The highest paying Multi-Year Guaranteed Annuity (MYGA) rate, based on recent market offerings, is 5.45%. This rate is currently offered by two different products from distinct companies.
Multi-Year Guaranteed Annuities (MYGAs) are a type of fixed annuity that provides a guaranteed interest rate for a specific period, typically ranging from 3 to 10 years. They offer a predictable growth for your principal, making them a popular choice for those seeking safety and guaranteed returns on a portion of their retirement savings.
Top MYGA Annuity Rates
Below is a summary of some of the top MYGA annuity rates available, highlighting the products and companies offering competitive yields.
| Product | Company | Rate |
|---|---|---|
| Safeguard Plus 10 | Farmers Life Insurance Company | 5.45% |
| Excelera MYGA 7 | Revol One Insurance Company | 5.45% |
| Multi-Select 8 | Oxford Life Insurance Company | 5.20% |
| Heritage Premier Plus 9 | Capitol Life Insurance Company | 5.16% |
Understanding MYGA Annuities
MYGAs are appealing to individuals looking for a low-risk savings option that provides a guaranteed return, similar to a Certificate of Deposit (CD), but issued by an insurance company. Key features include:
- Guaranteed Interest Rate: The interest rate is fixed for the chosen term (e.g., 5, 7, or 10 years).
- Tax-Deferred Growth: Earnings within the annuity grow tax-deferred until withdrawal.
- Principal Protection: Your initial investment is protected from market fluctuations.
- Death Benefit: In most cases, if you pass away during the annuity term, the accumulated value is paid to your beneficiaries.
Factors Influencing MYGA Rates
Annuity rates are dynamic and can change frequently based on several economic factors:
- Interest Rate Environment: Generally, when broader interest rates (like the Federal Funds Rate) rise, MYGA rates tend to follow suit.
- Competition Among Insurers: Insurance companies compete for consumer dollars, which can drive rates up.
- Term Length: Longer MYGA terms often offer slightly higher rates to compensate for locking up funds for a longer period.
- Company Financial Strength: Reputable insurance companies with strong financial ratings are generally preferred, and their rates may reflect their stability.
When considering a MYGA, it's essential to compare rates from multiple providers and understand the terms, including surrender charges, which apply if you withdraw funds before the guaranteed period ends.
