The stock market is historically an effective way to grow your savings over time, but it comes with the risk of losing money when the market goes down. People looking for guaranteed low-risk ways to save may turn to a Certificate of Deposit (CD) for a higher interest rate than what’s offered by a savings account.
But there’s another way to lock in a higher interest rate: A Multi-Year Guaranteed Annuity (MYGA). MYGAs have been popular over the last few years for people wanting to lock in a higher interest rate, and we think more people should know about them.
Key benefits of a MYGA
- Interest rate for a set number of years.
- Compounding interest.
- Protected from market risk.
- No fees or expenses.
- MYGAs often have higher rates than CDs.
- Savings grow tax deferred — you don’t pay any taxes on the interest earned until you withdraw the money from the MYGA. With a CD, earned interest its taxable every year.
- MYGAs offer access to your account value starting in year 2, with 10% penalty-free withdrawals.
A MYGA can be a great option, depending on how much time you have to grow your money. Want to lock in a higher interest rate for a set number of years and grow your savings safely without market risk? Talk to your agent or financial advisor to see if a MYGA is right for you.
Learn more about National Life Group MYGAs.
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