Best MYGA Rates in 2026: What Retirees Should Know Before Locking In

Multi-Year Guaranteed Annuities (MYGAs) have become one of the most popular safe-money vehicles for retirees and pre-retirees in 2026. With top-tier carriers offering rates between 5.30% and 6.10% depending on the term length, MYGAs are significantly outpacing national average CD rates — and doing so with the added benefit of tax-deferred growth.

A MYGA works similarly to a bank CD: you deposit a lump sum, the insurance company guarantees a fixed interest rate for a set period (typically 2–10 years), and your principal is protected. The key difference is that interest earned inside a MYGA is not taxed until you withdraw it, which can result in meaningfully higher effective returns over time, especially for investors in higher tax brackets.

Not all MYGA rates are created equal. Several factors influence the rate a carrier can offer:

Carrier financial strength. Insurance companies with higher AM Best ratings (A or better) tend to offer slightly lower rates because they represent lower risk. However, many A-rated carriers are currently competitive with rates above 5.50% on 5-year terms.

Term length. Longer commitment periods generally command higher rates. A 7-year MYGA may offer 6.10% while a 2-year term offers 5.30%. The tradeoff is liquidity — your money is less accessible during the surrender period.

Premium amount. Some carriers offer rate bonuses for larger deposits, typically above $100,000 or $250,000. Always ask whether the quoted rate applies to your specific premium amount.

State of issue. Annuity products are regulated at the state level, and not all carriers are licensed in every state. The rates available to you depend partly on which carriers operate in your state.

The most common comparison for MYGAs is the bank CD. Both offer fixed rates and principal protection, but there are important structural differences:

For retirees who do not need immediate access to their funds and are in a 22–32% tax bracket, the tax-deferral advantage of a MYGA can add 0.50%–1.00% in effective annual return compared to a taxable CD.

Before committing to a MYGA, consider these evaluation criteria:

1. Check the carrier's AM Best rating. Look for A- or better. This rating reflects the company's ability to meet its financial obligations. Remember, MYGA guarantees are only as strong as the issuing carrier.

2. Understand the surrender schedule. Most MYGAs have declining surrender charges that start at 6–10% in year one and decrease to 0% by the end of the term. Many also offer a 10% annual free withdrawal provision.

3. Ask about renewal rates. When your MYGA term ends, the carrier may offer a renewal rate that is lower than your original guaranteed rate. Know your options at maturity — you can always transfer to a new MYGA at a different carrier via a 1035 exchange without triggering a taxable event.

4. Consider your liquidity needs. If you may need access to more than 10% of your funds annually, a MYGA may not be the right fit for that portion of your savings. Many advisors recommend using a MYGA for money you can commit for the full term.

5. Compare across multiple carriers. Rates can vary by 0.25%–0.75% between carriers for the same term length. A licensed professional can run a multi-carrier comparison specific to your state and premium amount.

MYGAs tend to be most appropriate for:

- Pre-retirees (ages 55–65) who want to lock in a guaranteed rate during their final working years while deferring taxes until retirement when they may be in a lower bracket. - Retirees with maturing CDs who are disappointed by current bank rates and want a higher-yielding alternative with similar safety characteristics. - Conservative investors who prioritize principal protection and predictable returns over market-linked growth potential. - IRA and 401(k) rollover candidates who want to move retirement funds into a guaranteed vehicle without market exposure.

MYGAs may be less appropriate for individuals who need full liquidity within the next 2–3 years, or for those seeking growth potential that exceeds fixed rates.