Both a CD and a MYGA lock in a fixed rate for a set term, which is why they're constantly compared. As of today, the numbers aren't close: Bankrate's own best available rate on a 5-year CD is 4.35%, against a top MYGA rate of 6.25% for the same term. Rate is only part of the story — for the full tax-deferral math behind these numbers, see our complete MYGA vs. CD breakdown. This post is a live snapshot of where both markets stand today.
Today's Rates, Side by Side
| Term | Best CD Rate (Bankrate) | Top MYGA Rate |
|---|---|---|
| 5 Years | 4.35% | 6.25% |
| 7 Years | 4.05%* | 7.20% simple (~6.00% compound-equiv.) |
| 10 Years | 4.25%* | 6.25% |
CD rates sourced directly from Bankrate.com, "Best 5-Year CD Rates for August 2026," updated Aug. 6–12, 2026. For reference, Bankrate's national average for a 5-year CD is just 1.74% APY — the 4.35% figure above reflects their top surveyed rate, not the average you'd likely be offered at a typical local bank. *7- and 10-year CDs are uncommon; most banks only offer terms up to 5 years, so these figures reflect one of the few providers offering those exact terms rather than a broad market survey.
Why the Rate Gap Exists
CDs are a bank product, insured by the FDIC, and priced primarily off short-term deposit competition between banks. MYGAs are an insurance product, backed by the issuing carrier's claims-paying ability and state guaranty associations, and priced off longer-duration bond yields the carrier can lock in for your exact term. That structural difference is a big part of why MYGA rates have consistently run ahead of CD rates through this part of the cycle. See this month's full MYGA rate update for more on what's driving MYGA rates specifically.
Rate Isn't the Only Difference That Matters
- Tax treatment. CD interest is taxed as ordinary income every year, whether or not you touch the money. A MYGA grows tax-deferred — you don't owe anything until you actually withdraw funds, which can meaningfully change your after-tax outcome depending on your bracket.
- How you're insured. CDs are backed by FDIC insurance up to $250,000 per depositor, per bank. MYGAs are backed by the issuing carrier's claims-paying ability and, as a backstop, state guaranty associations — a different protection structure, not a lesser one, but worth understanding rather than assuming they work identically.
- Early access. Both products penalize early withdrawal, but the structures differ — CD penalties are typically a flat number of months' interest, while MYGA surrender charges usually follow a declining schedule over the contract's term. Most MYGAs also allow a penalty-free withdrawal each year (commonly up to 10%), which not every CD offers.
The takeaway: At every term we compared today, the best available MYGA rate is meaningfully ahead of the best available CD rate — and that's before accounting for tax-deferred growth, which widens the after-tax gap further for many savers. Rate alone is a reasonable starting point, but the full comparison is what actually determines which is right for your money.
Want a side-by-side built around your actual numbers? Contact Devin to compare your real CD offer against live MYGA rates from 40+ carriers. No pressure, no sales pitch.