MYGA vs high-yield savings
A high-yield savings account is a bank deposit, FDIC-insured up to limits, and you can withdraw any time. Its rate can change whenever the bank decides. A MYGA locks a fixed rate for a set term, grows tax-deferred, and has surrender charges if you take out more than the free amount early.
Many people keep emergency money in savings and put money they won't need for several years into a fixed-term option. See this week's numbers on the rate board.
Frequently asked questions
Is a MYGA better than a high-yield savings account?
They do different jobs. Savings is for money you may need any time. A MYGA is for money you can leave alone for the full term in exchange for a locked rate.
Can my savings rate drop?
Yes. High-yield savings rates are variable and can fall at any time. A MYGA rate is guaranteed for its term.
Are MYGAs safe?
A MYGA is backed by the financial strength and claims-paying ability of the issuing insurance company, not the FDIC. That is why we show each insurer's AM Best financial strength rating. Every state also runs a life and health insurance guaranty association that provides limited protection, with limits that vary by state.
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