# MYGA vs CD: Which Retirement Income Tool Actually Wins?

Hear a lot about Multi-Year Guaranteed Annuities (MYGAs) lately? Here's the quick breakdown: it's basically a fixed-rate investment where you lock in money for 3-7 years and get guaranteed returns—think of it like a beefed-up savings account.

**The core mechanics:**
- You drop a lump sum ($5K-$2M range typically)
- Get a locked-in interest rate for your chosen term
- Interest taxes? Deferred until you pull cash out
- Can usually withdraw some money penalty-free (unlike CDs)

**Why the buzz?** MYGA sales hit $27.4B in Q3 2022—up 138% year-over-year. Credit the rising interest rates making them actually worth it.

**MYGA vs CD reality check:**
Both offer safe, predictable returns. But MYGAs typically pay 0.5-1% higher rates (think 5.2% vs 4.5%). The tradeoff? MYGAs come with surrender fees if you bail early.

**Who actually benefits?** Mainly retirees 60+ looking to lock in stable income without stock market stress. Market value adjustments can tweak your payout if rates shift mid-term—not ideal, but part of the deal.

**Pro tip:** Always use the 10-day "free look" period before committing. Read the surrender fee schedule—that's where surprises hide.