CD-Type Annuities

CD Type Annuities—MYGAs

Multi-Year Guaranty Annuities, or "MYGA"s

Annuities that work like CDs, but with higher returns that are tax-deferred.

The most important difference between MYGAs and CDs is that MYGAs return anywhere from 100% to 500% more growth than CDs.

Just like CDs, MYGAs have both a fixed policy term, and a fixed rate or return—and neither can be changed by the carrier, or policy holder, during the life of the policy.  Unlike CDs, the interest growth in MYGAs is not taxable in the year it is earned—so no 1099 on the growth. Just like other annuities, the taxation occurs years later when the client decides to spend the money. This means tax-free compound interest growth.

MYGAs typically range from one to ten years in duration, and the rates tend to be lower than the returns delivered by other types of annuities, but are guaranteed to deliver the expected return regardless of any external factors—such as the performance of an index.

For current MYGA rates, give us a call or log in to our Annuity Search Tool here.