Why Falling Interest Rates Make MYGAs Especially Attractive Right Now

buskaretirement
Sat, 18 Oct 2025 19:00:00 +0000
Retirement Funds & Income

Interest rates have been on the move lately — and for savers, that can mean uncertainty. After several years of rate increases, the current trend is shifting downward. When rates drop, traditional savings vehicles such as CDs and money market accounts often follow suit, offering lower yields.

That’s why now is an ideal time to take a closer look at a Multi-Year Guaranteed Annuity (MYGA).

What Is a MYGA?

A MYGA is a type of fixed annuity that offers a guaranteed interest rate for a specific period, typically between three and ten years. During that time, your principal is protected from market volatility, and your earnings grow tax-deferred until you withdraw the funds or begin receiving income payments.

In essence, it’s similar to a CD — but often with higher interest rates, tax advantages, and the potential to convert the value into a stream of guaranteed income in retirement.

Why MYGAs Shine When Rates Are Falling

1. Secure Today’s Higher Rates

When rates fall, new financial products — including CDs and bonds — typically offer lower yields. A MYGA allows you to lock in the current rate for several years, ensuring your money continues to grow even as new products drop.

2. Predictable Growth Without Market Risk

Unlike stocks or mutual funds, MYGAs aren’t subject to market swings. Your rate of return is guaranteed by the issuing insurance company, providing steady growth that doesn’t depend on what’s happening in the broader economy.

3. Tax-Deferred Growth

Earnings within a MYGA aren’t taxed until you withdraw them. This allows your balance to grow faster over time compared to taxable accounts, especially if you don’t need immediate access to the funds.

4. Flexible Options at the End of the Term

When your MYGA term ends, you can often choose to renew, withdraw your funds, or transition the balance into another annuity product — such as one that provides lifetime income. This flexibility makes it a useful tool for both short- and long-term planning.

5. Stability During Uncertain Times

With inflation still a concern and market volatility always a factor, a MYGA can offer peace of mind. Knowing your money is earning a guaranteed rate helps offset uncertainty in other parts of your portfolio.

Who Might Benefit Most

MYGAs tend to appeal to conservative investors, retirees, or anyone nearing retirement who wants to preserve their savings while earning a competitive rate. They can also be a great fit for individuals currently holding large sums in CDs or low-yield savings accounts who want a CD alternative with stronger returns.

The Bottom Line

In a falling-rate environment, every fraction of a percent matters. Locking in a fixed rate today can help protect your purchasing power and ensure your savings continue to grow at a guaranteed pace — without exposure to market risk.

Don’t miss this opportunity to secure today’s higher MYGA rates before they’re gone.

If you’re interested in learning more about how a MYGA could fit into your retirement income strategy, our team can help you explore your options and find the right fit for your goals.
Call us at 715-355-4445 to see if a MYGA is right for you!