Best MYGA Rates by Term
| Term | Carrier | Product | Rate | AM Best |
|---|---|---|---|---|
| 2-Year | Axonic Insurance | Waypoint 2 MYGA | 5.00% | |
| 3-Year | Knighthead Life | Staysail 3 (Simple Interest) SI | 5.60% | |
| 4-Year | Oxford Life Insurance Company | Multi-Select 4 | 5.10% | |
| 5-Year | Knighthead Life | Staysail 5 (Simple Interest) SI | 6.30% | |
| 6-Year | Oxford Life Insurance Company | Multi-Select 6 | 5.55% | |
| 7-Year | Knighthead Life | Staysail 7 (Simple Interest) SI | 6.50% | |
| 8-Year | Oxford Life Insurance Company | Multi-Select 8 | 5.20% | |
| 9-Year | Liberty Bankers Life | Heritage Elite 9 | 5.50% | |
| 10-Year | Axonic Insurance | Waypoint 10 MYGA | 5.50% |
Rates shown are the highest available for each term from A-rated carriers (AM Best). Products marked SI use simple interest. Always verify current rates with a licensed annuity broker before purchasing.
- Top MYGA rates in early 2026 range from 5.40% (3-year) to 5.90% (10-year) from A-rated carriers.
- MYGA rates are set by insurance companies based on bond yields — not the Fed funds rate. They can move independently of Fed decisions.
- The highest rate isn’t always the best deal. Carrier financial strength and renewal rate behavior matter as much as the headline number.
- A 1035 exchange lets you transfer a maturing annuity to a new MYGA tax-free — critical for capturing better rates at renewal without a tax hit.
- Rates change daily. Lock in when you see a rate you like — waiting for slightly higher rates often costs more than it gains.
MYGA rates are at historically competitive levels in 2026 — driven by the sustained higher interest rate environment that has benefited fixed-income investors across the board. For conservative savers, multi-year guaranteed annuities now offer compelling yields with full principal protection and tax-deferred compounding.
This guide covers current MYGA rates by term, how rates are set, what separates a great MYGA from a mediocre one, and how to get the best rate available without taking unnecessary risk.
Current Best MYGA Rates by Term (Early 2026)
| Term | Top Rate (A-rated carriers) | Average Rate | Minimum to Consider |
|---|---|---|---|
| 3-Year MYGA | 5.40% | 4.90%–5.20% | 4.50% |
| 5-Year MYGA | 5.75% | 5.20%–5.50% | 4.90% |
| 7-Year MYGA | 5.85% | 5.30%–5.60% | 5.00% |
| 10-Year MYGA | 5.90% | 5.40%–5.70% | 5.10% |
Rates as of early 2026. Rates change frequently — verify current rates before purchasing. Rates vary by state; some states restrict certain products.
How MYGA Rates Are Set
Insurance companies invest your premium primarily in investment-grade corporate bonds and U.S. Treasuries. The MYGA rate they offer you reflects the yield they earn on those bonds, minus their operating margin.
Key drivers of MYGA rates:
- 10-year and 5-year Treasury yields — the primary benchmark. When Treasury yields rise, MYGA rates follow.
- Corporate bond spreads — insurers earning more yield from corporate bonds can pass more to policyholders.
- Carrier investment philosophy — more aggressive bond portfolios can offer higher rates, but with added credit risk.
- Competitive pressure — carriers compete for premium dollars. When one carrier raises rates, others often follow.
The Federal Reserve’s policy rate has indirect influence, but MYGA rates are more directly tied to Treasury yields and the corporate bond market than to the overnight Fed funds rate. A Fed rate cut doesn’t immediately lower MYGA rates if Treasury yields remain elevated.
What Separates the Best MYGA from the Rest
Rate alone is an incomplete comparison. Here’s the full evaluation framework:
Financial Strength (Non-Negotiable)
Require A- or better from AM Best. You’re locking in for 3–10 years. The insurer’s financial health over that period is not a hypothetical concern — it’s the foundation of the guarantee you’re buying. A carrier offering 0.25% more than a comparable A-rated competitor is not worth the added credit risk.
Rate Certainty
Unlike a fixed annuity (which resets annually), a MYGA locks your rate for the entire term — that’s the defining feature. Verify in the contract that the rate is guaranteed for the full term with no resets. Any language allowing the carrier to adjust the rate mid-term is disqualifying.
Free Withdrawal Provisions
Most MYGAs allow penalty-free withdrawals of up to 10% of the account value per year. Some offer:
- First-year interest-only withdrawals
- Nursing home/disability waivers (surrender charges waived if you enter a care facility)
- Terminal illness waivers
Compare these provisions carefully. For a 7- or 10-year commitment, liquidity options matter.
Surrender Charge Schedule
Typical MYGA surrender charges start at 7–9% in year 1 and decline to zero by the end of the term. Know the schedule before purchasing — and don’t commit money you might need before the surrender period ends.
Maturity Window
Most MYGAs give you a 30-day window at maturity to withdraw, renew, or execute a 1035 exchange. Some offer longer windows (45–60 days). If you miss the window, the contract typically auto-renews at whatever rate the carrier declares — which may be lower than alternatives in the market. Know your window and set a calendar reminder.
MYGA Laddering Strategy
One of the most effective strategies for MYGA investors is rate laddering — splitting your principal across multiple terms so a portion matures every few years.
Example: $300,000 to invest safely
- $100,000 → 3-year MYGA at 5.40%
- $100,000 → 5-year MYGA at 5.75%
- $100,000 → 7-year MYGA at 5.85%
At the 3-year mark, the first $100,000 matures. If rates have risen, you roll into a higher rate via 1035 exchange. If rates have fallen, your 5- and 7-year MYGAs are still earning the locked-in higher rates. You get liquidity events every 2 years without sacrificing the full portfolio to the shortest-term (and lowest) rate.
The 1035 Exchange: Your Most Powerful Tool at Maturity
When your MYGA matures, you’re not forced to withdraw and pay taxes. A 1035 exchange allows you to transfer the entire balance — including all accumulated interest — to a new annuity at a different carrier, completely tax-free.
This means you can:
- Compare rates across all carriers at maturity
- Move to whoever offers the best current rate
- Keep your money compounding tax-deferred indefinitely
- Never pay taxes until you actually want the money
The 1035 exchange is what makes MYGAs superior to CDs for long-term tax-deferred savings. CDs force you to decide: reinvest (potentially with a new tax bill on accumulated interest) or withdraw. A MYGA lets you stay in the tax-deferred environment across multiple rate cycles. Full MYGA guide →
Who Should Buy a MYGA Now?
The current rate environment makes MYGAs particularly compelling for:
- Retirees or pre-retirees (age 55+) with safe-money allocations seeking better yields than savings accounts or CDs
- Investors in the 22%+ tax bracket who want to defer taxes on interest income
- Anyone rolling over a matured CD or annuity looking to capture today’s rates for the next 3–10 years
- High-income earners who’ve maxed other tax-advantaged accounts and need additional tax deferral
Frequently Asked Questions: Best MYGA Rates
What are the best MYGA rates right now?
In early 2026, top MYGA rates from A-rated carriers range from 5.40% (3-year) to 5.90% (10-year). Rates vary by carrier and state. Always compare at least 5–10 carriers through an independent annuity broker before purchasing, as rates change frequently.
How long should I lock in a MYGA rate?
Match the term to your timeline. If you’re confident you won’t need the money for 7–10 years and want to lock in today’s rates, a longer term makes sense. If you believe rates may rise, a 3-year term lets you reinvest at a potentially higher rate sooner. Many investors ladder across multiple terms to balance these concerns.
Will MYGA rates go up or down in 2026?
MYGA rates are primarily driven by Treasury yields and corporate bond spreads — not the Fed funds rate directly. If the 10-year Treasury yield declines (as many forecasters expect), MYGA rates will likely follow. Locking in today’s rates for 5–10 years provides protection against a rate decline environment.
Is the highest MYGA rate always the best deal?
No. Carrier financial strength matters more than 0.10%–0.25% in additional yield. A carrier offering a significantly above-market rate may be compensating for weaker financial ratings or investing in riskier bond portfolios. Require A- or better from AM Best, then choose the best rate within that tier.
How do I buy a MYGA at the best rate?
Use an independent annuity broker who can compare rates across 20 or more carriers simultaneously. Captive agents representing a single carrier cannot show you the full market. Get quotes from multiple independent sources and verify each carrier’s AM Best rating independently at ambest.com before purchasing.
Can I move my MYGA to a better rate at maturity?
Yes — this is one of the MYGA’s most valuable features. A 1035 exchange allows you to transfer your entire balance, including accumulated interest, to a new annuity at maturity without triggering a taxable event. You can chase the best available rate at each renewal while staying tax-deferred indefinitely.
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