MYGA vs Bank CD: The 2026 Rate Comparison

MYGAs consistently beat bank CDs, but by how much in 2026? Current MYGA leaders (CANNEX): - 3-Year: 6.40% (Corebridge Financial) - 5-Year: 6.65% (Atlantic Coast Life) Typical bank CD rates (April 2026): - 3-Year: 4.00-4.25% - 5-Year: 3.75-4.00% Why the gap? MYGAs can offer higher rates because insurance companies invest in longer-duration bonds and have lower overhead. The trade-off: MYGAs have surrender charges (typically declining over the term), while CDs have early withdrawal penalties. Tax advantage: MYGA interest is tax-deferred until withdrawal. CD interest is taxable annually. For clients in higher brackets, this difference compounds significantly. Are your clients still defaulting to CDs, or have they discovered MYGAs?