By Hans Goldstein, Founder, Retirement Literacy Foundation. He is also a licensed California insurance producer (#4273294). Education, not a product recommendation.Published · Methodology dated October 4, 2026
5-year MYGA top range leads the top 5-year CD by 1.50 points as of September 24, 2026. A-rated-or-better insurers paid up to 6.00% on 5-year MYGAs (5.80% to 6.00%), against 4.50% APY at the top of the best nationally available 5-year CDs. The gap to the 5-year Treasury (5.03%) was 0.97 points.
The MYGA vs CD Spread Index tracks, once a month, how far guaranteed rates from insurance companies sit above the best bank CD rates and Treasury yields for the same term. It is published as education: the gap is real money, and so are the trade-offs that come with it. Every figure has its own date and source, and the full series is a free CSV.
October 2026: not yet published. The row is added once that month's 5-year MYGA range and top CD range are recorded from their sources; the index never carries a stale rate forward.
The spread, month by month
Index table
| Month | As of | 5-yr MYGA range (A-rated) | Top 5-yr CD (APY) | Big-bank 5-yr CD | 5-yr Treasury | Spread vs top CD | Spread vs Treasury |
|---|---|---|---|---|---|---|---|
| September 2026 | 9/24/2026 | 5.80% to 6.00% | 4.35% to 4.50% | 3.60% | 5.03% (9/24/2026) | 1.50 pts | 0.97 pts |
3, 5 and 7-year terms
The highest public rate sheet ($100,000+ premium) among four tracked insurers rated A- or better by AM Best, against the Treasury par yield of the same term, for the latest row:
| Term | Highest tracked rate sheet, $100,000+ | Treasury par yield, same term | Gap vs Treasury |
|---|---|---|---|
| 3-year | 5.65%, insurer rated A+ by AM Best, effective 9/25/2026 | 4.99% | 0.66 pts |
| 5-year | 5.85%, insurer rated A+ by AM Best, effective 9/25/2026 | 5.03% | 0.82 pts |
| 7-year | 5.95%, insurer rated A+ by AM Best, effective 9/25/2026 | 5.10% | 0.85 pts |
Treasury month-end context
| Month | Date (last in month) | 3-yr | 5-yr | 7-yr |
|---|---|---|---|---|
| October 2026 | 10/2/2026 | 4.96% | 5.06% | 5.17% |
| September 2026 | 9/30/2026 | 5.00% | 5.09% | 5.19% |
| August 2026 | 8/31/2026 | 4.40% | 4.49% | 4.62% |
| July 2026 | 7/31/2026 | 4.34% | 4.45% | 4.59% |
| June 2026 | 6/30/2026 | 4.15% | 4.19% | 4.30% |
| May 2026 | 5/29/2026 | 4.06% | 4.13% | 4.27% |
| April 2026 | 4/30/2026 | 3.91% | 4.02% | 4.20% |
| March 2026 | 3/31/2026 | 3.81% | 3.92% | 4.11% |
| February 2026 | 2/27/2026 | 3.39% | 3.51% | 3.72% |
| January 2026 | 1/30/2026 | 3.60% | 3.79% | 4.01% |
Why the gap exists, and what it costs
A MYGA is a fixed annuity: an insurance company promises one interest rate for a set number of years. Insurers invest premiums mostly in corporate bonds and mortgages held to maturity, so they can often pay more than a bank pays on a CD. The extra rate is not free. It comes with five differences every saver should weigh:
- Not FDIC insured. A MYGA is an insurance contract, not a bank deposit. Its rate and principal guarantees are backed by the financial strength and claims-paying ability of the issuing insurer, with state guaranty associations as a limited backstop (coverage limits vary by state). A bank CD is FDIC insured up to $250,000 per depositor, per bank, per ownership category.
- Surrender charges. Leaving a MYGA early usually costs a surrender charge for the length of the term (often several percent of the contract value in the early years), and many contracts add a market value adjustment. Most allow a free withdrawal each year, commonly the interest or 10%. Breaking a CD usually costs a few months of interest.
- State availability. MYGA rates and contract versions vary by state, premium band and issue age, and some contracts are not sold in every state. A range on this page is the shape of the market, not a quote.
- Tax treatment. MYGA interest is tax-deferred until withdrawn and then taxed as ordinary income; withdrawals of gain before age 59½ can owe an additional 10% federal tax. CD interest is reported on a 1099-INT and taxed every year, even when it stays in the account. Treasury interest is federally taxable but exempt from state income tax.
- Comparability. MYGA rates are effective annual rates and CD figures are APYs, so they compare directly. Treasury par yields are bond-equivalent (semiannual) yields to maturity and are shown for scale. The index compares the top of each range; individual buyers will see different rates.
Questions to ask before choosing either
Could I need this money before the term ends? Is the insurer rated A or better, and what does my state's guaranty association cover? Would tax deferral help me, or would I rather pay tax each year? How does the rate compare with a Treasury of the same term, which is state-tax-free?
Methodology (latest data as of September 24, 2026)
What is measured. Once a month the index records three dated numbers on the same as-of date: (1) the 5-year MYGA rate range paid by insurers rated A or better (A- and up), read by hand from a subscription carrier rate data service (AnnuityRateWatch); (2) the range of the best nationally available 5-year CD APYs, read by hand from a published national CD table (DepositAccounts), with a big-bank 5-year CD (Capital One 60-month) for context; and (3) the 3, 5 and 7-year Treasury par yields from the official U.S. Treasury daily par yield curve file, on the MYGA as-of date or the last trading day before it.
The index value. The Spread Index is the top of the MYGA range minus the top of the CD range, in percentage points. We also publish the low-to-low gap, the gap to the 5-year Treasury and the gap to the big-bank CD, so readers can pick the comparison that fits their story.
3 and 7-year terms. A separate table shows the highest $100,000+ rate on the public rate sheets of four insurers rated A- to A++ by AM Best whose rate sheets are public. These sheets are read automatically each week, twice per read, and a sheet is used only once it is in effect. This is a narrow tracked set, not the whole market.
Rules. No value is estimated or carried forward. A month is published only when its MYGA range is dated in that month and the CD range is dated within 21 days of it; otherwise the month is held and marked as not yet published. Published rows are never silently changed; a correction would be added as a dated note. Each row in the CSV carries its own as-of dates and source types.
Series start. The series starts in September 2026 (as of September 24, 2026), the first date for which all three inputs were recorded from named sources on the same day. Earlier MYGA and CD figures on our pages were not recorded this way, so they are not used. Treasury month-end yields are shown from January 2026 for context only.
Sources
- U.S. Treasury, daily par yield curve rates
- DepositAccounts, 5-year CD rates table
- AnnuityRateWatch carrier rate data (subscription; A-rated-or-better insurers, 5-year MYGAs)
- Capital One, CD rates (60-month)
- FDIC, deposit insurance coverage
- NOLHGA, how state guaranty associations protect annuity owners
- IRS Publication 575, Pension and Annuity Income
- AM Best, financial strength ratings search
Goldstein, H. (2026). MYGA vs CD Spread Index, September 2026 (data as of September 24, 2026). Retirement Literacy Foundation. https://retirementliteracyfoundation.org/research/myga-vs-cd-spread-index/
Journalists and educators may quote and chart this index with a link to this page. Updated monthly. Data: download the CSV.
Get the free Social Security guide.
You’re reading about MYGA vs CD spread index. Social Security touches almost all of it, and it is where the costliest mistakes happen. We’ll email you our guide, the taxable-benefit thresholds, the survivor-benefit trap and the claiming-age math, in plain English, plus an invite to the next free class. This is a public charity; there is nothing to buy.
The Retirement Literacy Foundation is a 501(c)(3) public charity (EIN 41-5062266). Free public education only. We don’t sell financial products and we don’t give individualized advice. Phone is optional. Leave it blank and we’ll only email you. Unsubscribe any time.