
A multi year guarantee annuity (MYGA) is an annuity where the current interest rate is guaranteed for a period longer than one year. Many multi year guarantee annuities offer a 2, 3 year or longer guaranteed time frame.
These annuities were designed primarily to appeal to individuals who may be interested in certificates of deposit as an alternative. They provide for a stable interest rate that is higher than that paid by CD's.
These annuities normally provide the contract owners with limited liquidity. The contract imposes certain surrender charges for surrendering the annuity at any time before the end of the current guaranteed rate period.
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