A multi-year guaranteed annuity, commonly called a MYGA, is a fixed annuity that promises a guaranteed interest rate for a specified multi-year period, such as three, five, or seven years. During the guarantee term, the insurer credits interest at the stated rate regardless of market fluctuations, and the contract typically allows limited penalty-free withdrawals each year, subject to surrender charges for larger withdrawals. At the end of the term, the owner may renew at a new rate, annuitize, transfer to another annuity via a 1035 exchange, or surrender the contract. MYGAs appeal to conservative investors seeking predictable growth and tax-deferred accumulation without the volatility of equities. For retirement and income planning, a multi-year guaranteed annuity can complement CDs or bond ladders by locking in yields with insurance-company guarantees backed by the insurer's financial strength and state guaranty association protections where applicable.

In practice, advisors present multi-year guaranteed annuities to clients who want higher yields than bank CDs but prefer fixed, predictable returns. Rate shopping among carriers is common, as MYGA competitiveness varies frequently with interest rate environments and company strategies. Producers highlight surrender-charge schedules, market-value adjustment features, free-withdrawal allowances, and renewal options at term-end. MYGAs are often used for short- to intermediate-term money that clients do not need to access fully but may want available for future opportunities. Compliance and suitability reviews focus on time horizon, liquidity needs, and replacement considerations when moving from CDs, money markets, or older annuities. Advisors also coordinate with tax professionals to explain how interest in a multi-year guaranteed annuity accrues tax deferred and becomes taxable when withdrawn or when the contract is annuitized.