Savers have not seen numbers like these in a long while. Guaranteed annuity interest rates this summer are running roughly 5.5 to 6.5 percent a year, depending on the length of the term and the insurance company behind the contract. Rates remain near their highest levels in about 15 years.

The product paying those rates is the multi-year guaranteed annuity, or MYGA. If the term is new to you, this guide covers what a MYGA is, what it pays right now, and — just as important — what it asks of you in return.

Guaranteed annuity interest rates and the MYGA behind them

A MYGA works much like a bank certificate of deposit, except it comes from an insurance company. You deposit a lump sum. The insurer promises a fixed interest rate for a set term — commonly 3, 5, or 7 years. When the term ends, you can take your money, renew, or move it elsewhere.

One difference you should never gloss over: a MYGA is not a bank product and is not FDIC-insured. Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company. State guaranty associations add another layer of protection, subject to each state's limits — but the insurer's own strength still matters most.

What the rates look like this July

Notice the trade hiding in that list. The most eye-catching rates often come from insurers with weaker financial strength grades. Accepting a somewhat lower rate from a stronger company is a trade many careful savers are glad to make.

How do these numbers stack up against the bank? That depends on your bank — which is exactly the point. Bring your current CD rates to the comparison and let the math speak. On a multi-year commitment, even a modest difference adds up.

MYGA or CD? An honest comparison

The two products rhyme, but they are not twins. A CD carries FDIC insurance up to the legal limits; a MYGA's promise rests on the insurer. CD interest is taxed every year; MYGA interest grows tax-deferred until you withdraw it, which savers in higher tax brackets often appreciate. And CDs are generally easier to exit, while MYGAs charge surrender penalties on early withdrawals beyond the allowed amount.

Neither wins across the board. Money you might need soon belongs where you can reach it. Money you can commit for several years, at a locked-in rate, with taxes deferred — that is the job a MYGA was built to do.

The fine print that deserves your attention

MYGAs reward patience and penalize early exits. Withdraw more than the contract allows before the term ends and surrender charges apply — and they can be significant. Most contracts do permit limited penalty-free withdrawals each year, often the interest or a small percentage of the balance. Even so, this is not the place for your emergency fund.

Ask what happens at maturity, too. Some contracts automatically renew into a new term if you do nothing. Put the maturity date on your calendar so the next decision stays yours — a term that ends without a plan tends to renew by default, and default is rarely the same as deliberate.

Three questions before you sign anything

What this means for you

If you have savings sitting in CDs or a bank account — money you truly will not need for several years — comparing today's guaranteed annuity interest rates against your bank's offer is worth a short conversation. The difference on a meaningful balance compounds year after year. Just go in clear-eyed: know the term, know the insurer, know the exit rules, and commit only dollars you can genuinely leave alone.

And if the answer turns out to be a CD after all, that is a perfectly good outcome too. The goal is a deliberate choice made with current numbers in hand — not a guess, and not a product for its own sake.