Compare the contract, access and protection before the rate

A certificate of deposit (CD) is a bank deposit. A multi-year guaranteed annuity (MYGA) is an insurance contract with a guaranteed-rate period. Compare access, protections and taxes as well as the stated rates.

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Hypothetical illustration

Put two stated rates on the same basis

Enter hypothetical values. This is not a quote and does not model taxes, penalties, surrender charges or market-value adjustments.

Starting amount $Term in years Illustration A annual effective rate %Illustration B annual effective rate %

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Identify the issuer and protection system

Eligible bank deposits may receive Federal Deposit Insurance Corporation (FDIC) coverage within applicable limits. Annuity guarantees rely on the insurer and applicable state guaranty-association rules, not FDIC insurance.

Normalize the rate illustration

Use the same starting amount, term and compounding assumption. The comparison tool assumes annual effective rates and annual compounding for both entries. Confirm how each quoted rate is calculated before using it; a first-year promotional rate may not apply for the full term.

Compare access and early-exit rules

CD penalties and annuity surrender charges are different. An annuity may also include withdrawal provisions or a market-value adjustment.

Treat taxes as an individual question

Interest and annuity taxation can differ, and retirement accounts add another layer. A tax professional should review the actual ownership and transaction.

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CD and MYGA comparison checklist

A side-by-side list of issuer, term, rate basis, access, protection and tax questions.

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Choose whether to request professional help

Annuity inquiries are handled by a separate partner, not by the Farmers agency that handles other insurance inquiries.

Online contact requests are currently unavailable. Read or print the guide, then take your questions to a qualified professional of your choice. Using this page does not request contact or confirm insurance availability.

Sources and limits

Check the current information

Content updated September 6, 2026. General sources explain the category. Current contracts, program documents and applicable authorities control individual situations.

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Keep the next step specific

Use the information above with the current documents and appropriately qualified professionals for your situation.

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