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Below you will find the highest current fixed annuity interest rates and product guidelines for multi-year guaranteed annuities (MYGA). MYGAs are a category of fixed annuities that offer a guaranteed fixed rate of return for a set period of time, typically two to 10 years. MYGAs do not have annual fees, however they are subject to a surrender charges, which is a penalty imposed on an annuity holder if they withdraw funds (above the free-withdrawl limits) from the annuity before the specified time period is over. The best fixed rate for a 10 year surrender period is 4.80%, the best 7 rate is 5.15%, 5.10% for five years and 4.65% for a three year surrender period.
Fixed annuity rates can vary from state to state and change daily. Requesting Today's MYGA Report below is the best way to ensure you are receiving the most accurate, up-to-date rates for your state.
Annuity rates vary by state and can change daily. Receive the most up-to-date rates with Today's MYGA Report.
| Company / Product | Length | Minimum Premium | Rate | Rating |
|---|
| Oceanview | ||||
| Harbourview 10 High-Band | 10 yrs. | $80,000 | 4.80% | A- |
| Oxford Life | ||||
| Multi-Select 9 | 9 yrs. | $20,000 | 4.70% | A |
| Oxford Life | ||||
| Multi-Select 8 | 8 yrs. | $20,000 | 4.85% | A |
| Nationwide | ||||
| Secure Growth 7 High Band | 7 yrs. | $100,000 | 5.15% | A+ |
| Oceanview | ||||
| Harbourview 6 High-Band | 6 yrs. | $80,000 | 4.80% | A- |
| Ibexis | ||||
| MYGA Plus 5 | 5 yrs. | $10,000 | 5.10%* | A- |
| Integrity Life | ||||
| MultiVantage 4 | 4 yrs. | $20,000 | 4.55% | A+ |
| Aspida | ||||
| Synergy Choice High-Band | 3 yrs. | $100,000 | 4.65% | A- |
| Oceanview | ||||
| Harbourview 2 High-Band | 2 yrs. | $80,000 | 3.80% | A- |
*Pays simple interest as stated as an annual rate and this interest is credited to the contract value daily.
A Multi-Year Guaranteed Annuity (MYGA) is a hybrid of a fixed annuity and CD. The MYGA guarantees a fixed rate for the entire duration of the contracts terms, typically from 1 to 10 years. Current rates range from 3.55%-4.75%, depending on the length of the contract and insurance company.
The key distinction between a MYGA and deferred fixed annuities is the terms of the guaranteed rate. A MYGA annuity's rate is guaranteed for the full contract term. Deferred Fixed annuities offer a similar (often slightly higher) guaranteed rate, however that rate could change, up or down, sometime after the first year.
Example:
A 5 year, 4.75% fixed annuity might guarantee this rate for only the first year. However, 5 year, 4.65% MYGA annuity guarantees its rate for the full 5 years.
The MYGA annuity offers many of the same features as a typical CD. Difference number one is that CDs are issued by banks/brokers while MYGA annuities are issued by insurance companies. This means that CDs are insured by the FDIC up to $100,000 for non-retirement accounts. Annuities are not FDIC insured, but are safeguarded by individual state reserves. Annuity coverage varies state-to-state, ranging from $100,000 to $300,000.
A second difference is that MYGA annuities can be rolled over without triggering a tax-event. Using what's known as a 1035 exchange, the MYGA annuity owner can transfer money from one annuity to another without showing an income. This is not possible with CDs, which generate income statements every year.
A third difference is that you can make partial withdrawals from a MYGA annuity. Unlike a CD, a typical MYGA annuity will allow you to withdrawal up to 10% of the initial investment annually. This feature is very desirable because it covers unexpected withdrawal needs. In contrast, liquidating even part of a CD requires you to cash out the whole thing and pay a sizable surrender charge.
Other features of MYGA annuities include the ability to withdraw interest as monthly income and the 10% IRS tax penalty. The first is a positive, the second is a negative. Remember that all annuities are subject to a 10% tax penalty when liquidated prior to the age of 59.5.
The most important consideration is age. Are you retired or close to retirement? Are you near or over the age of 59.5? If so, annuities will out-perform CDs because of their tax-deferral benefits and more competitive rates. If you're a younger investor, go with CDs to avoid the 10% tax penalty.
As for choosing between fixed and MYGA annuities, there's really little difference. With near identical benefits, go with whichever annuity happens to offer the higher rate. Just keep in mind that fixed annuities don't necessarily guarantee their rate for the full term.
Below you will find the highest current interest rates and product guidelines for 3 year multi-year guaranteed annuities (MYGA). See All 3 Year Annuity Rates
| Company / Product | Length | Minimum Premium | Rate | Rating |
|---|
| Aspida / Synergy Choice High-Band | 3 yrs. | $100,000 | 4.65% | A- |
| Ibexis / MYGA Plus 3 | 3 yrs. | $10,000 | 4.65%* | A- |
| MassMutual / Ascend SecureGain 3 | 3 yrs. | $100,000 | 4.20% | A+ |
Below you will find the highest current interest rates and product guidelines for 4 year multi-year guaranteed annuities (MYGA). See All 4 Year Annuity Rates
| Company / Product | Length | Minimum Premium | Rate | Rating |
|---|
| Integrity Life / MultiVantage 4 | 4 yrs. | $20,000 | 4.55% | A+ |
| Oxford Life / Multi-Select 4 | 4 yrs. | $20,000 | 4.50% | A |
| Oceanview / Harbourview 4 High-Band | 4 yrs. | $80,000 | 4.25% | A- |
Below you will find the highest current interest rates and product guidelines for 5 year multi-year guaranteed annuities (MYGA). See All 5 Year Annuity Rates
| Company / Product | Length | Minimum Premium | Rate | Rating |
|---|
| Ibexis / MYGA Plus 5 | 5 yrs. | $10,000 | 5.10%* | A- |
| SBLI / ECAccumulate 5 | 5 yrs. | $25,000 | 5.00% | A |
| Nationwide / Secure Growth 5 High Band | 5 yrs. | $100,000 | 4.95% | A+ |
A multi-year guaranteed annuity (MYGA) is a single-premium deferred annuity with a fixed interest rate. After choosing the desired contract length, the owner of the policy makes one lump-sum investment. The insurance company guarantees a fixed rate of return for the entire duration of the contract, provided the owner keeps the funds (with the exception of free-withdrawals) in the account. After the guaranteed period expires, the owner may lump-sum out of the account penalty free. A MYGA is comparable to a bank CD, however you’ll also enjoy tax advantages that bank accounts and CDs don’t offer.
Most deferred annuity contracts allow a specified amount to be withdrawn penalty-free. The allowable withdrawal amount will differ from company-to-company, so be sure to read the product specifics carefully. MYGA annuities typically allow either penalty-free withdrawals of your earned interest, or penalty-free withdrawals of 10% of your contract value each year.
Most multi-year guaranteed annuity contracts have a surrender charge that declines over time. 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.
A major difference between a CD and an annuity is in the tax status of these products. Interest earned on CDs is taxable at the end of each year. An annuity has a tax deferred status, which allows you to postpone paying income tax on gains until after you make a withdrawal. Usually, MYGAs offer higher interest rates than CDs, and compound interest increases the difference.
Another difference is CDs are insured by the FDIC, while annuities are not. However, MYGAs are insured by the individual states. It is usually in the range of $100,000 to $500,000. Make sure to research your state guaranty association before you invest.
You have several choices once the annuity surrender period expires. You can either you take your money in a lump sum, reinvest it in another annuity, or keep the annuity in place at the declared renewal rate. 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.
