Published April 11, 2026 | By AnnuityJournal Editorial Team
Top fixed annuity rates are holding steady through April 2026, with the best 5-year multi-year guaranteed annuity (MYGA) still paying 6.30% APY from A-rated carriers, even as the Federal Reserve continues to signal potential rate cuts later this year. For retirees deciding what to do with tax refunds, required minimum distributions, or maturing CD money, the persistence of these rates through a usually-volatile tax season is the most important story in the annuity market this month.
The rate stability is a marked contrast to bank CDs, where top national rates have slipped roughly 0.15% over the past 30 days, and to the broader Treasury market, where the 10-year yield has traded in a narrow 4.15% to 4.35% range since mid-March. Annuity carriers have so far declined to follow banks in lowering crediting rates, and the reasons tell us a lot about where the market is headed.
Why Annuity Rates Are Lagging Fed Signals
The Fed’s March 2026 dot plot implied one to two 25-basis-point rate cuts by year-end, and April commentary from several Federal Reserve Board members has reinforced that view. Bond markets have priced in a roughly 55% chance of a June cut as of this week. Yet the top MYGA rates we track have not moved meaningfully since mid-February.
Three factors explain the gap.
First, insurance carriers match liability duration to asset duration. A 5-year MYGA is funded by 5- to 7-year corporate bonds and commercial loans the carrier buys when you pay your premium. Those asset yields move more slowly than short-term Fed rates. Even if the Fed cuts its overnight rate, a 5-year corporate bond yielding 5.50% today will keep paying 5.50% for the full term. Carriers only need to lower MYGA crediting when new bond purchases price at lower yields, which lags the Fed by six to twelve months.
Second, carrier competition is unusually tight in April 2026. LIMRA’s preliminary Q1 2026 data shows fixed annuity sales continued the record pace set in 2025, with MYGA premium up roughly 8% year over year. Carriers fighting for market share in a hot product category are reluctant to be the first to lower rates. Several mid-tier carriers have even nudged rates higher in the past two weeks, which is unusual heading into a Fed cut cycle.
Third, tax season brings a surge of new premium. April is historically a strong month for annuity sales because retirees are making decisions about tax refunds, 401(k) rollovers, and maturing CDs all at once. Carriers that cut rates in April would lose deposits to competitors during the biggest buying window of the year. The commercial incentive to hold rates steady through April 30 is real.
Top April 2026 MYGA Rates by Term
| Term | Top MYGA Rate | Top National CD Rate | MYGA Advantage |
|---|---|---|---|
| 1 Year | 5.15% | 4.80% | +0.35% |
| 3 Year | 5.75% | 4.50% | +1.25% |
| 5 Year | 6.30% | 4.65% | +1.65% |
| 7 Year | 6.15% | 4.25% | +1.90% |
| 10 Year | 5.85% | 4.00% | +1.85% |
The 5-year term remains the sweet spot for most retirees, offering the highest absolute yield and a reasonable surrender period. For tax-sensitive buyers in the 22% to 32% federal bracket, the after-tax gap between MYGA and CD is even larger than the headline rate difference, because annuity interest grows tax-deferred. See our full annuity vs. CD breakdown for the bracket-by-bracket math.
What Tax-Season Cash Should Do
Three money buckets tend to hit household balance sheets in April: tax refunds, maturing 1-year CDs, and first-quarter required minimum distributions (RMDs) from traditional IRAs. The right move for each depends on the money’s tax status and your time horizon.
Tax refund money (after-tax personal savings). If your refund is sizable (over $10,000) and you already have an adequate emergency fund, funding a non-qualified MYGA with the refund captures the 6.30% rate and adds years of tax-deferred compounding before you would otherwise pay income tax on CD interest. Smaller refunds are usually better directed to a high-yield savings account for liquidity.
Maturing CD rollovers. If your bank CD is maturing in April or May, you face a choice between renewing at roughly 4.65% or rolling to a MYGA at 6.30%. Over 5 years on a $100,000 balance, the MYGA advantage compounds to about $8,250 before taxes, plus another $2,000 to $3,000 in tax-deferral benefit at the 24% federal bracket. See our best MYGA rates page for current offers from A-rated carriers.
RMD funds you do not need for spending. If you took your 2026 RMD in the first quarter and the cash is sitting in a checking account waiting for a purpose, redirecting it into a non-qualified MYGA is a legitimate option. The RMD itself has already been taxed by virtue of being withdrawn from the IRA. Moving the after-tax dollars into a 5-year MYGA locks in a solid guaranteed return without the volatility of a taxable brokerage account.
Should You Wait for Better Rates?
This is the most common question we hear in April: if the Fed cuts rates in June, will MYGA rates follow down, meaning you should wait? Or will carriers cut before then, meaning you should buy now?
The math argues for buying now. Even in the most aggressive rate-cut scenarios, MYGA crediting rates typically lag Treasury yields by three to six months. A 25-basis-point Fed cut in June would probably result in MYGA rates dropping 0.10% to 0.20% by August or September. The cost of waiting from April to August at 6.30% versus August purchase at 6.15% on a $200,000 deposit is:
- Waiting scenario: 4 months at 4.50% in a high-yield savings account, then 5 years at 6.15% = approximately $263,000 ending value
- Buying now: 5 years plus 4 months at 6.30% = approximately $269,500 ending value
- Cost of waiting: approximately $6,500 on a $200,000 deposit
Unless you expect rates to rise meaningfully in the next few months (and nothing in current market data supports that), locking in today’s rate is usually the better move for retirees who already plan to buy within this window.
The Bottom Line
April 2026 looks like one of the better windows of the past 12 months to lock in a 5-year to 7-year MYGA. Top rates are holding at 6.30% despite a slowing macro backdrop, carrier competition is tight, and the tax-season buying pressure is keeping pricing honest. For retirees weighing whether to deploy tax-season cash into guaranteed income, the usual guidance applies: buy from A-rated carriers, split large deposits across two insurers to stay within state guaranty association limits, and confirm the surrender schedule matches your liquidity needs before signing.
Current rates can change quickly if bond markets reprice around the Fed’s May meeting. The rates shown above reflect the top available offers as of April 11, 2026, and are updated daily on our best MYGA rates page.
