CD coming due?
Before you renew, compare it to a MYGA.
A multi-year guaranteed annuity (MYGA) works a lot like a CD: a fixed rate, locked in for a set number of years. The differences, in rates and in taxes, can add up to real money.
CD vs. MYGA at a glance
| Bank CD | MYGA | |
|---|---|---|
| Rate | Fixed for the term | Fixed for the term (often 2 to 10 years) |
| Taxes on interest | Taxed every year, even if you don't touch it | Tax-deferred until you withdraw it |
| Backed by | FDIC insurance, up to its limits | The financial strength and claims-paying ability of the issuing insurance company |
| Early access | Early withdrawal penalty, usually a few months of interest | Most allow about 10% a year free; more than that during the term carries a surrender charge |
| Before age 59½ | No IRS penalty | Gains withdrawn before 59½ may face a 10% IRS penalty |
| At the end of the term | Renew, cash out, or move it | Renew, cash out, move it, or turn it into lifetime income |
MYGAs fit money you won't need for the length of the term. Money you may need soon belongs somewhere more liquid.
CD vs. MYGA calculator
Enter the rates you've been quoted. The example rates are placeholders, not current offers.
What I'll do for you
- Pull current MYGA rates from multiple carriers, not just one
- Check each company's financial strength rating
- Match the term to when you'll actually need the money
- Show you the surrender schedule and free-withdrawal terms in plain English
- Tell you if renewing your CD is the better move
Rates change often. I keep specific rates off this site so they're never out of date. Schedule a call and I'll show you today's numbers for your amount and term.
Have a question about your money?
Bring me the numbers: a CD that's coming due, a 401(k) you're about to roll over, or an illustration someone sent you. I'll give you a straight read on it. The call is free and commits you to nothing.