Best MYGA Rates: How to Find and Compare Them
Aaron Sims
Licensed Insurance Professional · Updated March 2026
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.
Why MYGA Rates Vary So Much
Multi-year guaranteed annuity rates are set individually by each insurance carrier and can differ by 50 to 100 basis points or more across carriers offering the same term. These differences compound significantly over a 5- to 7-year term. Understanding why rates vary — and how to shop effectively — is the starting point for finding a competitive rate.
Carriers set MYGA rates based on:
- The yield available on the bonds and fixed-income assets they invest in
- Their own profitability requirements and current appetite for new premium
- Their operating costs and commission structures
- Competitive positioning relative to other carriers
A carrier that is aggressively growing its annuity book may offer rates above its long-term equilibrium to attract premium. A carrier that is not seeking growth may offer lower rates. Neither reflects quality — it reflects pricing strategy at a point in time.
Where to Find Current MYGA Rates
The most reliable way to find current MYGA rates is through a licensed independent advisor who has access to multiple carriers. Independent agents are not tied to a single carrier, so they can shop the market on your behalf and present options ranked by rate, carrier financial strength, and contract terms.
Alternatively, several websites aggregate MYGA rates publicly. These can be useful for ballpark research, but they are often not fully current, may not show all available carriers, and do not account for contract-specific terms like surrender charge schedules, free withdrawal provisions, or MVA clauses.
How to Compare MYGA Rates Properly
A raw rate comparison is incomplete. The following checklist gives a more thorough basis for comparing two or more MYGAs:
1. Carrier financial strength. The rate guarantee is only as good as the carrier's ability to honor it. Compare AM Best ratings alongside rates. A carrier rated A or better with a competitive rate is generally preferable to a higher rate from a lower-rated carrier.
2. Term matching. Match the MYGA term to when you expect to need the funds. A 7-year MYGA often offers a higher rate than a 5-year, but only if you can commit for the full period.
3. Surrender charge schedule. Most MYGAs align the surrender period with the rate guarantee term, but confirm. Surrendering early typically costs several percent of the accumulation value.
4. Free withdrawal provision. Does the contract allow you to withdraw up to 10% per year without penalty? Most do, but not all.
5. Market value adjustment. Some MYGAs include an MVA that can increase or decrease the surrender value depending on interest rate changes. A MYGA without an MVA provides more predictable access if you surrender early.
6. Renewal terms. What happens at the end of the term? Confirm there is a window to move funds without penalty if the renewal rate is not competitive.
Term Length and Rate Relationship
Longer terms generally — but not always — offer higher rates. The relationship is driven by the yield curve: when longer-term bonds yield more than shorter-term bonds, carriers can pass through some of that extra yield to MYGA buyers.
In an inverted yield curve environment (when short rates exceed long rates), shorter-term MYGAs may actually offer more competitive rates than longer terms. Checking rates across multiple terms before committing is worthwhile.
Common MYGA terms and their typical relative positioning:
- 3-year: Often competitive with short-term CDs; lower than 5-7 year MYGAs in a normal yield curve
- 5-year: The most commonly purchased term; balances rate, commitment, and flexibility
- 7-year: Higher rate in normal environments; appropriate for funds not needed until after the term
- 10-year: Highest rates when available; appropriate only if the full term is realistic
Using a MYGA Ladder
Rather than committing all funds to a single MYGA term, some savers spread across multiple terms to create a ladder. For example: one-third of funds in a 3-year MYGA, one-third in a 5-year, and one-third in a 7-year. As each term matures, you can reassess rates and reinvest accordingly. This provides periodic access to the funds while still capturing term-premium rates on longer maturities.
Rates Inside vs. Outside an IRA
MYGAs can be held inside traditional IRAs, Roth IRAs, SEP IRAs, and other qualified accounts. The tax deferral benefit of the MYGA itself is redundant when held inside an already tax-deferred account. The reasons to hold a MYGA inside an IRA include the competitive rate, principal protection, and simplicity — but the tax deferral argument alone does not justify it.
For non-qualified (after-tax) funds, the tax deferral of a MYGA is a genuine advantage. Interest inside a MYGA in a taxable account compounds without annual taxation, while CD interest in the same account is taxed each year.
A Word on Rate Aggregators
Third-party websites that publish ranked MYGA rates can be a useful starting point for research. However, verify any rate directly with the carrier or a licensed advisor before making a decision. Rates change frequently, some aggregators are not updated in real time, and they typically do not capture all carriers in the market.
Frequently Asked Questions
Q: How often do MYGA rates change? A: Carriers adjust MYGA rates frequently — sometimes weekly — based on interest rate movements and their own business needs. A rate you see today may not be available tomorrow. Working with a licensed advisor who monitors current offerings is the most reliable approach.
Q: Is the highest MYGA rate always the best deal? A: Not if it comes from a lower-rated carrier. Selecting a competitive rate from an A-rated or better carrier is generally preferable to maximizing rate alone.
Q: Can I get a MYGA rate higher than a Treasury bond? A: Yes, in many environments. Insurance carriers invest in a mix of corporate bonds and other instruments that typically yield more than Treasuries. That extra yield allows them to offer rates above Treasury yields while still maintaining profitability.
Q: What is the difference between a MYGA and a fixed indexed annuity for someone who just wants a safe rate? A: A MYGA is the simpler choice if you want a guaranteed, predictable rate. An FIA offers the potential for more if the linked index performs well, but with less certainty about what you will earn. MYGAs are the right choice when predictability is the priority.