Direct answer: A Multi-Year Guarantee Annuity (MYGA) is a type of fixed annuity that guarantees a specific interest rate for the entire term of the contract, typically 3–10 years. Unlike traditional fixed annuities that may adjust rates after an initial period, MYGAs lock in your rate for the full surrender period, providing predictable growth and principal protection. They're often compared to CDs but typically offer higher rates and tax-deferred growth.
Your principal is protected from market losses; growth is backed by the claims-paying ability of the issuing insurance company and by state guaranty associations. For a regulator's overview of how fixed annuities work, see the NAIC's annuities overview.
Compare the guaranteed rate, term length, surrender charges, free-withdrawal provisions, and the insurer's financial strength ratings. Interest grows tax-deferred until withdrawal; withdrawals before age 59½ may face a 10% IRS penalty. Compare live rates on the MYGA rates page or see the full Annuities guide.