Today's Best Multi-Year Guaranteed Annuities (MYGAs)

Select your age and state of residence and click "Update" to see which MYGA products are available in your state and for your age.

COMPLETE LIST OF MULTI-YEAR GUARANTEED ANNUITIES (MYGAs)

September 29, 2022
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Surrender
Fee Period
Minimum Premium Annual
Rate
AM Best
Rating
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Atlantic Coast Life
Safe Haven 10 (MVA)
10 yrs. $5,000 *4.75 % B++
Sentinel Security Life
Personal Choice Annuity 10 (MVA)
10 yrs. $2,500 **4.75 % B++
Oxford Life
Multi-Select 10 (MVA)
10 yrs. $20,000 4.50 % A
Oceanview
Harbourview 10 High-Band (MVA)
10 yrs. $80,000 **4.50 % A-
Oceanview
Harbourview 10 Low-Band (MVA)
10 yrs. $20,000 4.30 % A-
Equitrust Life
Certainty Select 10 (MVA)
10 yrs. $10,000 4.30 % B++
American General
VisionMYG 10 High-Band (MVA)
10 yrs. $100,000 4.25 % A
Pacific Guardian
Diamond Head 10
10 yrs. $10,000 4.20 % A
Reliance Standard
Reliance Guarantee 10 (MVA)
10 yrs. $20,000 4.15 % A++
Clear Spring
Preserve MYGA 10 High-Band (MVA)
10 yrs. $250,000 4.15 % A-
Clear Spring
Preserve MYGA 10 Low-Band (MVA)
10 yrs. $10,000 4.05 % A-
American National
Palladium MYG 10 High-Band (MVA)
10 yrs. $250,000 *3.95 % A
Guaranty Income LIC
Guaranty Rate Lock 10 (MVA)
10 yrs. $100,000 3.85 % B++
Guaranty Income LIC
Guaranty Rate Lock 10 (MVA)
10 yrs. $250,000 3.85 % B++
American National
Palladium MYG 10 Low-Band (MVA)
10 yrs. $100,000 *3.80 % A
Lincoln National
MYGuarantee Plus 10 High-Band (MVA)
10 yrs. $100,000 **3.60 % A+
Lincoln National
MYGuarantee Plus 10 Low-Band (MVA)
10 yrs. $10,000 **3.30 % A+
American General
VisionMYG 10 Low-Band (MVA)
10 yrs. $10,000 3.20 % A
Oxford Life
Multi-Select 9 (MVA)
9 yrs. $20,000 4.50 % A
Liberty Bankers Life
Bankers Elite 9 (MVA)
9 yrs. $10,000 4.40 % A-
Pacific Guardian
Diamond Head 9
9 yrs. $10,000 4.10 % A
Clear Spring
Preserve MYGA 9 High-Band (MVA)
9 yrs. $250,000 4.10 % A-
Clear Spring
Preserve MYGA 9 Low-Band (MVA)
9 yrs. $10,000 4.00 % A-
American National
Palladium MYG 9 High-Band (MVA)
9 yrs. $250,000 *3.95 % A
Minnesota Life
SecureOption Choice 9 High-Band (MVA)
9 yrs. $100,000 **3.85 % A+
Guaranty Income LIC
Guaranty Rate Lock 9 (MVA)
9 yrs. $100,000 3.85 % B++
Guaranty Income LIC
Guaranty Rate Lock 9 (MVA)
9 yrs. $250,000 3.85 % B++
American National
Palladium MYG 9 Low-Band (MVA)
9 yrs. $100,000 *3.80 % A
Minnesota Life
SecureOption Choice 9 Low-Band (MVA)
9 yrs. $25,000 **3.70 % A+
Oxford Life
Multi-Select 8 (MVA)
8 yrs. $20,000 4.65 % A
Equitrust Life
Certainty Select 8 (MVA)
8 yrs. $10,000 4.25 % B++
Pacific Guardian
Diamond Head 8
8 yrs. $10,000 4.10 % A
Clear Spring
Preserve MYGA 8 High-Band (MVA)
8 yrs. $250,000 4.05 % A-
American National
Palladium MYG 8 High-Band (MVA)
8 yrs. $250,000 *3.95 % A
Clear Spring
Preserve MYGA 8 Low-Band (MVA)
8 yrs. $10,000 3.95 % A-
Guaranty Income LIC
Guaranty Rate Lock 8 (MVA)
8 yrs. $100,000 3.85 % B++
Guaranty Income LIC
Guaranty Rate Lock 8 (MVA)
8 yrs. $250,000 3.85 % B++
American National
Palladium MYG 8 Low-Band (MVA)
8 yrs. $100,000 *3.80 % A
Midland National Life
Guarantee Pro 7 High-Band (MVA)
7 yrs. $100,000 4.70 % A+
North American
Guarantee Plus 7 High-Band (MVA)
7 yrs. $100,000 4.70 % A+
Sentinel Security Life
Personal Choice Annuity 7 (MVA)
7 yrs. $2,500 **4.70 % B++
Atlantic Coast Life
Safe Haven 7 (MVA)
7 yrs. $5,000 *4.69 % B++
Nassau
MYAnnuity 7x (MVA)
7 yrs. $10,000 4.65 % B++
Americo
Platinum Assure Series 7 (MVA)
7 yrs. $20,000 4.60 % A
Oceanview
Harbourview 7 High-Band (MVA)
7 yrs. $80,000 **4.50 % A-
Midland National Life
Guarantee Pro 7 Low-Band (MVA)
7 yrs. $20,000 4.40 % A+
Nationwide
Secure Growth 7 High-Band (MVA)
7 yrs. $100,000 4.40 % A+
North American
Guarantee Plus 7 Low-Band (MVA)
7 yrs. $20,000 4.40 % A+
Oxford Life
Multi-Select 7 (MVA)
7 yrs. $20,000 4.40 % A
Brighthouse Financial
Fixed Rate Annuity 7 High-Band (MVA)
7 yrs. $100,000 4.35 % A
Reliance Standard
Reliance Guarantee 7 (MVA)
7 yrs. $20,000 4.30 % A++
Liberty Bankers Life
Bankers Elite 7 (MVA)
7 yrs. $10,000 4.30 % A-
Oceanview
Harbourview 7 Low-Band (MVA)
7 yrs. $20,000 4.30 % A-
Nationwide
Secure Growth 7 Low-Band (MVA)
7 yrs. $10,000 4.25 % A+
American General
VisionMYG 7 High-Band (MVA)
7 yrs. $100,000 4.25 % A
Fidelity & Guaranty
FG Guarantee-Platinum 7 Annuity (MVA)
7 yrs. $20,000 4.25 % A-
Sagicor
Milestone MYGA 7 High-Band (MVA)
7 yrs. $100,000 **4.25 % A-
Brighthouse Financial
Fixed Rate Annuity 7 Low-Band (MVA)
7 yrs. $25,000 4.10 % A
United of Omaha
Ultra-Premier 7 (MVA)
7 yrs. $25,000 4.10 % A+
Pacific Guardian
Diamond Head 7
7 yrs. $10,000 4.10 % A
Sagicor
Milestone MYGA 7 Low-Band (MVA)
7 yrs. $50,000 **4.10 % A-
Great American
SecureGain 7 (MVA)
7 yrs. $100,000 *4.04 % A+
Clear Spring
Preserve MYGA 7 High-Band (MVA)
7 yrs. $250,000 4.00 % A-
American National
Palladium MYG 7 High-Band (MVA)
7 yrs. $250,000 *3.95 % A
Clear Spring
Preserve MYGA 7 Low-Band (MVA)
7 yrs. $10,000 3.90 % A-
Great American
SecureGain 7 (MVA)
7 yrs. $10,000 *3.89 % A+
Guaranty Income LIC
Guaranty Rate Lock 7 (MVA)
7 yrs. $100,000 3.85 % B++
Guaranty Income LIC
Guaranty Rate Lock 7 (MVA)
7 yrs. $250,000 3.85 % B++
American National
Palladium MYG 7 Low-Band (MVA)
7 yrs. $100,000 *3.80 % A
The United States Life Ins. Co.
SolutionsMYG 7 High-Band (MVA)
7 yrs. $100,000 3.80 % A
New York Life
Secure Term MVA II 7 High-Band (MVA)
7 yrs. $100,000 3.75 % A++
Minnesota Life
SecureOption Choice 7 High-Band (MVA)
7 yrs. $100,000 **3.70 % A+
Delaware Life
Pinnacle MYGA 7 (MVA)
7 yrs. $10,000 3.70 % A-
Investors Heritage
Heritage Builder MYGA 7 (MVA)
7 yrs. $25,000 3.65 % B++
Lincoln National
MYGuarantee Plus 7 High-Band (MVA)
7 yrs. $100,000 **3.60 % A+
Minnesota Life
SecureOption Choice 7 Low-Band (MVA)
7 yrs. $25,000 **3.55 % A+
Lincoln National
MYGuarantee Plus 7 Low-Band (MVA)
7 yrs. $10,000 **3.30 % A+
American General
VisionMYG 7 Low-Band (MVA)
7 yrs. $10,000 3.20 % A
The United States Life Ins. Co.
SolutionsMYG 7 Low-Band (MVA)
7 yrs. $10,000 3.05 % A
Oceanview
Harbourview 6 High-Band (MVA)
6 yrs. $80,000 **4.80 % A-
Atlantic Coast Life
Safe Haven 6 (MVA)
6 yrs. $5,000 *4.67 % B++
Oxford Life
Multi-Select 6 (MVA)
6 yrs. $20,000 4.55 % A
Americo
Platinum Assure Series 6 (MVA)
6 yrs. $20,000 4.45 % A
Oceanview
Harbourview 6 Low-Band (MVA)
6 yrs. $20,000 4.45 % A-
American National
Palladium MYG 6 High-Band (MVA)
6 yrs. $250,000 *4.40 % A
American National
Palladium MYG 6 Low-Band (MVA)
6 yrs. $100,000 *4.25 % A
Sagicor
Milestone MYGA 6 High-Band (MVA)
6 yrs. $100,000 **4.25 % A-
Equitrust Life
Certainty Select 6 (MVA)
6 yrs. $10,000 4.20 % B++
Pacific Guardian
Diamond Head 6
6 yrs. $10,000 4.05 % A
Sagicor
Milestone MYGA 6 Low-Band (MVA)
6 yrs. $50,000 **4.05 % A-
American General
VisionMYG 6 High-Band (MVA)
6 yrs. $100,000 4.00 % A
Clear Spring
Preserve MYGA 6 High-Band (MVA)
6 yrs. $250,000 3.95 % A-
Clear Spring
Preserve MYGA 6 Low-Band (MVA)
6 yrs. $10,000 3.85 % A-
Guaranty Income LIC
Guaranty Rate Lock 6 (MVA)
6 yrs. $100,000 3.85 % B++
Guaranty Income LIC
Guaranty Rate Lock 6 (MVA)
6 yrs. $250,000 3.85 % B++
New York Life
Secure Term MVA II 6 High-Band (MVA)
6 yrs. $100,000 3.75 % A++
The United States Life Ins. Co.
SolutionsMYG 6 High-Band (MVA)
6 yrs. $100,000 3.75 % A
American General
VisionMYG 6 Low-Band (MVA)
6 yrs. $10,000 3.15 % A
The United States Life Ins. Co.
SolutionsMYG 6 Low-Band (MVA)
6 yrs. $10,000 3.00 % A
Atlantic Coast Life
Safe Haven 5 (MVA)
5 yrs. $5,000 *4.65 % B++
Sentinel Security Life
Personal Choice Annuity 5 (MVA)
5 yrs. $2,500 **4.65 % B++
Midland National Life
Guarantee Pro 5 High-Band (MVA)
5 yrs. $100,000 4.60 % A+
North American
Guarantee Plus 5 High-Band (MVA)
5 yrs. $100,000 4.60 % A+
Nassau
MYAnnuity 5x (MVA)
5 yrs. $10,000 4.55 % B++
SBLI
ECAccumulate 5 (MVA)
5 yrs. $25,000 4.50 % A
Nationwide
Secure Growth 5 High-Band (MVA)
5 yrs. $100,000 4.40 % A+
Americo
Platinum Assure 5 (MVA)
5 yrs. $10,000 4.40 % A
Americo
Platinum Assure Series 5 (MVA)
5 yrs. $20,000 4.40 % A
Midland National Life
Guarantee Pro 5 Low-Band (MVA)
5 yrs. $20,000 4.35 % A+
North American
Guarantee Plus 5 Low-Band (MVA)
5 yrs. $20,000 4.35 % A+
American National
Palladium MYG 5 High-Band (MVA)
5 yrs. $250,000 *4.35 % A
Reliance Standard
Reliance Guarantee 5 (MVA)
5 yrs. $20,000 4.30 % A++
Brighthouse Financial
Fixed Rate Annuity 5 High-Band (MVA)
5 yrs. $100,000 4.30 % A
Oceanview
Harbourview 5 High-Band (MVA)
5 yrs. $80,000 **4.30 % A-
Nationwide
Secure Growth 5 Low-Band (MVA)
5 yrs. $10,000 4.25 % A+
Liberty Bankers Life
Bankers Elite 5 (MVA)
5 yrs. $10,000 4.25 % A-
Sagicor
Milestone MYGA 5 High-Band (MVA)
5 yrs. $100,000 **4.25 % A-
American National
Palladium MYG 5 Low-Band (MVA)
5 yrs. $100,000 *4.20 % A
Oxford Life
Multi-Select 5 (MVA)
5 yrs. $20,000 4.20 % A
United of Omaha
Ultra-Premier 5 (MVA)
5 yrs. $25,000 4.15 % A+
Fidelity & Guaranty
FG Guarantee-Platinum 5 Annuity (MVA)
5 yrs. $20,000 4.15 % A-
American Equity
GuaranteeShield 5 (MVA)
5 yrs. $10,000 4.10 % A-
Oceanview
Harbourview 5 Low-Band (MVA)
5 yrs. $20,000 4.10 % A-
Brighthouse Financial
Fixed Rate Annuity 5 Low-Band (MVA)
5 yrs. $25,000 4.05 % A
Great American
SecureGain 5 (MVA)
5 yrs. $100,000 *4.00 % A+
American General
VisionMYG 5 High-Band (MVA)
5 yrs. $100,000 4.00 % A
Pacific Guardian
Diamond Head 5
5 yrs. $10,000 4.00 % A
Sagicor
Milestone MYGA 5 Low-Band (MVA)
5 yrs. $50,000 **4.00 % A-
Equitrust Life
Certainty Select 5 (MVA)
5 yrs. $10,000 4.00 % B++
Guaranty Income LIC
Guaranty Rate Lock 5 (MVA)
5 yrs. $100,000 3.95 % B++
Guaranty Income LIC
Guaranty Rate Lock 5 (MVA)
5 yrs. $250,000 3.95 % B++
Clear Spring
Preserve MYGA 5 High-Band (MVA)
5 yrs. $250,000 3.90 % A-
Mass Mutual
Stable Voyage 5 (MVA)
5 yrs. $100,000 3.80 % A++
Great American
SecureGain 5 (MVA)
5 yrs. $10,000 *3.80 % A+
Clear Spring
Preserve MYGA 5 Low-Band (MVA)
5 yrs. $10,000 3.80 % A-
New York Life
Secure Term MVA II 5 High-Band (MVA)
5 yrs. $100,000 3.75 % A++
The United States Life Ins. Co.
SolutionsMYG 5 High-Band (MVA)
5 yrs. $100,000 3.75 % A
Lincoln National
MYGuarantee Plus 5 High-Band (MVA)
5 yrs. $100,000 **3.60 % A+
Minnesota Life
SecureOption Choice 5 High-Band (MVA)
5 yrs. $100,000 **3.60 % A+
Mass Mutual
Stable Voyage 5 (MVA)
5 yrs. $10,000 3.55 % A++
Investors Heritage
Heritage Builder MYGA 5 (MVA)
5 yrs. $25,000 3.50 % B++
Minnesota Life
SecureOption Choice 5 Low-Band (MVA)
5 yrs. $25,000 **3.45 % A+
Delaware Life
Pinnacle MYGA 5 (MVA)
5 yrs. $10,000 3.40 % A-
Lincoln National
MYGuarantee Plus 5 Low-Band (MVA)
5 yrs. $10,000 **3.30 % A+
American General
VisionMYG 5 Low-Band (MVA)
5 yrs. $10,000 3.15 % A
The United States Life Ins. Co.
SolutionsMYG 5 Low-Band (MVA)
5 yrs. $10,000 3.00 % A
Oxford Life
Multi-Select 4 (MVA)
4 yrs. $20,000 4.30 % A
Oceanview
Harbourview 4 High-Band (MVA)
4 yrs. $80,000 **4.25 % A-
Americo
Platinum Assure Series 4 (MVA)
4 yrs. $20,000 4.20 % A
Sagicor
Milestone MYGA 4 High-Band (MVA)
4 yrs. $100,000 **4.10 % A-
Oceanview
Harbourview 4 Low-Band (MVA)
4 yrs. $20,000 4.05 % A-
Pacific Guardian
Diamond Head 4
4 yrs. $10,000 4.00 % A
Clear Spring
Preserve MYGA 4 High-Band (MVA)
4 yrs. $250,000 3.85 % A-
Sagicor
Milestone MYGA 4 Low-Band (MVA)
4 yrs. $50,000 **3.85 % A-
Mass Mutual
Stable Voyage 4 (MVA)
4 yrs. $100,000 3.80 % A++
American General
VisionMYG 4 High-Band (MVA)
4 yrs. $100,000 3.75 % A
Clear Spring
Preserve MYGA 4 Low-Band (MVA)
4 yrs. $10,000 3.75 % A-
New York Life
Secure Term MVA II 4 High-Band (MVA)
4 yrs. $100,000 3.70 % A++
Guaranty Income LIC
Guaranty Rate Lock 4 (MVA)
4 yrs. $100,000 3.65 % B++
Guaranty Income LIC
Guaranty Rate Lock 4 (MVA)
4 yrs. $250,000 3.65 % B++
Mass Mutual
Stable Voyage 4 (MVA)
4 yrs. $10,000 3.55 % A++
American General
VisionMYG 4 Low-Band (MVA)
4 yrs. $10,000 3.00 % A
Midland National Life
Guarantee Pro 3 High-Band (MVA)
3 yrs. $100,000 4.05 % A+
North American
Guarantee Plus 3 High-Band (MVA)
3 yrs. $100,000 4.05 % A+
American National
Palladium MYG 3 High-Band (MVA)
3 yrs. $250,000 4.05 % A
Oxford Life
Multi-Select 3 (MVA)
3 yrs. $20,000 4.00 % A
Pacific Guardian
Diamond Head 3
3 yrs. $10,000 4.00 % A
Oceanview
Harbourview 3 High-Band (MVA)
3 yrs. $80,000 **4.00 % A-
Guaranty Income LIC
Guaranty Rate Lock 3 (MVA)
3 yrs. $100,000 3.95 % B++
Guaranty Income LIC
Guaranty Rate Lock 3 (MVA)
3 yrs. $250,000 3.95 % B++
Brighthouse Financial
Fixed Rate Annuity 3 High-Band (MVA)
3 yrs. $100,000 3.90 % A
American National
Palladium MYG 3 Low-Band (MVA)
3 yrs. $100,000 3.90 % A
Fidelity & Guaranty
FG Guarantee-Platinum 3 Annuity (MVA)
3 yrs. $20,000 3.90 % A-
Sagicor
Milestone MYGA 3 High-Band (MVA)
3 yrs. $100,000 **3.90 % A-
Mass Mutual
Stable Voyage 3 (MVA)
3 yrs. $100,000 3.80 % A++
Clear Spring
Preserve MYGA 3 High-Band (MVA)
3 yrs. $250,000 3.80 % A-
Americo
Platinum Assure Series 3 (MVA)
3 yrs. $20,000 3.75 % A
Liberty Bankers Life
Bankers Elite 3 (MVA)
3 yrs. $10,000 3.75 % A-
American Equity
GuaranteeShield 3 (MVA)
3 yrs. $10,000 3.70 % A-
Clear Spring
Preserve MYGA 3 Low-Band (MVA)
3 yrs. $10,000 3.70 % A-
New York Life
Secure Term MVA II 3 High-Band (MVA)
3 yrs. $100,000 3.65 % A++
Brighthouse Financial
Fixed Rate Annuity 3 Low-Band (MVA)
3 yrs. $25,000 3.65 % A
Midland National Life
Guarantee Pro 3 Low-Band (MVA)
3 yrs. $20,000 3.65 % A+
Oceanview
Harbourview 3 Low-Band (MVA)
3 yrs. $20,000 3.65 % A-
Sagicor
Milestone MYGA 3 Low-Band (MVA)
3 yrs. $50,000 **3.65 % A-
Minnesota Life
SecureOption Choice 3 High-Band (MVA)
3 yrs. $100,000 **3.60 % A+
North American
Guarantee Plus 3 Low-Band (MVA)
3 yrs. $20,000 3.60 % A+
Mass Mutual
Stable Voyage 3 (MVA)
3 yrs. $10,000 3.55 % A++
Great American
SecureGain 3 (MVA)
3 yrs. $100,000 3.55 % A+
Minnesota Life
SecureOption Choice 3 Low-Band (MVA)
3 yrs. $25,000 **3.45 % A+
Great American
SecureGain 3 (MVA)
3 yrs. $10,000 3.30 % A+
Delaware Life
Pinnacle MYGA 3 (MVA)
3 yrs. $10,000 3.15 % A-
Equitrust Life
Certainty Select 3 (MVA)
3 yrs. $10,000 3.10 % B++
Investors Heritage
Heritage Builder MYGA 3 (MVA)
3 yrs. $25,000 2.00 % B++
Americo
Platinum Assure Series 2 (MVA)
2 yrs. $20,000 3.55 % A
Oceanview
Harbourview 2 High-Band (MVA)
2 yrs. $80,000 **3.50 % A-
Oceanview
Harbourview 2 Low-Band (MVA)
2 yrs. $20,000 3.30 % A-

* Effective (average over duration) rate displayed.
** Rate may be lower in certain states.

Scan today's lists of the best Multi-year Guaranteed Annuities - MYGAs (updated Thursday, 2022-09-29). These lists are sorted by the surrender fee period. We revise these lists daily and there are frequent changes. Please bookmark this page and come back to it often.

For expert help with multi-year guaranteed annuities call 800-872-6684 or click a 'Get My Quote' button next to any annuity in these lists.

+Click To Read Our Tutorial On Multi-Year Guaranteed Annuities

Q. What is a multi-year guaranteed annuity (MYGA)?

A multi-year guaranteed annuity is a single-premium fixed rate deferred annuity. It’s a contract between you and an insurance company. You make one lump-sum investment, decide when you want it to pay out. You’ll already know how much money you’ll receive, and when.

A MYGA, also called a fixed deferred annuity, might be a good tool for money you don’t need to spend right away, so you get more money later. They’re offered for terms lasting from 3 to 10 years.

You’ll also enjoy tax advantages that bank accounts and CDs don’t offer.

Q. Am I able to make withdrawals from my deferred annuity?

Yes. In most cases deferred annuities allow an amount to be withdrawn penalty-free. However, the allowable withdrawal amount can differ from company-to-company, so be sure to read the product brochure carefully. Deferred annuities typically allow either penalty-free withdrawals of your earned interest, or penalty-free withdrawals of 10% of your contract value each year.

Q. Will I be charged a penalty if I withdraw my entire policy early? What if I find a better deal for the money I’ve invested in my MYGA?

Yes. The earlier in the annuity period, the higher the penalty percentage, referred to as surrender fees. That’s one reason why it’s best to stick with the annuity, once you commit to it.

You can pull out everything to reinvest it, but before you do, make sure that you’ll still come out on top that way, even after you figure in the surrender fee.

Q. What fees will be charged for surrendering the contract and over what time period?

Most deferred annuity contract have pre-set declining surrender fees that range in time horizon (usually 3-10 years). The surrender charge could be as high as 10% if you surrender your contract in the first year. Oftentimes, the surrender fee will decline by 1% each contract year. A surrender fee would be charged to any withdrawal greater than the penalty-free amount allowed by your deferred annuity contract.

Q. Am I able to access my money in the case of an emergency?

With some MYGAs, you can make early withdrawals for emergencies, such as health expenses for a serious illness, or confinement to a nursing home. Early withdrawal terms in MYGAs vary a great deal, so make sure you understand what you can and cannot do before you settle on a particular annuity. Once you do, it’s best to see it through to the end.

Q. What options do I have for generating income payments from my annuity?

First, you can set up “systematic withdrawals” from your annuity. This means that the insurance company will send you payments of interest monthly, quarterly or annually. Using this strategy will not tap into your original principal.

Your other option is to “annuitize” your deferred annuity. This means that you are converting your deferred annuity to an immediate annuity. This opens up a variety of payout options, such as income over a single lifetime, joint lifetime, or for a specified period of years. Many deferred annuities allow you to annuitize your contract after the first contract year.

Q. How does a deferred annuity differ from a Bank Certificate of Deposit (CD)?

A major difference is in the tax treatment of these products. Interest earned on CDs is taxable at the end of each year (unless the CD is held within tax qualified account like an IRA).

Q. How do MYGA rates compare to CD rates?

Usually, MYGAs offer higher interest rates than CDs, and compound interest increases the difference. Also, the interest is not taxed until it is removed from the annuity. In other words, your annuity grows tax deferred and the interest is compounded each year. However, comparison shopping is always a good idea.

Q. CDs are insured by the FDIC. Are MYGAs also insured?

It’s true that CDs are insured by the FDIC. However, MYGAs are insured by the individual states — usually, in the range of $100,000 to $500,000. It’s a good idea to research your state guaranty association before you invest.

Q. What are my choices at the end of the annuity surrender charge period?

You have several options. Either you take your money in a lump sum, reinvest it in another annuity, or you can annuitize your contract, converting the lump sum into a stream of income. By annuitizing, you will only pay taxes on the interest you receive in each payment.

In most cases, you have 30 days to inform the insurance company of your intentions. If you don’t give any instructions to the insurance company then the annuity will automatically renew at the interest rate available at that time.

If you decide to take a lump sum, keep in mind that you may be pushed into a higher tax bracket in the year that you receive it.

Q. What happens to my annuity if I die?

Most deferred annuities offer your beneficiaries an option of withdrawing the full account value (death benefit) without incurring any surrender fees. Several companies offer spousal continuance, meaning if you list your spouse as the primary beneficiary, they will be able to take ownership of the polcy after your death.

Additionally, some contract will allow beneficiaries to convert the lump sum to an immediate annuity. These features can vary from company-to-company, so be sure to explore your annuity’s death benefit features.

Q. What are the advantages of purchasing a MYGA?

There are several advantages.

1. A MYGA can mean lower taxes than a CD. With a CD, the interest you earn is taxable when you earn it, even though you don’t receive it until the CD matures. With a MYGA, you don’t owe taxes until the end of the annuity period. So at the very least, you pay taxes later, rather than sooner. Not only that, but the compounding interest will be based on an amount that has not already been taxed.

2. Your beneficiaries will receive the full account value as of the date you die—and no surrender charges will be deducted. The beneficiaries are the people you name when you establish the annuity who will receive the money if you die before the annuity is scheduled to pay. Your beneficiaries can choose either to receive the payout in a lump sum, or in a series of income payments.

3. Often, when someone dies, even if he left a will, a judge decides who gets what from the estate as sometimes relatives will argue about what the will means. That’s called probate. It can be a long, complicated, and very expensive process. People go to great lengths to avoid it. But with a multi-year fixed annuity, the owner has clearly designated a beneficiary, so no probate is required. The money goes directly to the beneficiary, no questions asked.

Q. How is this any better than just making a contribution to an IRA?

If you contribute to an IRA or a 401(k) plan, you receive tax deferral on the earnings, just like a MYG

A. However, there is no contribution limit for MYGAs, whereas Annual contribution amounts to IRAs and 401(k)s are capped by law.

Q. What kind of person does a MYGA suit best? What kind of person is NOT right for a MYGA?

Usually, MYGAs suit retirees or people nearing retirement. That’s because the IRS imposes a 10% penalty on gains you withdraw from your MYGA if the owner is under age 59 1/2. This penalty applies only to the gains—not the initial investment amount. That penalty does not apply on withdrawals if the owner is at least 59 1/2. However, the maximum age for purchasing a MYGA is often 80-85 years.

So if you are younger, invest only the funds you will not need until after age 59 1/2. These could be 401(k) rollovers or money you hold in IRA accounts. But those products already offer tax deferral.

MYGAs are great for people who want to avoid the risks of market fluctuations, and want a fixed return and tax deferral. If your time horizon extends at least three years, then you are a candidate for a MYGA, especially if tax deferral is an important feature to you.

They might be less suitable for younger people; people who may need or want the money sooner; and people who would rather take bigger risks, in hope of getting bigger returns.

Q. If I buy an MYGA, is my money safe? How do I know what interest rate I will get? What are the risks?

When you buy an annuity from a high-quality insurance company, your investment is safe, and so is your return. In fact, with a MYGA, your biggest risk is that the insurance company you buy from might fail. So it’s especially critical that you choose a stable provider. Our website lists the most up-to-date information from credit rating agencies on the soundness of the insurance companies who offer annuities.

Also, your state insures up to a certain limit. If you want to invest more than the state-insured limit, and you are concerned about the risks, you can divide your initial payment among multiple insurers, setting up separate annuities and spreading the risk.

As for the interest rate, we offer a comprehensive selection of contracts from many insurance companies, with different terms and interest rates. When you decide on one, the interest rate will be fixed and guaranteed for the term you select.

Q. What does the insurer do with my money?

The insurer invests it, usually in high quality long-term bonds, to fund your future payments under the annuity. That’s because bonds are quite safe. But they can also invest in stocks. Remember, the insurer is relying not just on your individual payment to fund your annuity. Insurance companies have very large, professionally managed, diversified portfolios that represent premiums from many customers who have bought all kinds of insurance products from them. The insurance company pools those premiums. If the company is on solid footing, any loss in their portfolio will not affect your payments. On the other hand, if the insurer invests very successfully, you won’t share in any of that gain. Your payments are fixed.

Q. What’s the least and the most I can invest? What does it cost me?

MYGAs require you to invest from as little as $2,500 to as much as $1 million or more. Sales agents usually receive commissions of 1% to 3% on MYGAs, much lower than some other kinds of annuities. These commissions are built into the purchase price, so there are no hidden fees in the MYGA contract.

In fact, deferred annuities do not charge fees of any kind, or sales charges either.

Q. Can MYGAs be part of a larger strategy?

Sure. In the recent environment of low interest rates, some MYGA investors build “ladders.” That means buying multiple annuities with staggered terms. This way, they come due at regular intervals and the proceeds can be reinvested in the hope of catching an upswing in interest rates. For example, if you opened MYGAs of 3-, 4-, 5- and 6-year terms, you would have an account maturing annually after three years. At the end of the term, your money could be withdrawn or put into a new annuity--with luck, at a higher rate.

You can also use MYGAs in ladders with fixed-indexed annuities, a strategy that seeks to maximize yield while also protecting principal. Of course, this strategy requires a fair amount of free cash.

And, of course, within your portfolio, you can include MYGAs together with stock and bond mutual funds, CDs, and other types of investments. MYGAs can be a very helpful element of your overall retirement planning.

Q. How financially secure is the insurance company?

A company’s financial strength can be an indicator of its future reliability. Be sure to review each insurance company’s financial ratings (A.M. Best, S&P, Moody’s).

As you compare and contrast illustrations offered by various insurance companies, take into consideration each of the areas listed above when making your final decision. Understanding contract terms as well as each annuity's advantages and disadvantages will enable you to make the best decision for your financial situation.

Q. What else do I need to know about MYGAs?

Think carefully about the term. During periods of low interest rates, some investors opt for shorter terms, in hopes that they can renew at a higher rates. If interest rates have risen, you may want to lock them in for a longer term.

Q. Suppose I do go through with it—but then, I realize it was a mistake?

Most state laws allow you at least 10 days to change your mind. This is called a "free look" period. During this time, you can get all of your money back. This should be prominently stated in your contract. Be sure to read it carefully during this period, if you have not already done so.

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Comments (26)

  1. Chris
    2015-04-07 12:30:08

    I bought a $70,000 annuity a few years ago, to last over 7 years. If I close it out early and I'm under 59, will I lose any of the principal $70K with any penalties? I've already made one interest earnings withdrawal last year. But wondering if "penalty" by IRS and insurance company for early closure will touch the $70,000.

  2. Hersh Stern (ImmediateAnnuities.com)
    2015-04-07 12:35:15

    Hi Chris-

    Sounds like you bought a "deferred" annuity with a 7-year surrender charge period. I'm assuming you paid for your annuity with savings, not IRA or 401k monies. So your annuity is what we call "non-qualified."

    Since you were able to withdraw the interest easily, it appears your annuity permits penalty-free withdrawals of interest during the 7 years. But you are not yet 59-1/2, so there is a 10% federal tax penalty on the interest you withdrew even though the insurance company was okay about it. Those are two separate issues.

    Regarding whether you can cancel your annuity during the 7 years without penalties I suggest calling the insurance company. Only the company can tell you whether or not the surrender penalty for early withdrawals will invade your original principal or investment amount. Some annuities do and some don't.

    As far as the IRS is concerned, both regular income taxes and any pre-59-1/2 penalty taxes will only apply to the earnings in your annuity, not to the original after-tax savings you invested.

    Hersh

  3. Chris
    2015-04-07 16:03:21

    Thanks so much, that answered it all! Appreciate your thoughts on it. I didn't even realize I was getting an "annuity" at the time, just some 7 year "thing." (yeah, a novice here)

  4. Betty
    2015-05-21 09:31:37

    I'm 66 years old and have opted to receive a lump sum pension from the company I worked at for 20+ years. I'm considering rolling over 100% into an IRA to avoid paying the taxes. I would then like to take 60% of IRA and buy a deferred annuity. I'm not looking for a long-term investment. I only need an account for safekeeping and to be able to take out money in an emergency. Will I be taxed on the money I withdraw from the deferred annuity? Do you think this is a good idea? I only have 2 weeks to complete my paperwork with my decision. Please advise at your earliest convenience.

  5. Hersh Stern (ImmediateAnnuities.com)
    2015-05-21 09:36:42

    Hi Betty-

    Even a short term (say, 5 year) multiyear deferred annuity would only allow limited withdrawals without surrender fee penalties or costly market value adjustments. Most deferred annuities only permit removal of the annual interest you earn each year (which could be as little as 2% or 3%). Any withdrawals above that amount would be subject to insurance company penalties. There are a few annuities that allow you to withdraw up to 10% a year penalty-free. Call me and I'll review available options with you.

    Regarding taxes, any money you withdraw from your IRA or an IRA annuity would be subject to income taxes. There's simply no way to avoid paying income taxes on money which was contributed by your employer on your behalf and for which no income taxes have been paid yet.

    You can click the following link to read more about taxation in multi-year deferred annuities:

    https://www.immediateannuities.com/taxation-of-annuities/understanding-taxation-fixed-index-multi-year-deferred-annuities.html

    Additionally, it's important to know that in four years (when you reach age 70-1/2) your annuity IRA and other IRA monies will be obliged to distribute 3%-4% a year to you in order to satisfy the Required Minimum Distribution rules. That money will become taxable income.

    You can read more about Required Minimum Distributions here:

    https://www.immediateannuities.com/required-minimum-distribution/

    Finally, you asked whether buying an annuity is a good idea or not. That really depends on many, many considerations. Since you're asking, I think you would be best served if you met with a fee-only financial planner to review your financial situation before you make any big decisions about how to allocate this pension money.

    There is a great article which discusses how you can find a financial planner which you can read here:

    https://www.immediateannuities.com/retirement/how-to-find-a-financial-planner.html

    Best regards,

    Hersh

  6. John
    2015-09-15 10:42:22

    I am 78 and my wife is 70. My primary concern is for my wife. We have $200,000 I would like to invest in an annuity but there is no need to begin receiving monthly payments until I pass. What do you suggest?

  7. Hersh Stern (ImmediateAnnuities.com)
    2015-09-15 10:43:32

    Hi John-

    Since you do not want to withdraw income from an annuity at this time and you are only considering an annuity to provide income to your wife at some unknown future date, I can think of two suggestions:

    1. Don't buy an annuity at this time. Give my contact information to your wife or beneficiaries or executor of your estate and tell them to call me after you are gone when your wife needs income. We can consider an annuity then.

    2. Many companies sell deferred annuities with flexible income start dates. These annuities earn tax-deferred interest until the income stream is turned on. Your wife will be able to convert the annuity into a lifetime income at a future date of her choosing.

    Hersh

  8. Daniel
    2015-11-24 09:29:37

    My wife is 57 and has an IRA. She's considering an annuity. I'm not sure what to do with her money since we really don't need it right away. Your thoughts would be appreciated. Thank you.

  9. Hersh Stern (ImmediateAnnuities.com)
    2015-11-24 09:30:26

    Hi Daniel--

    First, I'd suggest that you meet with a fee-only financial planner to create an overall plan and strategy to attain your and your wife's retirement goals.

    Beyond that, here are some quick "top of the head" ideas:

    If you don't need to tap your wife's IRA to cover your current living expenses, and she's comfortable with the value of her IRA fluctuating (perhaps, wildly) between now and retirement, then investing in the stock market is an option for her to consider.

    On the other hand, if she wants a non-fluctuating, "fixed" return, there are multi-year deferred and indexed annuities, which she could investigate. Keep in mind that your wife's IRA is already tax-deferred and tax-advantaged. So owning an annuity will not improve the tax status of this money.

    An annuity may provide her with a higher guaranteed return than she can find in a bank CD. Her investment in an annuity, however, would be a lot less liquid than the CD. And, the annuity would not be covered by the FDIC.

    Hersh

  10. Randall
    2016-01-07 11:56:17

    Can I use funds from a Roth IRA to pay for a multi-year guaranteed fixed interest rate annuity?

  11. Hersh Stern (ImmediateAnnuities.com)
    2016-01-07 11:56:42

    Hi Randall-

    Yes, that is permitted under the Roth IRA rules. Whether it's a good idea to do that in your financial situation should be discussed with a fee-only financial planner.

    Hersh

  12. Kathy
    2018-10-29 08:40:15

    I am a recent widow looking to reinvest my deceased husbands 401k. I do not need or want a lifetime income guarantee as I have ss and pension and all I want to do is make sure that when I pass all the money in the account including principal and interest is passed on to my heirs and to make sure that I don't loose any principal in the market. I am not planning on withdrawing any money. Please advise on the best plan.

  13. Hersh Stern (ImmediateAnnuities.com)
    2018-10-29 08:43:34

    Hi Kathy,

    There are two options we can offer.

    The first is a Multi-Year Guarantee Annuity (MYGA). A MYGA provides compound growth at a fixed rate from anywhere between 3 and 10 years. The rates usually range anywhere between 1.50% and 4.50% annually. You can see our full list of MYGAs and their rates on the tables above.

    The second option is a Fixed Indexed Annuity (FIA). A FIA's growth depends upon the performance of a stock index. You can never lose money in a FIA as a result of the performance of the underlying index. Providing the index does well, the annuity can make anywhere between 3% and 7% per year. You can read more about FIAs here:

    https://www.immediateannuities.com/fixed-index-annuities/

    For both of these types of annuities, the full account values can be passed on to your heirs upon your death.

    -Hersh

  14. John
    2019-04-22 09:15:41

    Assummuing I invest 500K, when a 3 yr contract is completed, how much money will be returned to me?

  15. Hersh Stern (ImmediateAnnuities.com)
    2019-04-22 09:17:36

    Hi John,

    The highest rate we currently have for a 3 year fixed deferred annuity contract is 3.00%. This would return your premium plus interest at the end of the 3 year period, a total of $546,36. These rates change often, so check this page regularly to see where rates are when you would like to purchase.

    -Hersh

  16. Frank
    2019-09-30 10:43:48

    How much should I care whether a 5 or 10 year MYGA is from a company rated B++ vs A+. I reside in DE.
    Assume the company is licensed in DE and the amount is less than 250000. While there is no FDIC there is the state guaranty.

  17. Hersh Stern (ImmediateAnnuities.com)
    2019-09-30 10:44:48

    You ask a very good question. Even though you might have full coverage from your state guaranty association, I still think that the ratings are part of the equation when deciding which company to buy your annuity from. Some of our clients put a ton of importance on the rating of the insurance company, while others don't care very much. It's basically up to the personal preference of the buyer.

    Obviously, if the interest rates were equal between an "A++" carrier and a "B++" carrier then you would just go with the "A++" carrier. However, with MYGAs you usually find better rates offered buy your "A-" and "B++" companies. In the end, it is about your comfort level for us. We want you to be very confident in, and comfortable with the annuity product you are purchasing.

    -Hersh

  18. Eric
    2021-11-23 17:39:18

    Are RMD's of interest earned in a MYGA ever required?

  19. Kyle (ImmediateAnnuities.com)
    2022-01-28 11:45:22

    Hi Eric,

    You asked: "Are RMD's of interest earned in a MYGA ever required?"

    RMDs would only be required if your MYGA was issued in a pre-tax account, like a Traditional IRA or SEP IRA. If your MYGA is "non-qualified" (funded with after-tax dollars), then you will not have RMDs.

    Please refer to our Required Minimum Distribution (RMD) page for further details: https://www.immediateannuities.com/required-minimum-distribution/

  20. Bill M.
    2022-03-01 19:38:40

    great website.

  21. Theresa D.
    2022-03-08 05:40:32

    So I 'm looking to purchase a MYGA maybe a 3 or 5 year term with about $200,000 and I'm only 49 years old. Will I be permitted to end contract once the term is up and receive my full cash value(premium paid) including interest earned? I would not be forced or restricted to do a 1035 exchange, I could, would just pay taxes on interest, gains from account. This would be non-qualified money to invest. I would not be looking to annuitize.

  22. Kyle (ImmediateAnnuities.com)
    2022-03-08 12:51:15

    Hi Theresa,

    Yes. You will absolutely be able to surrender (or cash out) your annuity at the end of the 3 or 5-year term. There will generally be a 30-day window (or grace period) at the end of your term, during which there will not be any surrender charges or penalties. You will be able to pull out all of your principal plus the earned interest.

    - Kyle

  23. JimmyV
    2022-05-07 16:14:01

    Could I use a MYGA for funds in a ROTH IRA? I want to protect some of the money I have. After the guarantee period, I could reinvest, or start to draw the funds tax free.

  24. Kyle (ImmediateAnnuities.com)
    2022-05-09 14:17:30

    Hi Jimmy,

    Yes, absolutely. You can transfer your Roth IRA directly into a Roth IRA with the insurance company. At the end of the guarantee period, you could transfer the funds to another Roth IRA, if you should choose to do so.

    - Kyle

  25. Chris P.
    2022-09-13 18:06:17

    Hi

    I have an Annuity for 7 yrs variable which ended January 2022 however since I am 62 - I did not want to extend this contract but conserve what I have - moving to a fix for another 4 years is probably an option but the rates are low any suggestion?

  26. Kyle
    2022-09-16 15:37:49

    Hi Chris,

    If you're looking for a 4-year MYGA, we currently have a few of them over 4.00% at this time. For example, Oxford Life is currently offering 4.30% for 4 years. These are the highest rates we've seen in the last 10-12 years.

    Please let us know if there's anything else we can do to help.

    - Kyle