Step 1 · Your money

Run your deposit through all four

MYGAs grow tax-deferred (no 1099 until withdrawal). CDs and bonds get a 1099-INT every year — tax leakage every December. Treasuries skip state tax. Munis skip federal tax. The right vehicle depends on your bracket + state.

Deposit Amount

Money going into the vehicle

Term (years)

MYGA / CD / bond duration

Federal Tax Bracket

Marginal bracket while accruing

State Tax Rate

% — CA 9.3% · NY 6.85% · FL/TX/NV 0%

MYGA Rate (annual)

Current ~5.0-6.0% on 5-10yr terms

CD Rate (annual)

Brokered CD 5yr ~4.3-4.7%

Treasury Rate (annual)

10yr Treasury ~4.2-4.4%

Corporate Bond Rate (annual)

Investment grade ~5.0-5.5%

Withdraw at end of term?

Triggers the deferred MYGA tax

Winner after tax

—

MYGA

—

CD (Brokered)

—

Treasury

—

Corporate Bond

—

Why the gap exists

MYGA: No 1099 each year. All interest compounds inside the contract. You pay ordinary income tax only when you withdraw — and only on the gain (basis comes out tax-free). If you let it roll, you can keep deferring for life.

CD / Brokered CD: Bank issues 1099-INT every December. You pay federal + state tax on the interest that year, even if you don’t touch the money. So less interest stays invested to compound.

Treasury (federal): Same 1099 every year for federal tax, BUT exempt from state income tax. In CA at 9.3% that’s real money.

Corporate bond: Same annual taxation as CDs — federal + state on the coupon. Higher rates but higher tax leakage.

What this calculator does NOT show: MYGAs have surrender schedules (early withdrawal penalty). CDs have early-withdrawal interest forfeiture. Bonds have market-value risk if sold before maturity. These tools are not 1:1 substitutes; the right choice depends on whether you actually plan to hold to maturity, your liquidity needs, and your beneficiary situation.

Want this comparison run on real current rates?

Hans tracks live MYGA rates from carriers like Athene, Nationwide, Equitrust, and AIG — plus brokered-CD secondary-market yields, on-the-run Treasury rates, and high-grade corporate spreads. Free 30-minute walkthrough, no products sold.