MYGA Rates in 2026: Should You Lock In Before They Fall?

If you've been sitting on a chunk of savings — maybe an old 401(k) rollover, proceeds from selling a home, or money earning next to nothing in a bank account — you've probably heard that annuity rates are still pretty good right now. That's true. But "pretty good" may not last forever.

Here's a plain-English look at what's happening with Multi-Year Guaranteed Annuity (MYGA) rates in 2026, why so many retirees are moving money into them right now, and what to think about before you do the same.

What Is a MYGA, and Why Does the Rate Matter?

A MYGA is essentially the annuity world's version of a CD — you put in a lump sum, lock in a guaranteed interest rate for a set number of years (typically 3, 5, or 7), and the money grows tax-deferred. When the term ends, you can take the money out, roll it into another product, or convert it to a lifetime income stream.

Unlike a bank CD, MYGAs are backed by the insurance company's general account (not FDIC-insured), but they're regulated at the state level and backed by state guaranty associations. For most retirees in Texas and Oklahoma, that's a distinction worth understanding but not necessarily losing sleep over — as long as you're working with a carrier that has strong financial ratings.

The rate matters because it determines how much your money grows. At 2% (where many MYGA rates were sitting in 2020 and 2021), $200,000 becomes about $220,816 after five years. At 5%, that same $200,000 grows to around $255,256. That's a real difference — roughly $34,000 more — just from locking in at a better time.

Where Rates Stand Right Now

MYGA rates peaked near 6.25%–6.40% for five-year terms in late 2023, following the Federal Reserve's aggressive rate-hiking cycle. Since then, the Fed has begun cutting rates, and annuity rates have moderated — but they're still well above where they were in 2019, 2020, and 2021.

In mid-2026, competitive five-year MYGA rates from financially strong carriers are generally in the 4.75%–5.50% range, depending on the carrier and term length. That's historically strong — roughly double what you would have found a few years ago.

The concern many financial professionals are raising: if the Fed continues to cut rates over the next year or two, MYGA rates will likely follow. No one knows exactly when or by how much, but the direction of travel seems clear. Rates that seemed average in 2023 look attractive today. Rates that look attractive today may look great in hindsight by 2027.

Who Should Be Thinking About a MYGA Right Now

A MYGA isn't for everyone. But it tends to be a good fit if you:

• Have money sitting in a low-yield savings account or money market that you don't need for day-to-day expenses. Moving it into a MYGA for three to five years can meaningfully improve your return without adding market risk.
• Have an old 401(k) or IRA you've been meaning to do something with. A direct rollover into a MYGA inside an IRA keeps the tax-deferred status intact and locks in a guaranteed rate.
• Want to protect principal while still earning more than a CD. MYGAs typically offer slightly better rates than bank CDs of similar terms, with the added benefit of tax deferral on growth.
• Are in the 55–68 range and still a few years from turning on Social Security or a pension. A MYGA can serve as a "bridge" — growing your money reliably until you're ready to convert it or start drawing income.

What a MYGA is not designed for is liquidity. Most contracts allow penalty-free withdrawals of around 10% per year, but larger withdrawals during the surrender period come with fees. If you might need access to this money, keep an appropriate emergency reserve elsewhere before committing funds to a MYGA.

MYGA vs. Keeping Money in the Bank

This is probably the most common comparison people make, and it's worth being direct about: for money you don't need for three to five years, a MYGA almost always wins on rate. High-yield savings accounts and money markets have already begun dropping as the Fed cuts. Many are now back in the 4%–4.5% range — and trending lower.

A MYGA locks in today's rate for the full term. If rates continue to fall, your MYGA keeps earning what you agreed to on day one. That's the core appeal: predictability in an unpredictable rate environment.

The tradeoff is flexibility. Money in a savings account is accessible anytime. Money in a MYGA has strings attached for the duration of the surrender period. That tradeoff is worth thinking through carefully — ideally with someone who can look at your full picture, not just the rate.

A Word on Comparing Carriers

Not all MYGAs are created equal. Rates vary by carrier, term length, and the financial strength of the insurance company. A carrier offering an unusually high rate sometimes indicates they're taking on more risk to attract business — and that's a red flag worth investigating. When evaluating a MYGA, it's worth looking at the carrier's AM Best rating (A- or better is a reasonable baseline) alongside the rate.

Shopping across multiple carriers — which a licensed annuity advisor can do for you — typically turns up better options than going directly to a single company.

Ready to See What's Available for Your Situation?

If you're wondering whether locking in a MYGA rate right now makes sense for your retirement plan, I'm happy to walk through the numbers with you — no pressure, no sales pitch, just a straight conversation about your options.

Book a free 30-minute call at retire360.app/book and we'll look at current rates from top-rated carriers and whether a MYGA fits your goals. Spots fill up, so don't wait if you've been thinking about this.