest-only withdrawals instead of 10%. Each product page in our live MYGA rate table lists its surrender schedule, or contact our team for a side-by-side comparison.

MYGA Laddering Strategy

A MYGA ladder is the strategy of splitting a lump sum across multiple MYGAs with staggered terms (typically 3, 5, and 7 years) so that one contract matures every few years. This gives you regular access to a portion of your principal without surrender charges and the flexibility to reinvest at prevailing rates as each contract matures.

Here is what a $300,000 MYGA ladder might look like:

Every two years a contract matures, giving you the option to take cash, reinvest into a new long-term contract at current rates, or move the money to a different vehicle. Laddering is the standard playbook for retirees who want predictable growth plus periodic flexibility. See our full annuity laddering guide.

Market Value Adjustment (MVA) and Return of Premium (ROP)

Two MYGA features confuse buyers more than any others: market value adjustment and return of premium. Both change how the contract behaves if you exit early, so look closely before you sign.

Market Value Adjustment (MVA). An MVA is a feature that adjusts your surrender value up or down based on how interest rates have moved since you bought the contract. If rates have risen since issue, an MVA reduces your surrender value. If rates have fallen, an MVA can increase it. MVA-equipped MYGAs typically pay slightly higher base rates because the carrier is sharing some interest-rate risk with you. If you intend to hold to maturity, MVA is a non-issue.

Return of Premium (ROP). Return of premium is a contractual guarantee that you can never receive less than your original deposit at any point in the contract, even if you surrender early during the surrender period. ROP is a powerful feature for risk-averse buyers but typically comes with a slightly lower base rate.

Not every MYGA includes an MVA, and not every MYGA includes ROP. Read the contract carefully or work with a licensed agent who will translate the language for you.

How to Choose a MYGA Term Length

The right MYGA term length depends on three things: when you’ll need the money, your view on where interest rates are heading, and how much liquidity flexibility you want during the contract.

A simple decision framework:

• Need the money in 3-4 years? A 3-year MYGA. Lower rate, but you’re back in cash before life changes.
• 5-7 year horizon and you think rates have peaked? A 5- or 7-year MYGA. Lock in today’s rate before they decline. This is the most common choice for retirees in 2026.
• 10+ year horizon (often IRA money)? A 10-year MYGA. Maximum rate lock, ideal for money you won’t touch.
• Want the flexibility of multiple maturity dates? A 3-5-7 ladder. Sacrifice a small amount of yield for predictable access to portions of principal.

Inflation is the often-overlooked factor. If you expect inflation to run hot for the next decade, a longer-term MYGA at today’s rate may underperform. If you expect inflation to remain near 2-3%, today’s MYGA rates of up to 7.10% produce solid real returns.

How to Buy a MYGA: Step-by-Step

Buying a MYGA is a straightforward five-step process that typically takes 7-14 business days from quote to issued contract.

1. Compare current rates and carriers. Use our live MYGA rate table to see what’s available today across 90+ top annuity companies. Filter by term, AM Best rating, and minimum premium.
2. Pick a contract that fits your goals. Match the term to when you’ll need the money. Confirm the surrender schedule, free withdrawal allowance, and any MVA or ROP features.
3. Submit an application. Most MYGAs require basic personal information, beneficiary designations, and an indication of premium source (cash, IRA, 1035 exchange).
4. Fund the contract. Wire funds, mail a check, or initiate a custodian-to-custodian transfer for IRA or 1035 money. The clock on your guaranteed rate typically starts the day funds are received in good order.
5. Receive your contract and review. Most states give you a “free look” period (typically 10-30 days) during which you can return the contract for a full refund if you change your mind.

For a deeper how-to walkthrough, see How to Buy an Annuity (Without Getting Ripped Off) or book a free 15-minute call with our team.

How to Buy a MYGA with an IRA Rollover

You can fund a MYGA with Traditional IRA, Roth IRA, SEP IRA, or 401(k) rollover money using a direct trustee-to-trustee transfer, with no taxes owed at the time of rollover. The MYGA simply becomes the new vehicle holding your IRA dollars.

The four-step IRA rollover process:

1. Choose a qualified MYGA. Confirm the carrier accepts IRA money (almost all do) and that the contract is set up as an IRA, Roth IRA, or 401(k) rollover at issue.
2. Complete a rollover/transfer form. Your new carrier sends a transfer request to your existing IRA custodian (Schwab, Fidelity, Vanguard, Edward Jones, etc.). You sign once.
3. Funds move directly between custodians. The money never touches your hands. Because it’s a direct transfer (not a 60-day rollover), there is no withholding and no reportable distribution.
4. The MYGA contract is issued in your IRA’s name. Required minimum distributions (RMDs) for Traditional IRAs continue as normal at age 73, and the MYGA can satisfy them either through partial withdrawals or by annuitizing a portion of the contract.

One nuance: Roth IRA MYGAs grow tax-free, not just tax-deferred. If you’re rolling Roth money, the tax deferral the MYGA provides is duplicative, but the rate guarantee and principal protection still make sense for the right buyer.

Frequently Asked Questions About MYGAs

Sources and Citations

• U.S. Securities and Exchange Commission. Investor Bulletin: Annuities.
• FINRA. Annuities Investor Education.
• Internal Revenue Service. Publication 575: Pension and Annuity Income.
• National Association of Insurance Commissioners. Buyer’s Guide for Deferred Annuities (Fixed).
• National Organization of Life and Health Insurance Guaranty Associations. Policyholder Information and State Guaranty Association Coverage.

Still have questions? See our complete annuity FAQ with 45 answers covering rates, taxes, surrender charges, RMDs, ladders, 1035 exchanges, and more.

Cost note: Wondering about price? See our full breakdown on how much a fixed annuity costs in 2026, MYGAs have zero annual fees.