OwnYourPension

MYGA vs. CD After-Tax Calculator

A bank CD taxes your interest every year. A multi-year guaranteed annuity (MYGA) lets the whole balance grow tax-deferred and you settle up with the IRS only at the end. Same idea, different tax timing — and over a multi-year term that timing can matter. Put in your numbers and see the after-tax difference. An estimate to learn from — not a quote.

“OwnYourPension” is an educational brand name — not a pension provider. Annuities are insurance products, not employer or government pensions, and are not insured by the PBGC, the FDIC, or any government agency. Guarantees depend solely on the claims-paying ability of the issuing insurance company.
Illustrative rates only. The default MYGA rate, CD rate, and tax bracket below are placeholders to show how the math works — they are not live quotes. Enter the real rates you have been quoted (and your own bracket) for a closer estimate; a licensed specialist will confirm current, state-specific carrier rates.

Your numbers

After-tax comparison

MYGA after-tax ending value
$0
$0
CD after-tax
$0
MYGA after-tax
$0
MYGA advantage
Enter your numbers to see the after-tax difference.

Want this run on real, current rates?

These figures use the rates you typed in — the defaults are placeholders. For an honest read on whether a MYGA actually beats a CD for your money, with a current state-specific carrier rate, send your details and an OwnYourPension specialist will follow up. If a CD is the better call for you, we’ll tell you that.

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Important. This calculator is for educational purposes only and is not a quote, an offer, or a recommendation to buy any product. The results use rates and a tax bracket you enter; the defaults are illustrative placeholders, not live quotes, and any actual annuity or CD will differ. Actual results depend on the issuing insurance company or bank, the specific product, prevailing rates at purchase, your state of residence, the options you select, and your actual tax situation. A MYGA is not FDIC-insured; a bank CD generally is, up to applicable limits. A MYGA’s guarantee is backed solely by the claims-paying ability of the issuing insurance company — it is not guaranteed by OwnYourPension, by any insurance agency, or by any government agency, and the state guaranty association is not federal deposit insurance. A MYGA is generally less liquid than a CD, with a multi-year surrender-charge schedule for early withdrawals. Tax deferral is not tax-free: tax is generally owed on the gain when it is withdrawn, and withdrawals before age 59½ may incur an additional tax. Tax references here are general and are not tax advice; consult your own tax professional. OwnYourPension is an educational resource and is not an insurance company; annuities are offered through licensed insurance agencies we work with, who are compensated by commission. OwnYourPension is affiliated with T&T Capital Management LLC, a registered investment adviser and fiduciary that charges a fee for advisory services; which entity serves you, and how it is compensated, is disclosed before you purchase.