On October 14, 2026 the highest 5-year MYGA rate on four tracked public insurer rate sheets (6.05%) sat 1.05 points above the top 5-year CD APY (5.00%) and 1.05 points above the 5-year Treasury par yield (5.00%). That is 0.30 points narrower than the restated September edition (1.35 points). The top CD now equals the Treasury yield.
The MYGA vs CD Spread Index is a recurring Retirement Literacy Foundation data series. Once a month it records, on one date, the best 5-year guaranteed annuity rate on public insurer rate sheets, the best 5-year CD rate, and the 5-year Treasury yield, then publishes the gap. This is Edition 2 (October 2026). Every figure carries its own date and source, and the full series is a free CSV under a Creative Commons license.
Edition 2 · data as of October 14, 2026 · next edition: November 2026 (second half of the month) · license: CC BY 4.0
The spread, month by month
History table
| Edition | Month | As of | Tracked public 5-yr MYGA | Top 5-yr CD (APY) | 5-yr Treasury | Spread vs top CD | Spread vs Treasury | Change vs prior edition |
|---|---|---|---|---|---|---|---|---|
| 2 | October 2026 | 10/14/2026 | 5.50% to 6.05% | 4.70% to 5.00% | 5.00% | 1.05 pts | 1.05 pts | -0.30 pts |
| 1 | September 2026 | 9/24/2026 | 5.85% | 4.35% to 4.50% | 5.03% | 1.35 pts | 0.82 pts | first edition |
Correction and restatement, October 14, 2026
Edition 1 (published October 4, 2026) took its 5-year MYGA range from a subscription rate-data service. Subscription data cannot be republished, so RLF removed it and restated September using only public insurer rate sheets. September moved from 1.50 to 1.35 points. The September CD figure (4.35% to 4.50%) and Treasury yields are unchanged. From Edition 2 on, every input is a source anyone can open.
5-year rates on the four tracked sheets
Each sheet is the insurer's own published rate sheet, $100,000+ premium band, in effect on October 14, 2026. The spread between the highest and lowest of the four was 0.55 points, which on a $250,000 premium is about $1,375 a year.
| Tracked sheet | 5-year rate, $100,000+ | Effective |
|---|---|---|
| Insurer rated A+ by AM Best | 6.05% | 10/14/2026 |
| Insurer rated A- by AM Best | 5.95% | 10/6/2026 |
| Insurer rated A++ by AM Best | 5.65% | 10/5/2026 |
| Insurer rated A++ by AM Best | 5.50% | 10/12/2026 |
3, 5 and 7-year terms
The highest public rate sheet ($100,000+ premium) among the four tracked insurers, against the Treasury par yield of the same term, for the latest edition:
| Term | Highest tracked rate sheet, $100,000+ | Treasury par yield, same term | Gap vs Treasury |
|---|---|---|---|
| 3-year | 5.75%, insurer rated A+ by AM Best, effective 10/14/2026 | 4.92% | 0.83 pts |
| 5-year | 6.05%, insurer rated A+ by AM Best, effective 10/14/2026 | 5.00% | 1.05 pts |
| 7-year | 6.15%, insurer rated A+ by AM Best, effective 10/14/2026 | 5.09% | 1.06 pts |
Treasury month-end context
| Month | Date (last in month) | 3-yr | 5-yr | 7-yr |
|---|---|---|---|---|
| October 2026 | 10/14/2026 | 4.92% | 5.00% | 5.09% |
| 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 (Edition 2, data as of October 14, 2026)
What is measured. Once a month the index records three dated numbers on the same as-of date: (1) the highest 5-year rate, $100,000+ premium band, on each of four tracked insurer rate sheets, using the rate sheet in effect on the as-of date; (2) the top three 5-year CD APYs on a published national CD rate table; and (3) the 3, 5 and 7-year U.S. Treasury par yields from the official daily par yield curve file.
The index value. Spread Index = highest tracked public 5-year MYGA rate minus the top 5-year CD APY, in percentage points. Companion figures: the low-to-low gap (lowest of the four tracked top rates minus the third-best CD), the gap to the 5-year Treasury, and the change from the prior edition.
Public sources only. RLF uses only sources anyone can open without a login or license: insurer-published rate sheets, a published national CD table and the Treasury's official data. Subscription or confidential data is not used or republished.
The tracked set. Four insurers whose rate sheets are public and who are rated A- to A++ by AM Best (ratings as recorded by RLF; verify current ratings at ambest.com). It is a narrow set, not the whole market, and it is not a recommendation of any insurer. Where a sheet lists state groups, the rate for the largest group of states is used; some states pay slightly less. Sheets are read automatically each week, twice per read, and a sheet is used only once it is in effect (a newer sheet that is published but not yet effective is not used).
CD input. The top three 5-year APYs on the national table, as listed on the as-of date. Many top CD offers require a minimum deposit (often $10,000 or less), lower than the $100,000+ MYGA band used here, and online banks may be FDIC insured only up to $250,000 per depositor. Bankrate's national average 5-year CD APY is recorded for context.
Rules. No value is estimated or carried forward. A published edition is not silently changed; a correction is added as a dated note on this page and in the CSV note column. Each CSV row carries its own as-of dates and source descriptions.
Release schedule. One edition per month, recorded on a single as-of date in the second half of the month, with the URL, CSV and citation line staying the same. Edition numbers are sequential from the first edition (September 2026).
Version history. Edition 1 (September 2026, published October 4, 2026): MYGA range taken from a subscription data service and CD range from DepositAccounts. Edition 2 (October 2026, published October 14, 2026): all inputs public; September restated on public sheets (1.50 to 1.35 points); the CD source changed to Bankrate because DepositAccounts blocks automated reads. The two CD tables are not identical lists, so part of the September to October change can reflect the source rather than the market.
Limitations. Rates change daily; a buyer sees rates by state, age, premium and date. MYGAs and CDs differ in protection, liquidity and tax treatment (see above). The index shows the shape of the market on one date and is education, not a quote or a recommendation.
License. The data and charts on this page are licensed Creative Commons Attribution 4.0 (CC BY 4.0). Reuse them with credit and a link to this page. Underlying rates belong to their publishers.
The extra yield comes with insurer credit risk; are fixed annuities safe explains the guaranty limits.
Treasuries, ladders, I bonds and savings are covered in alternatives to CDs.
Sources
- U.S. Treasury, daily par yield curve rates (official CSV)
- Bankrate, 5-year CD rates and national average (Edition 2 CD input)
- DepositAccounts, 5-year CD rates table (Edition 1 CD input)
- Athene, MaxRate current rates (public rate sheet)
- MassMutual, Stable Voyage rate sheet (public)
- Delaware Life, Pinnacle Plus MYGA rate sheet (public PDF)
- New York Life, Secure Term Fixed Annuity rates (public)
- AM Best, financial strength ratings search
- FDIC, deposit insurance coverage
- NOLHGA, how state guaranty associations protect annuity owners
- IRS Publication 575, Pension and Annuity Income
RLF Education Team. (2026). MYGA vs CD Spread Index, Edition 2 (October 2026; data as of October 14, 2026) [Data set]. Retirement Literacy Foundation. https://retirementliteracyfoundation.org/research/myga-vs-cd-spread-index/
Short form: "RLF MYGA vs CD Spread Index, October 2026 edition". Journalists and educators may quote and chart the index under CC BY 4.0 with a link to this page. Updated monthly at this URL. Data: download the CSV.
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