Last updated: April 28, 2026 | By Elizabeth Prescott
- Top 5-year MYGA rates from A-rated carriers in late April 2026 range from 5.00% to 5.60%, with select A- and B++ specialty issuers reaching 6.30%.
- The Federal Reserve has held its policy rate steady through Q1 2026, keeping the 10-year Treasury in a 4.2% to 4.5% range.
- Most analysts expect a gradual rate decline through 2026-2027 as inflation continues to soften, which would compress new MYGA issuance rates.
- For buyers waiting on “better rates next quarter,” the historical pattern says the window narrows when the Fed pivots – not when the cuts actually arrive.
Multi-year guaranteed annuity (MYGA) rates have held remarkably steady through the first four months of 2026 even as the Federal Reserve held its policy rate flat. As of late April 2026, the best 5-year MYGA rates from A-rated carriers sit between 5.00% and 5.60% APY, with a few A- and B++ specialty issuers – operating with higher costs of funds – publishing rates as high as 6.30%.
The narrow weekly movement masks a structural question retirees keep asking: are MYGA rates closer to the top or the bottom of this cycle?
Where Rates Stand in Late April 2026
| Term | Best A-Rated Rate | Best Overall (A- or B++) | Comparable 5-Yr CD |
|---|---|---|---|
| 3-Year MYGA | 5.20% | 5.85% | 4.30% |
| 5-Year MYGA | 5.60% | 6.30% | 4.65% |
| 7-Year MYGA | 5.55% | 6.10% | n/a |
| 10-Year MYGA | 5.40% | 6.00% | n/a |
Live rates: best MYGA rates. Definitions of MYGA mechanics: what is a MYGA.
What the Fed Did and Didn’t Do
The Federal Reserve has been on hold since late 2025. The federal funds rate remained in its current target range through the March 2026 FOMC meeting, with Chair Powell repeating the same “data dependent” language used for most of the past year. The CME FedWatch tool currently prices in 1 to 2 cuts of 25 basis points each before year-end 2026.
What matters for annuity buyers is not the Fed funds rate directly. MYGA rates track the 10-year Treasury and corporate bond spreads more closely. The 10-year Treasury has settled in a 4.2% to 4.5% band since January, which has kept new MYGA issuance largely in line with where it was at the end of 2025.
Why MYGA Rates Could Drop Faster Than the Fed
Two technical factors create the risk that MYGA rates fall before the Fed cuts:
- Insurer reinvestment yields. Carriers fund MYGA rates from new corporate bond purchases and structured credit. If credit spreads tighten ahead of Fed action – a common pattern – new MYGA rates can drop even with no change in the Fed funds rate.
- Capacity discipline. Major carriers including Athene, Corebridge, and Global Atlantic adjust posted rates based on internal capacity targets. If sales accelerate ahead of expected Fed cuts (a “lock in before they fall” rush), carriers often pull rates 10 to 25 basis points to slow new business.
The 2024 Pattern Worth Watching
In late 2024, top 5-year MYGA rates touched 6.40% in October and dropped to 5.50% by early February 2025 – a 90 basis point compression in roughly 100 days. The Fed did not cut rates in that window. The compression came from spread tightening and carrier capacity discipline, not from policy moves.
If 2026 follows the same script, the window for current rates may close before the first 2026 Fed cut actually arrives.
What This Means for Buyers in Q2 2026
Three takeaways for retirees and pre-retirees holding cash or maturing CDs:
- The yield gap over CDs is real and meaningful. A 5-year MYGA at 5.60% beats a 5-year CD at 4.65% by 95 basis points – and MYGA interest is tax-deferred. See the full annuity vs CD comparison.
- Term selection matters more than chasing the absolute peak. If you don’t need the funds for 5+ years, locking in 5.40% to 5.60% today on a 5- or 7-year contract is generally better than waiting in cash for a hypothetical 5.80% next quarter.
- Rating discipline still matters. Specialty B++ carriers offering 6.30% are not a free lunch. Verify the AM Best rating, check your state guaranty association coverage, and stay within those limits.
For deeper comparisons by carrier and term, see best fixed annuity companies of 2026.
