Fixed, CD-Type Annuities

This type of annuity is also known as a Multi-Year Guaranteed Annuity (MYGA). CD-type Annuities have become increasingly popular as bank CD rates have plummeted to all time lows.

MYGA’s are very similar to bank CDs in that they are both used as vehicles to increase savings, Both are considered low to no-risk and will likewise guarantee a specific interest rate for a specific contract’s term or time period. To check the current interest rate, click the "Interest Rate" link at the top of this page.

MYGA’s compare very favorably to bank CDs and have some distinct advantages:

  • Tax Savings - Taxes are deferred on MYGAs. You do not pay taxes until the interest is withdrawn. This allows interest to be accumulated on the entire principle over the contract term. Earnings on CDs are taxable in the year the interest is earned, even if you don’t withdraw your money.
  • Higher Interest Rates – typically MYGAs offer higher interest rates that their CD counterparts.
  • Liquidity – If you need access to CD funds prior to maturity date, you will be assessed an interest penalty. MYGAs allow for certain penalty-free interest withdrawals usually up to 10% after the first year.
  • Death Settlement – If you should pass away prematurely, an MYGA will pay your beneficiary directly, similar to a life contract.