MYGA rates moved higher again this month, and the reason is straightforward: the interest rate environment is what's driving it. Fixed annuity rates are priced directly off the yields carriers earn on the bonds backing your contract — when those yields hold firm or climb, carriers pass more of that through to you. As of this update, top rates stand at 6.25% for a 5-year term, 7.20% simple interest for a 7-year term, and 6.25% for a 10-year term.
This Month's Top Rates
| Term | Rate | Crediting Type |
|---|---|---|
| 5 Years | 6.25% | Compound |
| 7 Years | 7.20% | Simple (~6.00% compound-equivalent) |
| 10 Years | 6.25% | Compound |
The 7-year figure comes from Knighthead Life's Staysail 7, currently the standout rate in its term category. It's a simple-interest product rather than compound — if you're comparing it head-to-head against a compound-interest MYGA, see our full breakdown of how simple and compound interest actually compare before assuming the higher number wins outright.
Why Rates Are Moving Up Right Now
MYGA rates aren't set arbitrarily by carriers — they're priced directly off the fixed-income yields available in the broader market at the time. When those underlying yields hold steady or climb, carriers can afford to credit a higher guaranteed rate to policyholders without taking on additional risk. That's exactly the environment we're in this month: the rate backdrop has firmed up enough that several carriers, including Knighthead Life, have room to push their guaranteed rates higher rather than trim them. For more on what generally drives this, see our 2026 rate outlook.
This is the same underlying force behind this month's rising lifetime income payout factors — both MYGA crediting rates and income payout factors are downstream of the same rate environment, just expressed differently depending on the product.
The takeaway: Rates like these don't hold indefinitely. Carriers reprice frequently — sometimes weekly — based on where the underlying market sits. If a specific term or rate catches your eye, it's worth locking in a real quote rather than waiting on the assumption it'll still be there next month.
Want to see exactly which carriers are offering these rates? Contact Devin for a free, no-pressure comparison. Licensed in multiple states. No commitment required.