Current MYGA Rates This Week

Two MYGAs that look similar can credit different rates. The main factors are below. The rates shown above are examples for one term and one set of minimums — not every consumer will qualify for, or be able to buy, a given rate.

• Term. MYGAs are commonly offered in guarantee periods such as 3, 5, 7, or 10 years. Rates differ by term, and a longer term does not always carry a higher rate.
• State. Annuity products are filed and approved state by state, so availability and rates can differ by where you live. New York has its own rules, which is why New York rates are shown separately above.
• Insurer rating. Independent agencies such as A.M. Best rate insurers’ financial strength. Ratings are opinions, not guarantees, and a MYGA’s guarantee is only as good as the claims-paying ability of the company behind it. Compare the rating alongside the rate.
• Premium amount. Some contracts have minimum premiums (like the $75,000 and $100,000 minimums above) and some pay different rates at different premium bands.
• Contract features. Surrender charge schedules, market value adjustments (MVAs), and free-withdrawal provisions differ from contract to contract and can affect how a rate compares in practice.
• Timing. Insurers can change the rates they offer on new contracts at any time. Once a contract is issued, its guaranteed rate is fixed for the stated guarantee period.

How to read a MYGA rate

A MYGA’s declared rate is the interest rate the insurer guarantees for the full term. Interest is generally tax-deferred until withdrawn. Withdrawing more than a contract allows, or surrendering it early, can trigger surrender charges and, in some contracts, a market value adjustment that can raise or lower the amount you receive. Withdrawals of gains before age 59½ may also be subject to a 10% additional federal tax, in addition to ordinary income tax.

Want more detail? See How Fixed Annuities Work and MYGA vs. Bank CD.