MYGA vs. CD: line up the term before the rate
Both can advertise a rate for a stated period, but they are different products with different protections, access rules, and tax treatment.
A five-line comparison
Use the actual documents for both choices.
- 1
Match the term
Compare the same number of months or years.
- 2
Record access
List penalties, surrender charges, and any permitted withdrawals.
- 3
Identify the backing
Separate FDIC deposit coverage from insurer-backed contract guarantees.
- 4
Check taxes
Use the account type and qualified tax advice, not a blanket assumption.
- 5
Mark the end date
Write down renewal and maturity instructions before signing.
Primary sources
- FDIC: What deposit insurance covers
- NAIC: Buyer's Guide to Fixed Deferred Annuities
- IRS Publication 575
Reviewed September 9, 2026